Retail vs. Restaurant Pricing

[Freenorth20]

Hello!

I am new to the finer aspects of maple syrup making as a business and have thus far only sold as retail.. Recently, I have been approached by local restaurants who would like to buy my product and include it in their menus. I'm not asking for anyone's prices, but what is a fair mark down percentage for selling directly to a restaurant vs retail? Or is the price the same for all?

Thanks in advance,
-Sean

[n8hutch]

I personally take about 20% off for all my resellers and or restaurants. I guess Ithe really depends on what they have been paying. I've actually had people tell me what they had been paying and at times its more than I would have asked for. Sometimes a little less. You win some you loose some.

Biggest thing I struggle with is its almost impossible to charge everyone the same. If someone is going to buy 25 gallons a year off me I tend to give them a better buy than someone who buys 5 gallons.

[mainebackswoodssyrup]

Some people can make it for less than others which gives more wiggle room so you should first figure your cost and decide what you are happy with for a profit. We never undercut ourselves but have sold some for small profits hoping it would turn in to something more down the road. Sometimes it does, sometimes it doesn't. If you have multiple restaurants interested I would START with the same price for everyone. Local businesses (like maple syrup producers) do talk to each other. Down the road if one buys 5x more than the other than sure- I might give them a better deal but at least it is justified. I don't agree taking this approach with retail sales. It really gets under my skin to see $10/qt retail prices in big box stores but that's a different conversation all together.

[Freenorth20]

Thanks! That's pretty helpful. I don't have any other local producers in my area so I'll have to make sure everyone is getting a fair deal to start and then modify according to quantities purchased!

[lpakiz]

We have compiled a price list (retail and wholesale/case/friends and family)and have it printed out and available in the house, syrup shed, basement storage area, etc. and we stick to it firmly. Nothing more embarrassing than giving someone a price break just off the cuff, then not remembering, and being reminded of, that fact at the next purchase.

[milligkl]

Another consideration that should be taken into account is the frequency of distribution. I have some that buy 4-8 per month and only require a monthly delivery whereas others will consume the same amount but require almost weekly distribution. Restaurant distributor companies seem to sell for about 10-15% more than what syrup producers typically sell to restaurants for which is leaving money on the table. if they're using pure and don't have a farm partner who is a maple producer chances are they will jump at your price since they're paying a premium with the distribution companies.