Starting A Wholesale Chocolate Business

by Maggie
(US)

I have a question about starting a wholesale chocolate business.



I sell chocolate candy lollipops, favors, etc., on-line at etsy.com. I have recently been approached to sell to someone who has her own business (not candy) at a wholesale level.


She would like me to sell to her at a rate of 30% discount. She works with a party planner and many other companies at a wholesale level and will offer my company to others at wholesale.


My question is, where will I see a profit if I start selling my goods at wholesale? Is 30% reasonable.


She states that at times, I will not need to worry about the final packaging of my items because they will be included in her items to make a large centerpiece.


I just can't get the concept of where I will eventually be making money, if I sell to her and others alike at wholesale?? Do you have any thoughts?






Hi Maggie,

First of all let me say that I had never heard of etsy.com (shocking, I know), so I had to take a quick run over there to have a look around. Very interesting! It seems a bit like ebay, but for hand made items. Am I right?


Do you sell much via etsy? I'm curious as to how much traffic you get there (since I'm online a lot and have never run across it).


As for your question, I can see your dilemma clearly. It is not unusual for people who are starting a wholesale chocolate business to buy at one price and sell for a much higher price (30% is not unusual).


The problem comes in when you consider selling at wholesale prices. You need to still have a profit margin, or what's the point?


The only solution or suggestion I would offer you is to take into consideration your own costs and add a profit margin that you are comfortable with and make THAT price your "wholesale price" for this woman and her group of wholesalers.


It isn't necessary that you give them 30% off of the price you sell on etsy or elsewhere. You can just say that you are already selling at wholesale prices. ;-)


For instance, if I were to come into an agreement with you (interested?), I would ask you what is your lowest price you are comfortable selling your handmade chocolates for, and then I would add on whatever amount I wanted to make above that and list them here on my site.


When I made sales, I'd then send you the order and you'd fill the order at the agreed upon price. Make sense? That's sometimes referred to as dropshipping. I get the order and you fill it.


That's the type of thing you could work out with this woman. If she is selling via her "party planning" she can add whatever percentage she wants to the cost when discussing the quote to her clients. If she needs a receipt for the client from you invoicing the full amount, you can provide that and then pay her the difference on a commission basis.


The easiest way, though, is for you to sell at what price is comfortable for you and let her worry about her mark-up.


There's absolutely no reason in my mind why you can't make a profit and she can too. Handmade chocolates for special events aren't inexpensive, so the market will probably be higher than what you are currently selling them for on etsy.


Does that help at all? I hope so. If I've misunderstood your question in some way, let me know. Keep me posted on how it all turns out!

Blessings,
Angie

Comments for Starting A Wholesale Chocolate Business

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Jan 14, 2014
Selling Homemade Candy Online NEW
by: Angie from chocolate-candy-mall.com

As far as I know, you don't need any special licenses to sell your treats online. There may be specific regulations in various parts of the country, but I am not aware of them. Sorry I can't help you with specific locations.


However, as far as listing your goodies in our online store, we don't require anything like that from you. You simply sign up and get started listing your products for sale, etc. There is a step by step manual provided.

All the best,
Angie

Jan 11, 2014
chocolates favors/gift NEW
by:

I too would like to sell chocolates as favors and also as gift arrangements. Would I need any special certificates/licenses if I were to sell on line. I am in Illinois Thanks for any input you may have for me

Nov 09, 2009
Laws regarding making and selling choc
by: Anonymous

Hi

I wanted to also begin selling my hand-made chocolate, but was concerned about the laws regarding making a food product and then selling it. Are you allowed to make hand made lollipops and sell them as party favors on a website - or do you have a food license to do that. State is New Jersey.
Thanks...

May 04, 2009
Handmade Chocolates Are Adorable
by: Angie

Hi Maggie,

I took a look at your work. Your handmade chocolates are adorable and reasonably priced. I definitely would like to chat to you about making your work available here at Chocolate Candy Mall.

I'm in the middle of a huge intercontinental move at the moment, so give me a few weeks to get moved and settled in and then we'll talk about the nitty-gritty details.

If you don't hear from my by the beginning of June, please email me to remind me at angie @ chocolate-candy-mall.com.

Meanwhile, it looks like you offer free shipping to US buyers if they purchase more than one item. Is that correct? That will help a lot in working out the details of our arrangement.

I think I'd like to offer some of the smaller items in quantities of say 6 lollipops or favors for a flat price with free shipping.

Anyway, we'll correspond privately about it when I have more time to devote to this. Right now I should be packing! :)

Blessings,
Angie

May 04, 2009
answering my question!
by: Maggie

Thanks so much for answering my question, now I understand it more clearly! I'm glad you checked out Etsy. Its amazing how creative the shop owners are. I should have given you my site www.chocolategirlie.etsy.com so you can see my work as well as my prices which are extremely reasonable compared to other shops out there. I feel that my prices are so reasonable that if I started wholesaling, I'd be doing twice the work and she would be reaping the benefits, am I right?
I would definitely be interested, if you were serious about entering an agreement with you! Let me know after you visit my site!

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