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Commissions & Event Planners

post #1 of 28
8/21/12 at 2:03pm
Thread Starter 
I need some advice. Here's the situation.

Event Planner brings the clients.

I conduct tastings on my dime but make them in Event Planners licensed kitchen.

I work in Event Planner's licensed kitchen. I make the wedding cakes. I pay for all the ingredients. I deliver the cakes (no charge).

All cakes are priced by the slice. Minimum is $3.50.

Planner get $1.50, I get $2.50. If there is any upccharge it is split 50/50.

Yes, I realize this is a ludicrous proposition. But my question is, if I am working in "free" space what is reasonable/customary to negotiate the commission to be?

On a side note, I will be paying yearly to use the licensed kitchen (Cottage Food Act not active in my county) and Event Planner would charge me kitchen rental when working on my own cakes for my own company which I am organizing.

Also, I am a professional pastry chef, not necessarily a cake decorator. As pastry chef I did much more and so I did not focuse on wedding cakes (which is what I would be doing now on my own). Therefore, I don't have tons of pictures because I never took them.
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post #2 of 28
8/21/12 at 3:09pm
I want to make sure I understand. Are you paying a commission AND paying rent. I would NOT be doing both.
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post #3 of 28
8/21/12 at 3:14pm
Thread Starter 
Quote:
Originally Posted by QTCakes1

I want to make sure I understand. Are you paying a commission AND paying rent. I would NOT be doing both.



I pay rent only when working on product for MY business.
No rent when working on cake for event planner.
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post #4 of 28
8/21/12 at 3:20pm
That is a huge commission you'll be paying the event planner. You would probably be better off operating as an entirely separate business entity and just paying rent, reputable event planners don't ask for referral fees or commissions.
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Recent Articles: The Magic Pricing Formula • Copyright Law
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post #5 of 28
8/21/12 at 3:37pm
$1.50 + 2.50 = $4.00, not $3.50, so I'm not sure about the percentages, but the commission would be 30-40%. As Jason said, that's HUGE.

I hope I die before "your" is the official contraction of "you are."

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I hope I die before "your" is the official contraction of "you are."

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post #6 of 28
8/21/12 at 3:44pm
Save your money - let your work speak for itself

A GOOD Event Planner should seek out the BEST for their client - if you happen to 'fit the bill' it costs you nothing

Sometimes I think I should just keep my opinions to myself,  but someone has got to be the voice of reason 

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The BEST chocolate mudcake recipe
http://cakecentral.com/recipe/pams-chocolate-mudcake

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Sometimes I think I should just keep my opinions to myself,  but someone has got to be the voice of reason 

www.facebook.com/applegum

The BEST chocolate mudcake recipe
http://cakecentral.com/recipe/pams-chocolate-mudcake

Misc 3D Cakes
(1 photos)
  
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post #7 of 28
8/21/12 at 3:50pm
I would only pay rent. I would NEVER give a planner a commission off cake customers she brought me, ever. Like mentioned above, a planner's job is to find the best vendor to her customerd. Not to mention she gets paid by her customer!
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post #8 of 28
8/21/12 at 3:50pm
I would only pay rent. I would NEVER give a planner a commission off cake customers she brought me, ever. Like mentioned above, a planner's job is to find the best vendor to her customerd. Not to mention she gets paid by her customer!
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post #9 of 28
8/21/12 at 7:23pm
Thread Starter 
I went back to their website. They advertise themselves as a full catering company, but also supply a whole lot of other stuff - maybe that's where I thought they were an event planning company.

Anyhow, how do cake designers charge if working under a caterer? Do they normally pay for their own ingredients and deliver the cake as well?
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post #10 of 28
8/21/12 at 7:29pm
I don't understand what you mean by 'working under a caterer'

If the caterer just commissions (hires) you to make the cake then you just quote as normal and make the cake and deliver it AND handle ALL communication with the client - ie paid independently than the caterer and into YOUR account

If you are working for the caterer in another capacity and then they ask you to make the cake - then I guess you are already working for wages and this is just another aspect of your job - you would need to set in place some sort of agreed 'work' guidelines - eg IF you think your cake work should be paid more than your current job - IF you are employed by the caterer then all your expenses should be met by them and you only get wages

Sometimes I think I should just keep my opinions to myself,  but someone has got to be the voice of reason 

www.facebook.com/applegum

The BEST chocolate mudcake recipe
http://cakecentral.com/recipe/pams-chocolate-mudcake

Misc 3D Cakes
(1 photos)
  
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Sometimes I think I should just keep my opinions to myself,  but someone has got to be the voice of reason 

www.facebook.com/applegum

The BEST chocolate mudcake recipe
http://cakecentral.com/recipe/pams-chocolate-mudcake

Misc 3D Cakes
(1 photos)
  
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post #11 of 28
8/21/12 at 7:40pm
Thread Starter 
Quote:
Originally Posted by ApplegumPam

I don't understand what you mean by 'working under a caterer'



From what this person was proposing they would not be paying me wages, I would get about 60% of whatever the wedding cake cost but I also have to pay for the ingredients, deliver it plus the gas and mileage. Ludicrous, I know.

I was just wondering what people normally negotiate when doing wedding cakes for a caterer if they are not a "full time employee". At the end of the year a 1099 form would be issued to me for monies received.
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post #12 of 28
8/21/12 at 7:57pm
Wow, You are being taken advantage of-big time. There is no way that I am going to give any one a percentage of my money! NO WAY! They evidently are not a full service catering company if they do not provide wedding cakes.
If you can only produce cakes by using thier kitchen, then they saw you coming.
I have worked with caterers, they send the customer to me and I send them customers. There has never been any money exchanged-fees whatever.
You should try to re-negotiate and rent only. When you figure out your profit, the caterer is going to be the winner in this deal.
Making life sweet!

Lindas Just Desserts

Inspected and licensed commercial kitchen
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Making life sweet!

Lindas Just Desserts

Inspected and licensed commercial kitchen
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post #13 of 28
8/21/12 at 8:02pm
I am in Australia so not familiar with the form you have quoted.

It sounds like a 'statement of income'

I don't think I would work under this system - unless it is going to give you work that you wouldn't/couldn't normally get on your own. WHY should a caterer get such a large chunk just for referring work to you ... but guess what? - somebody will be rushing to jump your spot - no matter how bad the situation sounds - some people are prepared to work for peanuts (and most don't even know they are doing it )

Sometimes I think I should just keep my opinions to myself,  but someone has got to be the voice of reason 

www.facebook.com/applegum

The BEST chocolate mudcake recipe
http://cakecentral.com/recipe/pams-chocolate-mudcake

Misc 3D Cakes
(1 photos)
  
Reply

Sometimes I think I should just keep my opinions to myself,  but someone has got to be the voice of reason 

www.facebook.com/applegum

The BEST chocolate mudcake recipe
http://cakecentral.com/recipe/pams-chocolate-mudcake

Misc 3D Cakes
(1 photos)
  
Reply
post #14 of 28
8/21/12 at 10:27pm
Quote:
Originally Posted by 61999

From what this person was proposing they would not be paying me wages, I would get about 60% of whatever the wedding cake cost but I also have to pay for the ingredients, deliver it plus the gas and mileage. Ludicrous, I know.

I was just wondering what people normally negotiate when doing wedding cakes for a caterer if they are not a "full time employee". At the end of the year a 1099 form would be issued to me for monies received.



They are attempting to hire you as a subcontractor. There are several threads about subcontracted services... this one might be helpful:
http://cakecentral.com/modules.php?name=Forums&file=viewtopic&t=638033&highlight=subcontracted

BTW, when I made wedding cakes for caterers they were never paid a fee or commission. Everything was done by me, I was referred by them.
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Make tip #127D (giant rose tip) Ruffle cake,
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HOW TO:
Make tip #127D (giant rose tip) Ruffle cake,
Write with icing,
Make buttercream roses on a stick:
http://s984.photobucket.com/albums/ae322/Unlimited1cakes/
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post #15 of 28
8/21/12 at 10:29pm
Duplicate post.
HOW TO:
Make tip #127D (giant rose tip) Ruffle cake,
Write with icing,
Make buttercream roses on a stick:
http://s984.photobucket.com/albums/ae322/Unlimited1cakes/
Reply
HOW TO:
Make tip #127D (giant rose tip) Ruffle cake,
Write with icing,
Make buttercream roses on a stick:
http://s984.photobucket.com/albums/ae322/Unlimited1cakes/
Reply
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