You have done well at raising enough for your business; all is set from the bakery, the staff, the counter, the packaging, the marketing and the pricing. There is just one major cue, profit generation. Who does not want profits? I know you have gone through a lot and I am just going to save you the frustration. How do you run a profitable wholesale cake business?
Business needs to meet customer needs
Business 101, all that is business is the need to meet your customers’ desires, wants and needs. Going wholesale is the first major decision you ever made. Usually, we start with a local gap or a local need. There are places I know that hugely purchase cupcakes, some people cannot cross a weak without a black forest. Whatever you create something you can sell. Going wholesale also means you do not limit yourself to the retail customers, targeting retailers can be a huge plus to your business. Retailers know the customers better; they will tell you what the customers say about your product. You will also know what the customers want and easily capitalize on that.
Make a good product
All the marketing, the customer service, the ingredients, the team can be good but an imperfect product is not good for business. The market is full of trends; the customers themselves are trend-sensitive. Today people are talking about the black forest in my town; I believe that is the trend. If you are selling such a product, the customers already know its appearance, its taste, its perfections and imperfections. If you create something they cannot relate to, they will walk away. Perfect on each product that your market desire and you will have the profitable business you are chasing.
A good employer always makes profits
I can think of big corporations and I cannot stop thinking about the care they have for their employees. We are human beings and making someone feel great is by appreciating what they do. You might have a good product, a good market, a good strategy to get sales but if your team is not happy, your customers will not be happy. At the counter, there needs to be someone happy to serve the customers, at the order place there needs to be a good and happy voice to pick the calls, at the delivery truck, the driver needs to be happy with this job. All these streams downwards to good sales. Pay your team right and your customers will buy and pay right.
Always buy bulk
This is a wholesale cake business, buying so much for less than less for much is the premise. I would advise that you should do good calculations of the stock required for various orders at a given time to achieve a good profit margin. Not buying bulk reduces the profit margins; you do not want to find yourself getting the same amount you spent on the costs.
Social media is important
The good thing about the food business is the photo taking part. Once a project is over, take the photo, share on your business Facebook page or Pinterest. People will comment and if possible have the customer leave a review after some time. This way the market gains confidence in your products and before you know it, you are fully reserved for the next half a year.
All the above look easy but have you tried them. Just saying if you want to make the best out of your wholesale cake business, you should start.