# Wholesale scones and muffins



## lentil (Sep 8, 2003)

Hi all! 

I have a quick question. I just picked up a daily wholesale order for muffins and scones. My ingredient cost ranges from .38 to .50 per piece depending upon add ins. What is the standard for wholesale pricing? 2x cost? 3x seems too high.

Thanks!


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## jbd (Mar 17, 2008)

Have you considered any of the non ingredient costs? What volume of business-- i.e. 2 dz of each 12 dz of each??

2x the ingredient costs might get eaten up pretty quickly with non ingredient costs on small orders.


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## lentil (Sep 8, 2003)

jbd,

please explain what you mean by "non ingredient costs". Boxes, other packaging? I hadn't figured those in, but thought I'd transport them in plastic containers and rotate them daily.


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## jbd (Mar 17, 2008)

labor involved from purchasing of ingredients all the way through delivery, utilities, insurance, taxes of all kinds, profit, packaging costs, transportation costs, any record keeping expenses involved.

When all these things are considered you may in fact be losing money if you are at 2x ingredient cost for small production runs.


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## lentil (Sep 8, 2003)

When I sell something in my shop or catering, I figure the mark up to be anywhere between 3x and 4x or more which takes into consideration the non-ingredient costs. How do I figure wholesale pricing?


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## jbd (Mar 17, 2008)

How much would sell the scones or muffins for in your shop? Then use a percentage of that retail price. Your "wholesale" customer may not want to pay that price.

One thing you have not answered here is the production volume you are anticipating. If the production volume is low, you may well not be able to take this on as a wholesale account. As I have seen bbally comment a couple of times(probably paraphrased here) "if it doesn't make money, we don't do it." Such is the nature of business.

You really need to look at the break even point of the expected production volume.


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