Cafe owners

(18 Posts)
k2togm1 Wed 05-Jun-13 08:10:30

I bake things, recently a cafe owner contacted me and I have him some samples, he wants to stock my product!grin
Now I have to tell him how much it is wholesale, I was planing on adding 70-80% to my costs, and he can then, due to location, easy add 100%+ as his retail price.
I have only sold at markets so far, so my questions are:
-would you pay £1 or max £1.20 for a single individual baked product which you could then sell for £2.50 min?
-would you be ok with having to buy minimum 20 at a time? (A tray, any less ill be loosing money and gaining weight)
-what else would you expect a supplier do?
Thanks!

k2togm1 Wed 05-Jun-13 13:34:55

Bumping as have to send prices tonightsmile

k2togm1 Wed 05-Jun-13 17:32:45

Inpatient I know, sorry.

Onesleeptillwembley Wed 05-Jun-13 17:39:19

A minimum would be the norm. Cannot possibly comment on the price as no idea what the product is. Delivery, storage, etc could affect price. Ask him his margins.

k2togm1 Wed 05-Jun-13 18:25:12

Didn't want to give all details! I thought it wouldn't matter which product it is as you have the retail price, was just kind of asking if that is an acceptable margin for a cafe.
So could I just ask him about his margins? Wonder if it is too late now as I told him if email prices tonight...

k2togm1 Fri 14-Jun-13 19:14:51

Could I ask more questions?
I though food margins were around 80%, but this particular guy wants to make more than 100% profit margin (gross).
So, how much do cafes out there pay for cake?

ImperialBlether England Sun 16-Jun-13 18:56:10

Not sure if you're still here, OP. Could you give us a similar-but-different example?

k2togm1 Sun 16-Jun-13 20:47:27

Yes!
Flapjacks. They cost to make from 31p to 50p depending on different ingredients (some with nuts, dried cherries, etc). Just ingredients. Adding everything else their cost turns out around 65p if I pay myself the minimum wage. Aibu to ask £1.00 for them wholesale?
Local cafes sell them on for 2.50 - 2.80. And mine are ten times better, taste of the ingredients and not just sugar.
Ask if more details are needed!

ImperialBlether England Sun 16-Jun-13 21:08:00

I'm not sure but I would think you would offer them at a price that is above what you'd accept, then you negotiate. Isn't that how it's done? Don't forget to include everything in though - electricity/gas, your time, including washing up and shopping time, etc.

I make a chocolate fudge cake, for example, that gets about 12-15 good slices. I make it sometimes for work, if they're raising money for charity. I worked it out that it cost about £5 to make (that's buying the ingredients at a supermarket.) It takes me about an hour to make and decorate it (taking out the time it takes to cook it.) Perhaps not an hour, perhaps 45 minutes. I could do two in an hour. I wouldn't be happy selling it for under £10 - even then it would only be worth it if I made several as that would cut the time down.

The thing is, everyone knows home made food is expensive and time consuming - that's why nobody wants to make it themselves!

So I would say if I wanted £1 per portion, I'd ask for £1.30 per portion and haggle from there. Remember though that that 30p is going in someone's pocket, either yours or his.

ImperialBlether England Sun 16-Jun-13 21:10:08

There was a TV programme on recently where the man who started the Compare.com website was talking to people about changing their lives. He was talking about a cafe - he said they could make home made soup and home made bread for £1 per portion but sell at £5.99, so there was a big mark up. That was if they made it themselves, though. I'm not sure how big the mark up would be if you bought it off someone else as that's two lots of profits that are needed.

k2togm1 Sun 16-Jun-13 22:23:31

Thanks. Yes, I asked for 1.40, thinking if he sells it for 2.80 he's making 100% margin. He replied saying it needed to be less than £1. I said 1-1.10 was the lowest I could go (true, any less and it isn't worth my time, might as well be selling directly at markets were I can sell them for £2 a piece)
But the guy hasn't replied. A week, I guess he isn't interested or is waiting for me to get desperate and lower the price again. I won't.!grin
Yes it's tricky trying to be a middle person (well, a producer but not retailer), but cafes also have lots of overheads which I don't.

ImperialBlether England Mon 17-Jun-13 00:19:20

Why don't you go ahead and sell them at the market then? Do you think you would be able to make enough for a morning at a farmers' market?

k2togm1 Mon 17-Jun-13 18:01:49

Do you mean enough product? Yes I do it! I've been doing fairs and markets for 3 months regularly.
I just wanted something that didn't need me to be there, just make and deliver.

ImperialBlether England Mon 17-Jun-13 18:45:29

Oh sorry, I didn't realise you were already doing it. Just out of interest, how many items do you sell? I wouldn't know where to start, how much to bring with me!

k2togm1 Mon 17-Jun-13 22:54:50

It varies, depending on the weather as it were! For a fair where about 1000 people footfall I sold 120 pieces. For a much bigger one 240. For a street stall on a Sunday, 80.

If anyone out there owns a cafe or similar and could guide me as to what kind of price is realistic for a supplier to sell their pieces of cake (vague but accurate) that would be much appreciated!!

JustinBsMum Wed 19-Jun-13 20:52:06

Perhaps post on Chat or AIBU as they are busier threads.

usualsuspect Wed 19-Jun-13 21:00:11

He will have to take into account any waste, he won't be able to keep unsold flapjacks for long iyswim.

I work in a cafe, I don't own one

k2togm1 Thu 20-Jun-13 19:18:17

Good point usualsuspect. Thanks.
Might do a chat thread...

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