I am just starting out my cake business, and a prominent restaurant has tried my gluten free and regular cakes. They are asking for a price list and i have a hard time researching HOW to come up with a price list for wholesale. It is much easier to establish a price for the public- but for wholesale seems to be a very grey, "secretive" area.... ok not secretive maybe but definitely confusing....
Can anyone PLEASE help with any ideas or experience you've had????????
I dont want to blow this opportunity but also don't want to be too cheap... :
Thank you so much!
selling wholesale is different that retail. you have to have a differnt license to sell wholesale. everything must be labeled as well. Check with your state on the laws.
In culinary school we were told that wholesale was 90% of retail.
And psurrette is SO right. At least around here, the laws are way different for selling wholesale.
I read many good posts here about wholesale versus retail, and in the end, it seems like price many small shops just can't handle a big price cut to do it. Many complained about working too cheap.
Comes down to how much YOU save by buying in bulk (if the orders are big enough), or making an assembly line type plan to help save labor. Best comments I heard were, "Why should I only make $30 if I sell to ABC restaurant, when I can make $50 if I sell to Mrs. Jones?".
But if the restaurant names you as the baker, you get extra exposure which helps you in other ways (but I doubt anybody would do that).
Don't sell yourself short. Seems like the easiest is a small percentage off based on how much they order. Order $100-$300 per month, get 5%; order $301-$600 get 10%... or something like that.
Establishing a wholesale price isn't that much more difficult than retail pricing...you just need to figure out what you want the final price to be at the retailer, then work backwards based on that retailer's markup. If the resulting wholesale price still makes you enough a profit, then you can go ahead with the deal, otherwise you'll probably want to skip it.
Thank you everyone for the responses and the shared knowledge. you are right- we can't go broke on it, can't be too cheap...
thank you so much!
I sell both, but most of my business is retail. I also base my prices on whether it is consignment ( i take the leftover product home) or if they are buying outright. Consignment is more expensive. Also the area of the retail establishment. I know where I live & sell to 1 store in a rural community, people will not spend as much as the place I sell to a few town's over, where it is a city with a higher income level. If they will pay more, i sell it for more. Good luck!