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Posted by Marat Dreyshner on 2015-01-06 15:14:00
Title: I am interested in operating a bakery. My wifes and my goal is to own a small bakery to sell kosher ...
Category: Operations

I am interested in operating a bakery. My wifes and my goal is to own a small bakery to sell kosher baked items (breads, cakes, etc.). The local superstore offered to use their kitchen in order that i can supply the store with kosher bagels that has a benefit for the store. My question is, what kind of a business relationship should be developed in terms how do i charge the store for the bagels and other baked good, as they are not charging me to use the space but I am using their overhead. thank you Marat Dreyshner Chef iKosherbake.com

Answer:

Chris Neal
2015-02-02 10:40:00

Hi Marat,

I applaud your start! Overhead can destroy your dreams pretty quickly and you have found the perfect situation, my brother and I did the exact same thing when we first started making croutons. The most important thing is to realize that this must be a win-win situation for both parties or one of you will feel they may be taken advantage of. I would propose that you first ask them what they are comfortable with. Are they looking for a certain amount of free product or are they happy with deeply discounted pricing. Take their proposal away from the first meeting and make sure it makes financial sense for you and don’t be afraid to try to bargain a little with them as they are turning down time for their machines into added profit.

 In our case, we simply agreed to an hourly rate for “equipment time.” An option for you could be to do the same and then exchange that time for full-priced product and at the end of every week sort out who owes who any difference.

Cheers and best of luck with your venture,

Chris Neal, Operations Expert, Neal Brothers Inc.