Selling a product wholesale typically involves negotiating bulk orders at a discounted rate. For example, a grocery store that buys a dozen donuts from your bakery for $3 a dozen at wholesale price, rather than $6 a dozen at retail price, will then resell the product to their own customers and realize a profit. The benefit to offering wholesale distribution is that you can develop a steady stream of customers that purchase in large volume.
Sales Region
Offering wholesale bakery services can be a challenge given the short-term durability of the goods. Retail customers will likely to want to buy baked goods on or around the same day they are prepared in order to preserve freshness and provide their customers with an exceptional product. As such, unless you have a truck fleet that can deliver products overnight, or arrange for customer pick-up, it will be more cost-effective for a small bakery to focus on recruiting clients within a nearby geographic region.
Potential Retail Customers
Identify potential customers in your selected geographic region. Consider grocery stores, restaurants, schools and cafeterias, hospitals and coffee shops. Research where these businesses are currently getting their baked goods. You can find this information by visiting the locations in person or contacting the purchasing manager at the businesses you're targeting.
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