BaldDaddys

Hi Eileen, No.. up until a few months ago baking was simply a hobby, whipping things up for family and friends. I am preparing to launch an online bakery this week. While I won't rule it out... at this point I don't have much interest in opening a retail storefront due to the crazy hours involved. I already had an 80 hour a week job in my previous career. Ideally, I would prefer to sell through coffee shops, restaurants, etc, and directly to consumers through our online offering. I will have to give consideration to the pricing. I know that some companies, via their wholesale terms and conditions, state that resellers are not allowed to advertise a price below established levels. Thanks again for all of your insight... I guess the 50% markup that occurs in apparel transcends over to baked goods as well. Eric

Hi Eileen, Thank you for that information. I am right at that 20% for food costs so I guess my retail price is inline with the industry standards. My dilemma lies in the selling of the cakes at wholesale. Since I do not/have never run a coffee shop, I am in the dark about typical margins. As I mentioned in my previous post, I do know that with apparel, retailers have a 50% - 60% margin. Is that the same for the food business? Thanks again!

Hi Kerry, Flow Wrappers are how your traditional candy bars and snack cakes are packed. Please follow this link for an example: Biscotti Wrapper Granted this is one example from one manufacturer.

Good afternoon, I have a request from a local coffee shop who wants to carry our line of single serving size crumb cakes. Not ever selling wholesale before I am not quite sure how to price it. For argument sake, one of our cakes retails for $2.25, while cost to produce is around $.65. I know in apparel the retail mark-up is anywhere 50% - 60%. Does anyone have an idea what the wholesale to retail mark-up would be in a bakery? I was thinking in the neighborhood of $1.30 - $1.50. Many thanks for any insight. EDIT: I should also say that up until about 3 months ago baking was a hobby, I am just now starting to sell my products so I have only minimal retail bakery knowledge.

I have been researching this as well for our line of crumb cakes. I have found that flow wrappers will do the job we need. As for cost, I have seen used machines for as little as $2500. Check out this link for examples: Used Flow Wrapper I hope this helps. Eric

Good day to all of you.. while I have been appreciating all of your insight for a while now I figured this is a great topic for my first post. For those of you selling on both a wholesale and retail level, is there any "rule" regarding margins? I know in the apparel industry, it is pretty much standard that the customer will pay double what the store paid for it. A pair of sandals cost you $18, the store paid $9. So, for example, I am selling a 4oz Crumb Cake for $2.75 retail, what would you charge a local coffee shop who wants to carry your product. I know, quantity means a lot. Just looking for some insight/prior experience. Many thanks.