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Consigning pastries/cakes/cupcakes

post #1 of 3
1/16/12 at 11:07am
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Ok, so I feel like this is a good opportunity but I'm not sure how this works, so any and all feed back and info is GREATLY appreciated.

A local coffee shop contacted me and wants to sell my cupcakes in their shop...It's a busy coffee shop, so that is a lot of potential clients.

My only question is, what do I charge? Do I do wholesale prices? I know what I usually charge when I'm selling my cupcakes to people...but if I am consigning cupcakes to them, how does this work?

YES I am legal icon_surprised.gif)
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post #2 of 3
1/16/12 at 11:41am
If you have your own licensed and inspected you should be fine, but if you are operating under your state's cottage food law you should check to make sure they allow wholesale.

As for what to charge...how much of a profit are you currently making on your retail sales, and how high a price can you set that would still maintain enough demand for your products? This information combined with the coffee shop's retail markup will determine how much to charge wholesale (and if it's even a good idea to pursue this business in the first place).
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An experimental blog with new content every Tuesday!

Recent Articles: The Magic Pricing Formula • Copyright Law
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post #3 of 3
1/16/12 at 1:28pm
Quote:
Originally Posted by Paperfishies

...but if I am consigning cupcakes to them, how does this work?



I'm not sure what you mean by "consigning." Selling on consignment means that if a product or item does not sell, the business (manufacturer) takes it back. Are you expected to take returns?
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