Becoming a "preferred vendor"- "Kickbacks" or what?

Hey everyone,

I run a small pastry & dessert catering business (Northern NJ) and am now going into meetings with NYC/NJ venues (nightclubs, event spaces, restaurants, etc) that are offering to recommend my business to their clients that are looking for custom cakes, sweets, etc

These venues do NOT have their own pastry chef(s) and receive many requests for dessert caterers/custom cake shops from the people planning to have their event at their venue(s).

I have some initial meetings scheduled to bring samples and discuss the possibility of becoming a vendor that they recommend, and I want to be prepared;

What kind of "deal" or other business agreement should I prepared to offer, should they ask?

I'm sure that they are not simply going to agree to throw business my way with no reciprocation.

I've had my business for about 2 years, but this type of situation is a new one, and I'd like to make it happen.

Any thoughts, advice? Do any of you have experience with this?

Thanks so much!

Paige

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Permalink Reply by Betty on February 9, 2015 at 10:20pm

I was one of about 5 on a "preferred vendor" list at one of the local country clubs here in my area for a number of years until they hired there own pastry chef.No kick backs. If it was a wedding cake they gave my name & number to the client, I dealt directly with them not the club.They just wanted to be sure the club member got a "good" cake. The club ordered
small cakes for birthdays etc. & the club paid my price to me but I think they in turn charged the club member a little more. Which was OK with me as long as I got my $.
A large Hotel here wanted me to be on there preferred vendor list but wanted me to CUT my price just for the honor of being on the list. I told them No, they could add something to my price, but I wasn't going to cut mine. Needless to say that didn't work out.I might have been wrong but I didn't really need the business anyway.

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Permalink Reply by Sandra Smiley on February 9, 2015 at 10:36pm

Smart lady, Betty! You are too good and it is totally unnecessary for you to cut your prices. Their loss :o)

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Permalink Reply by Betty on February 9, 2015 at 10:45pm

Thanks Sandra... Maybe they should have paid ME to be on there list, LOL...that might have worked out. Some of the florists here did cut there prices to the hotel to get business but I never liked the idea.

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Permalink Reply by Paige on February 10, 2015 at 1:00pm

Thanks for taking the time to share you experience and advice, I really appreciate it-

The general consensus of all the professionals that I've consulted seems to be in agreement regarding kickbacks, discounts, etc.

I'm so glad that I asked and you're all terrific to offer your input!

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Permalink Reply by Katy Nott on February 11, 2015 at 6:22am

Paige, I agree with what Betty says. I am in the UK, so things may work differently here. But basically, if you are good enough, you should be put on their preferred supplier list without any kickback. At the end of the day, the venue want the business from the client and if they can refer to a reliable baker, it will add kudos to their selling process. A good cake from you, referred by them. will only do them good and enhance their reputation.

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Permalink Reply by Paige on February 11, 2015 at 9:26am

Thanks, Katy- Input and advice from all over is wonderful and appreciated. Thanks from New Jersey :)

Becoming a "preferred vendor"- "Kickbacks" or what?

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