Wholesale to Cafés: Pricing, Terms and Keeping Relationships Healthy

Wholesale means selling your products to other businesses, such as cafés, who resell them to their customers. It can bring predictable orders, but the economics are different from retail.

Know your wholesale margin

Cafés need to make their own margin, often a markup of two times or more on what they pay you, so your wholesale price will sit well below retail. Start with your cost per unit, including packaging and labelling, then add a margin that still covers overhead and profit at wholesale volumes. If your costs are too high to support this, look for ways to reduce them before approaching buyers.

Set a clear price list

Create a simple wholesale sheet with product names, sizes, prices, minimum orders and delivery terms. Consider volume tiers for larger orders. Keep your suggested retail price consistent with your own shop prices so you do not undercut your customers.

Bring samples that can be tasted straight away, along with specification sheets that list ingredients, allergens, shelf life and storage. Café owners care about taste, but also about consistency, labelling and whether the product fits their menu.

Agree terms in writing

Cover ordering days, delivery schedules, minimum order sizes, payment terms, returns for damaged or out-of-date items, and how price changes are communicated. Consider whether you will give any exclusivity in an area, and think carefully before doing so. For larger deals, consider getting legal advice on contracts.

Meet the regulations

Selling to other businesses usually requires compliant labelling, traceability records and the right facility approvals, and the requirements differ by country. Keep batch records so you can identify what went to which customer if a problem arises.

Deliver reliably

Late or short deliveries can hurt your customer's business. Keep a buffer of stock, confirm orders in advance and communicate early if something goes wrong. Make your packaging suitable for storage and handling in a busy café.

Provide display materials, recipe ideas or staff training on how to describe your product. A café that understands and likes your product will sell more of it. Share information about allergens clearly.

Manage cash flow

Wholesale buyers often pay on terms such as thirty days. Make sure you can fund your production until you are paid, and chase overdue invoices politely but promptly. Check a new customer's reliability before offering large credit.

Meet each account every few months, review sales and ask for feedback. Healthy wholesale relationships are built on steady communication.

Remember that your best accounts are the ones where both sides profit. If a café struggles to sell your product at a fair margin, talk about it early, because a quiet account that stops ordering costs you more than an awkward conversation.

This article is general information, not legal, financial or medical advice.