Selling Wholesale and Getting Paid
I am getting ready to sell cakepops in a local grocery. I have the permit. So, that's not an issue. What I'm not sure of is how to structure the sale. We are just talking about maybe 50 pops at a time every couple weeks. But, I'm not sure if I should get up front or when I go to replenish, do I give them a bill based on what was sold? Obviously, I'd prefer to get paid up front. But, if they don't sell I don't want them to be stuck with them when they start to go bad. Thoughts?
Replies to This Discussion
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Permalink Reply by Sandra Smiley on
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In my opinion, you should definitely get paid up front when you deliver the cake pops. It is their responsibility to sell the product the same as with any other item they carry in their store, not yours to be sure they do not get stuck with stale cake pops. Selling cake pops wholesale is your business, selling cake pops retail is theirs. Good luck!
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Permalink Reply by Kentastic Cakes on
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True. But, most of their products they are getting an invoice and at least 15 days to pay. Companies like Hostess, etc exchange out the older product and give credit.
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Permalink Reply by Katy Nott on
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If you are selling wholesale, then I would say you need to have a contract with them that states they have X amount of time to pay. But they must pay for all the goods, not just what they sell. So if 15 days is the norm, then make it that. I would say it's unusual to get paid up front in this day and age, everything is on credit.
So deliver your pops, given them a bill that clearly states 'payment due by'. Whether they sell or not is up to them.
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Permalink Reply by Goreti on
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I can tell what I have seen happen in my local groceries stores. I have been there when they are accepting delivery of baked goods from area bakeries. Every single one got paid when they delivered. They would hand the invoice and received payment.
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You are not competing with Hostess! Whole different ball game. You are supplying couture, handmade goodies and the folks who will buy your pops probably do not ever buy Twinkies.
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In the spirit of full disclosure, the store is owned by a friend who is doing me a favor by letting me sell at his butcher shop. His typical clientel probably lives on Twinkies.
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