I have 2 questions About Retail and Wholesale Bakeries

24
2
Joined Jul 3, 2019
Can someone help help me clarify the definition of these two

People said to me Retail bakeries sell directly to customers like in groceries and cafes, but the wholesale bakeries was mentioned to me are also like products sold to other businesses like in cafes restaurant etc. So does this mean that wholesale bakeries are just making the exact same products just like what the products in retails have (Breads, cakes etc)?

And also does it also mean that in wholesale bakeries, those(the products) are assigned by customers for them to make and has already set a fixed plan or contract to buy that specific product even before its made while the retail bakery's products are being prepared even before the customers choses and plans to buy those products ?

Please correct me if im wrong if what i have written above is wrong,

I would appreciate any answer for this :)
 
5,401
858
Joined Oct 10, 2005
Retail is selling individual items to individual customers. That said, few, if any bakeries can survive on retail alone. You need the wholesale accounts to keep the momentum going and money coming in.

As far as wholesale, Basically, anything goes...

If you look at the monster bakeries-the ones that deliver pallets of bread per day to supermarkets, they might have a contract where they basically rent shelf space with the bakery or an agent of the bakery stocking the shelves rotating and removing past date items. Or an arrangement can be made where the store buys the product, but the bakery has to buy back expired product @ x cents /$.

With frozen items.or items with a long shelf life, the store might buy them outright, but no guarantees or contract that the store will continue to order—rule of thumb says if the store can sell the product with their chosen mark-up, they’ll continue to order.

Getting locked into a contract can be suicidal for many bakeries—I.e. Costco or the like, so many caveats all against the supplier.

Hope this helps
 
24
2
Joined Jul 3, 2019
Retail is selling individual items to individual customers. That said, few, if any bakeries can survive on retail alone. You need the wholesale accounts to keep the momentum going and money coming in.

As far as wholesale, Basically, anything goes...

If you look at the monster bakeries-the ones that deliver pallets of bread per day to supermarkets, they might have a contract where they basically rent shelf space with the bakery or an agent of the bakery stocking the shelves rotating and removing past date items. Or an arrangement can be made where the store buys the product, but the bakery has to buy back expired product @ x cents /$.

With frozen items.or items with a long shelf life, the store might buy them outright, but no guarantees or contract that the store will continue to order—rule of thumb says if the store can sell the product with their chosen mark-up, they’ll continue to order.

Getting locked into a contract can be suicidal for many bakeries—I.e. Costco or the like, so many caveats all against the supplier.

Hope this helps

Thank you so much for the answer this helps a ton!
 
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