I firmly believe that this is the right move for my business. I've been building my business for two years, building a client base, expanding my menu and waiting for the right time. I also know that if there is ANY business in my area to have my products in, it's this one and I've been blessed to make this connection. My only weakness right now is that I'm not a business savvy person because I was a music teacher in my past life. Now, I know how to SELL a product but in this situation, I'm nervous to talk numbers etc because I've not done this before. That's why I'm asking for advice. :)
In the past I was selling cupcakes for $1.50 a piece or $15/dozen (1.25 each)
filled or fondant covered cupcakes are $2.00 a piece or $21/doz (1.75)
This so FAR had worked for us. Recently at an event, I raised the price of one cupcake to $1.75 and keeping with the $15/dozen
I bake out of the home (and yes, have all the proper legal things worked out) but with this deal, I MAY look at renting out a kitchen at my church etc if the volume is going to be huge. I don't think it will be huge at first as he is going to want to make sure that his customers enjoy the dessert as well.
The average cost for us to make 2 doz cupcakes is approx $5.40 (give or take a little depending on flavor/ingredients) so we're profiting on average about $22 per 2 dozen cupcakes.
So when these types of meetings take place like I'm going to have soon, is it normal to sell to a business for less than my $1.50 price? Do I really split that price in half (as someone above mentioned...the wholesale price?) I just want to know what the norm is so I have an idea of what to do so I don't go into a meeting looking like a complete idiot.
I really appreciate all of your help! I need to make this business work for me and my family and I WANT to make it work. Life is completely different for me now from what it was 3 years ago but I know God has a plan for me and I'm rolling with it in good faith. Excited to see what happens! I appreciate your support soo much!