Now everybody knows that business is about profits. If you are not making profits from your business you will fail when actually the reason for starting the business is that you saw that opportunity, took it to make some money. The way you will charge your wholesale cakes will matter a lot. The right pricing for your caking means that first, it is competitive and that it is profitable. Remember you are also putting a lot of your money and resources into the business in order to generate the right sales. The way you priced your retail cakes might have worked but here everything needs to change because a lot is at stake from the salaries to pay your time to the money you spend on ingredients, baking equipment and packaging.
Foremost, before you actually price, there are key things you should give attention to. These items should actually be part of the calculations that lead to the pricing of your wholesale cakes. They are actually the mistakes people make and even ignore because they matter.
Do not estimate the money spent on materials. Usually, we do not bake all cakes at the same time. There is the ordering, the shopping for ingredients and the baking. In this context, there is the time spent, every amount spent on shopping and the expertise used in baking the cake.
Do not forget the overheads. You might be right including costs of time, ingredients, materials and equipment but what about the water bills, the electricity, the marketing, and the cleaning material. They are costs incurred on the business having them included in your calculations is quite important in realizing reasonable profits that not only please you but are also competitive in the market.
Avoid many business favours. After all the talk about profits and capital protection, there is the heart. Your loved ones getting discounts is a direct kill to your business. Standard charges for all the products by any customers will shield your business at tough times.
The big question is how you should actually price your wholesale cakes. The answer is as below:
Track costs and time. I advise you use an excel worksheet or a spreadsheet. Every time you leave the workstation for a purchase, a client talk, an order discussion, ingredients and overheads and always keep a record. Record all that you have spent on everything as pertains to the business for easy inclusion in the pricing.
Set a rate per time spent on the job, something like an hourly rate. You have worked in the field for a while, gone for training and gained experience. Your charging should not be the same as the one doing it for fun. Set a fair hourly rate, it is a symbol of professionalism and credibility in business. Customers will actually take your business seriously. Such should be the basis for your pricing.
Price competitively Having done all your calculations, you will notice that the prices are actually on a given range. Some are exaggerated and I will not be surprised. Pricing competitively means not going too low and not going too high. Making yourself good profits and making your customers happy guided by the calculated expectations of your market research.
The above should provide you with a relatively safe landing as you price your wholesale vegan cakes. They should enable you to make profits and beat the competition. Price wisely and build a successful cake business.