Going through the pain barrier of sharing your margin? I am being dragged into the world of bigger business by a number of retailers and I am struggling with the concept of margin vs output vs growth.
I make all my chocolates by hand with natural ingredients and therefore have short shelf life certificates, which suits the customers I deal with, who are the end users. However I'm not sure how the business moves into supplying the farm shops that are keen to sell my chocolates. Many want to sell chocolates flavoured with their products - apple/marc de champ/lavender/chilli. Anyone any experience in this step? Surely hand producers should steer clear of retailers that want to take 40-50%?
January 4, 2009
They do the selling for you - sounds like you should be giving it a try! If you price wholesale so that you are still making a decent profit margin - and can cope with the extra demand without too many extra outgoings. Why not try 2 or 3 first and keep checking your figures before taking on any more?
Sounds like a plan, and a no-brainer I suppose. I am thinking I should put together a range of less complex recipes for wholesale that I can produce a little faster.
I am surrounded by business friends that say sell at full-fat margin only in the first year, but as you say, if they do the selling for me, I can but try it out...
August 25, 2008
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