Selling and marketing
Cake Jars Wholesale: Case Size, Cost per Jar, and Margin
What a case of cake jars really costs and how to price each jar so your labor and overhead are covered.
On this page
- What does a cake jars wholesale order include?
- How do you compare two wholesale quotes?
- What should one jar cost you to make?
- What belongs in overhead per jar?
- Worked example: 24 jars from a 2 case order
- How do you keep the first case from tying up cash?
- What mistakes cost you money on a wholesale order?
- What should you ask before you order cases?
- How do you price a jar so the case pays?
What to remember
- A wholesale order is priced by the case, so check the case count first.
- The smallest order at Cakes By The Jar is 24 jars.
- Cost ingredients, labor, and overhead before you add margin.
- Buy the smallest case that will sell before you reorder.
- Compare the total first order, not just the jar price.
The case size sets your first decision. A cake jars wholesale order ties up cash in 24 jars before you sell one, so you need a price that pays you back on the first case. Start with the jar, then work backward to the case.
What does a cake jars wholesale order include?
A wholesale order is priced by the case, not by the jar. The same supplier sets a 2 case minimum with 12 jars per case, according to its wholesale page. That means your first order is 24 jars, and your cash is tied up until they sell.
Ask three questions before you compare jar prices. What is the case count. What is the minimum. What does the jar include, such as lid, label, or sleeve. A lower jar price with a 4 case minimum can cost more cash up front than a higher jar price with a 2 case minimum.
How do you compare two wholesale quotes?
Compare the total first order, not the jar price alone. Multiply the case count by the minimum cases, then add any packaging the jar does not include. A low jar price with a 4 case minimum can tie up more cash. A higher jar price with a 2 case minimum may cost less up front.
Ask what the jar includes, such as a lid, label, or sleeve. If the quote leaves those out, add them to your cost sheet. Then compare the two totals before you choose a supplier.
What should one jar cost you to make?
Cost the jar, not the case. Start with the ingredients in one jar, then add the labor to bake, fill, seal, and label it. Add a share of your monthly overhead, such as your Brevl shop at $20 a month, insurance, and power. The sum is your cost per jar before profit.
Cost one jar
List ingredients, the jar and lid, the label, and the minutes of labor for one jar.
Add overhead per jar
Take your monthly costs, including your $20 Brevl shop, and divide by the jars you expect to sell.
Set a price
Add your margin to the cost per jar. Check that the case price still sells to your buyer.
Check the minimum
Confirm the case count and minimum order before you commit cash.
Test one order
Sell the first 24 jars before you buy a second case.
What belongs in overhead per jar?
Overhead is the cost of staying open, not the cost of one jar. Your Brevl shop at $20 a month, insurance, and power are examples from this page. Add those monthly costs, then divide by the jars you expect to sell that month.
If you sell 24 jars, a $20 monthly cost adds about $0.83 to each jar. If you sell 48 jars, the same $20 adds about $0.42 to each jar. The overhead per jar falls as your volume rises, so your price can change with your sales.
Worked example: 24 jars from a 2 case order
Your minimum order is 24 jars. Suppose ingredients cost $1.00 a jar and you pay yourself $0.50 a jar for labor. Your Brevl shop is $20 a month. If this is your only order that month, overhead is about $0.83 a jar.
Add the three lines. Ingredients are $24.00 for the case. Labor is $12.00. Overhead is $20.00. Your total cost is $55.92, or about $2.33 a jar.
At $4.00 a jar, the case brings in $96.00. Subtract the $55.92 cost, and your margin after ingredients, labor, and overhead is $40.08. That is about $1.67 a jar.
How do you keep the first case from tying up cash?
The first case ties up cash in 24 jars before you sell one. Price each jar to pay back the case on the first order. Sell the first 24 jars before you buy a second case.
Start with the smallest order the supplier allows. If 2 cases sell, reorder. If they do not, you have not tied up cash in 4 cases. That keeps your cash moving.
What mistakes cost you money on a wholesale order?
The first mistake is buying cases before you know your state rules. A wholesale bakery license readiness guide lists six requirements, including a commercial kitchen, product liability insurance, written SOPs, and FDA labels. Check those before you spend on jars.
The second mistake is pricing from ingredients alone. The jar, lid, label, and your time are part of the cost. The third is buying 4 cases when 2 cases would sell. Start with the smallest order the supplier allows, then reorder when it sells.
What should you ask before you order cases?
Ask for the case count and the minimum order. Ask what the jar includes, such as lid, label, or sleeve. Ask whether the supplier has a smaller case or a mixed case if you want to test flavors.
Compare the total first order, not the jar price. A low jar price with a 4 case minimum can cost more cash up front. A higher jar price with a 2 case minimum may leave more cash free.
How do you price a jar so the case pays?
Set your price from the cost per jar, then check it against what your buyers pay. If the price is too high, shrink the jar or simplify the filling before you cut your own pay. The how to price cake jars guide walks through the math.
Packaging adds a cost to every jar. A cake packaging wholesale order adds labels, boxes, and tape to each jar. Price those in before you quote a case. The same goes for cake ingredients wholesale, where you should check the case size before you order.
When you are ready to sell, the how to sell cake jars guide covers first orders and buyers. For the full set of selling guides, see the selling guides hub.
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Common questions
What is the smallest cake jars wholesale order?
At the same supplier, the minimum is 2 cases with 12 jars per case, so 24 jars. Ask any supplier for the case count and the minimum before you compare prices. A low jar price can still mean a large cash outlay on the first order.
Do I need a license to buy cake jars wholesale?
The same license readiness guide lists six requirements, including a commercial kitchen, product liability insurance, written SOPs, and FDA labels. Rules vary by state. Check with your state agriculture or health department before you order cases, because the answer changes what you can sell and where.
How do I price a cake jar?
Add the ingredients in one jar, the labor to fill and seal it, and a share of your monthly overhead. Then add your margin. If the total is above what your buyers pay, shrink the jar or simplify the filling before you cut your own pay.
Should I buy jars or bake from a mix?
That depends on your buyers and your time. Cost both ways with the same labor and overhead. A mix can save time, but the jar, label, and your hours still count. Pick the one that leaves a margin after all three, not the one with the lowest ingredient line.
Can I sell cake jars from home?
Your state cottage food rules decide that. Some allow low risk baked goods sold directly, and some require a commercial kitchen for wholesale. The same guide names a commercial kitchen and product liability insurance among six common requirements. Confirm your state rules before you take a wholesale order.
Sources
General information, not legal, tax, or financial advice. Check your state rules and talk to a licensed professional about licensing and insurance.