Selling products wholesale can be a great way to grow your business, but you have to know the rules. If you are working under a cottage food law, find out if you’re allowed to sell wholesale. If you bake in a commercial kitchen with a full license, you have no sales restrictions.
Most people equate wholesale with volume but this is not always applicable. Wholesale is selling products to a business that resells those goods. If you sell your baked goods this way, that business is reaching a market you may not be reaching. So while you give the business a discount for, say, two dozen cookies, you make one sale and don’t have to stand at the farmers’ market selling one cookie to each of twenty four customers over the course of the morning.
Cakes and pies are prime products for sale to restaurants and eateries. Look at the items you already make and talk with a potential account about baking them a signature product – a cake or pie that no other restaurant can purchase. Price your products and give the business a discount. Typically, perishable products are discounted differently than shelf-stable merchandise. I offer a 25% discount from my retail price. Don’t let anyone pressure you into lowering your price. Not all of your products may be worthwhile for you to sell wholesale. Decide which ones you will offer and make a wholesale list for customers.
Home-Based Baking at its Best! I began my baking career under New York’s cottage food law, where wholesale is allowed. During the warmer months I sold retail at the local farmers’ market and wholesale year round to several businesses. My income supported myself and young daughter. Best of luck to you!