Selling and marketing
Cake Wholesale Business: Price per Cake and Your Margin
How to price a cake for wholesale buyers and keep a real margin after labor and delivery.
On this page
- What a wholesale buyer wants from you
- Price one cake before you quote a case
- Set a minimum order and a delivery day
- Mistakes that cost you money
- How to get your first wholesale account
- What to track each week
- What belongs on your wholesale price sheet
- How to plan one delivery run
- When to raise a wholesale price
- How repeat orders change your baking day
What to remember
- Wholesale pays less per cake, so the size of the order has to carry the trip.
- Cost ingredients, packaging, your time, and delivery before you name a price.
- Set a minimum order in writing so a small order still pays you.
- Keep one price list and one delivery day for every buyer.
A cake wholesale business runs on repeat orders, not one off sales. You bake the same cakes on the same day for the same shops, and you get paid for the whole run instead of a single cake. The numbers have to work before you agree to anything.
What a wholesale buyer wants from you
A cafe or corner shop is not buying your decorating. They want a cake that looks the same every week, a price that does not move, and a delivery they can plan around. They also want an invoice, because their bookkeeper needs one.
That changes what you sell. A simple cake you can make in a big batch beats a showpiece you can only finish one at a time. If you want the wider picture on selling from home, the selling guides hub collects the pages on pricing, orders, and getting paid.
A buyer who orders every week needs to know the cake will be there. If you miss a delivery, they lose sales and you lose the account. That is why a short menu and a fixed day matter more than a wide choice.
Price one cake before you quote a case
Wholesale prices are lower than retail, so a small mistake per cake turns into a big one across a case. Build the price from the bottom up and do it once, properly. Then you can quote any buyer in a minute.
Cost the ingredients for one cake
Use what you actually paid, not the shelf price at the store. A wholesale bag or case lowers the cost of each cake, so update the number when you restock.
Add the packaging
Every cake needs a board, a box, and a label. Add the case or tray they travel in and divide it across the cakes in the run.
Pay yourself for the time
Time the mixing, baking, cooling, and finishing for one cake. Multiply those hours by the hourly rate you want to earn.
Spread delivery and overhead
Add gas and your driving time for the run. Then divide your monthly costs, like your shop fee and your phone, across the cakes you sell in a month.
Add your margin last
Margin is what is left after all four lines. If nothing is left, the price is wrong, not your effort.
Do this once for each cake on your short list. Then a new buyer only needs a size and a delivery day to get a price. You are not guessing at the counter or in the shop.
For example, one cake uses $6.00 of ingredients and $1.20 of packaging for a total of $7.20. Forty five minutes of work at $18 an hour adds $13.50 in labor to that cake. A twelve cake run costs $9.60 in gas and driving time, which is $0.80 a cake. Your shop costs $20 a month and you sell 40 cakes, so overhead is $0.50 a cake. The total cost for one cake is $22.00 before you add any margin. At a wholesale price of $30.00 you keep $8.00 a cake, which is about 27 percent. That margin is after ingredients, labor, delivery, and overhead are all paid. The same cake at $45.00 retail keeps $23.00 after the same costs.
Set a minimum order and a delivery day
Pick a minimum order and hold it. Twelve cakes is a workable floor for a home kitchen, because it covers the trip and the setup. If a shop wants four, sell them at your retail price or say no politely.
Then pick one delivery day a week and one route. Two drops on the same street cost you far less than two trips on two days. Boards and boxes bought in bulk keep the packaging line down, and cake drums wholesale breaks down what a case costs per cake.
If a shop is far from your route, either raise the price for that shop or skip the account. A long drive eats the margin you built into the cake. One delivery day a week keeps your baking and your driving on the same schedule.
Mistakes that cost you money
The first mistake is a verbal price. Write the price, the size, the delivery day, and the minimum order on one page and email it. The second is a buyer who adds two cakes to the order every week without paying for the extra trip. The third is buying packaging one box at a time.
A verbal price is easy to forget and hard to enforce. Write the price, the size, the delivery day, and the minimum order on one page and email it. Then both sides have the same number.
How to get your first wholesale account
Walk in with two cakes and a one page price sheet. Ask who places the orders, leave the sheet, and come back the same day next week. Small shops and coffee stands are easier to reach than big grocery chains, and they decide faster. How to market a cake business covers the free moves that get you in the door.
Start with the cakes you already make well. A short list of three cakes is easier to cost and easier to sell than a long menu. Cake ingredients wholesale shows how a case price changes the cost of one batch, which is the number your price sheet rests on.
Start with the cakes you already make well. A short list of three cakes is easier to cost and easier to sell than a long menu. That list also keeps your delivery day simple.
What to track each week
Track four numbers: cakes sold, cost per cake, money in, and money owed. If money owed keeps growing, you are funding your buyers. A simple sheet with those columns is enough, and cake pricing in Excel shows the columns that matter.
If money owed keeps growing, you are funding your buyers. Keep the first orders small and ask for a deposit on larger ones. Many small shops will pay on delivery if you ask.
What belongs on your wholesale price sheet
Your price sheet needs the cake name, the size, the price per cake, and the minimum order. Add your delivery day, your payment terms, and a note that prices can change with 30 days notice. Keep it to one page so a buyer can read it in a minute.
How to plan one delivery run
Pick one delivery day and one route that hits the same street or neighborhood. Two drops on the same street cost far less than two trips on two days. Add gas and your driving time to the cost of the run, then divide it across the cakes. If a shop is far away, raise the price for that shop or skip the account.
When to raise a wholesale price
Review your cost sheet when a case price changes or when gas goes up. Give buyers 30 days notice before a price change, in writing. A price that moves every month makes you hard to plan around. If a buyer will not accept the new price, you can keep them at retail or let the account go.
How repeat orders change your baking day
Wholesale runs on repeat orders, not one off sales. You bake the same cakes on the same day for the same shops. That lets you batch mixing, baking, and packaging into one block of time. A short menu of three cakes is easier to cost and easier to sell than a long menu.
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Common questions
How many cakes do I need to sell wholesale to make it worth it?
It depends on your minimum order and your delivery cost. Work out the number of cakes that covers one trip, then hold that as your floor. If a shop cannot meet it, sell to them at retail instead. Twelve cakes is a workable floor for a home kitchen.
Should I charge wholesale buyers for delivery?
Build delivery into the price per cake rather than adding a separate fee. Buyers compare the total they pay, and a surprise fee makes the price look higher. If a shop is far away, raise the price for that shop or skip the account.
Do I need a business license to sell cakes wholesale?
Rules differ by state and by town, and wholesale often has different requirements than selling at a market. Check with your state department of agriculture and your local health department before you quote a shop. This page is general information, not legal advice.
How do I set a price that stays the same all year?
Cost your ingredients at the price you paid and review the sheet when a case price changes. Give buyers 30 days notice before a price change, in writing. A price that moves every month makes you hard to plan around.
What if a shop wants net 30 payment terms?
Net 30 means you wait a month to be paid for cakes you already made and delivered. If you agree, keep the first orders small and ask for a deposit on larger ones. Many small shops will pay on delivery if you ask.
General information, not legal or tax advice. Check your state and local rules before you sell wholesale.