What to expect to charge for retail/wholesale?

3
0
Joined Mar 9, 2021
Hi all, I have a cookie delivery service and I'm getting ready to approach a few local coffee shops to ask if they'd like to carry my cookies, which are going for $19 for four. My bakery is in its infancy so this would help me get my name out and also increase my customer base. I'm just curious if anyone has pointers for me, as to how to approach local shops and what the going discount is that they expect. I want to be able to offer a reasonable discount and still be profitable. I use premium ingredients and organic when possible, so my fixed costs are expensive. I don't source from Sysco or even Costco. A 50% discount isn't profitable, but I'm not sure if a 25% discount would land me any contracts either. I think the suggested retail for the cookies could be $5-$6 each based on what some of these cafes are charging currently for their baked goods. Granted, some items are gluten free, but also about 1/3 the size of my cookies.

Your experience and advice is much appreciated.
 
458
151
Joined Feb 18, 2007
A cafe owner is going to need to see the demand for your product to know that 1) they can sell your goods and 2) they aren't going to take a loss on your product.

Off the top of my head:
Most places are looking for at least 20% off retail. You should consider how often you want to fulfill orders (what's your minimum order, how much lead time, what are payment terms), what happens if the cookies don't sell, how the cookies are packaged (are you allowing the cafe to repackage your product) and will you need ingredient/calorie etc labels in order to sell to the cafes?
 
235
64
Joined Dec 29, 2019
Hi all, I have a cookie delivery service and I'm getting ready to approach a few local coffee shops to ask if they'd like to carry my cookies, which are going for $19 for four. My bakery is in its infancy so this would help me get my name out and also increase my customer base. I'm just curious if anyone has pointers for me, as to how to approach local shops and what the going discount is that they expect. I want to be able to offer a reasonable discount and still be profitable. I use premium ingredients and organic when possible, so my fixed costs are expensive. I don't source from Sysco or even Costco. A 50% discount isn't profitable, but I'm not sure if a 25% discount would land me any contracts either. I think the suggested retail for the cookies could be $5-$6 each based on what some of these cafes are charging currently for their baked goods. Granted, some items are gluten free, but also about 1/3 the size of my cookies.

Your experience and advice is much appreciated.
Make a cookie you can wholesale for .75
They will get 1.25 retail and everyone is happy.
Wholesale relies on volume sales, no volume is no profit.
Sysco and costco are not bakery suppliers, they are expensive.
 
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Joined Mar 24, 2021
$19 for four cookies in a starter business? I guess it depends on where you're located, but those prices would definitely not fly here. O.O Where are you, if you don't mind me asking? Setting a price tag of $19 on four cookies, gluten free or not is going to be a pretty hard sell for anyone.
 
235
64
Joined Dec 29, 2019
$19 for four cookies in a starter business? I guess it depends on where you're located, but those prices would definitely not fly here. O.O Where are you, if you don't mind me asking? Setting a price tag of $19 on four cookies, gluten free or not is going to be a pretty hard sell for anyone.
Its unrealistic but folk in hollyweed are nuts, theres a buck to be made but its not transferable to commercial volume.

If you wanna live with the classes , do business with the masses.
If you do business with the classes you will always live with the masses.
 

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