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Selling it

Selling wholesale

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Wholesale is normally outside a cottage food exemption, which makes it a licensing decision before it is a sales decision. Most of these laws permit direct sale to the person eating the product and not sale to somebody who will resell it.

What changes when you cross over

Wholesale is not a bigger version of selling at a market, it is a different business with different constraints, and the first of them usually decides whether you can do it at all. Under most cottage food exemptions you cannot sell wholesale, which makes this a kitchen question before it is a sales question.

Market stallWholesale
KitchenOften your ownUsually licensed
LabelExemption disclosureFull compliance, and possibly nutrition facts
GradeNobody asksA buyer may
Case packLoose jars are fineCases, consistent and palletisable
PriceRetailRoughly half of it

The arithmetic that catches people

A wholesale price is roughly half a retail one and the costs do not halve with it. That gap is survivable at volume and brutal at small volume, which is the opposite of the order most makers arrive at it in. Work the numbers at the quantity actually being offered rather than at the quantity you hope follows.

A wholesale price is about half the retail one, and the costs that were fixed do not halve. On a product whose main input is set at 45 parts fruit by regulation, there is less room to absorb that than in most categories, which is why what to charge has to be answered for both channels before you take the first account.

What a buyer will ask for

Buyers have a standard list and none of it is negotiable. Having it ready turns a conversation that stalls into one that closes. Assemble it before the first approach rather than in response to one, because the gap between being asked and being able to answer is where most first wholesale conversations die.

A consistent case pack, a lot code they can trace, a shelf-life statement and liability insurance. The first two come out of your batch records and the last is on insurance.

References

Michigan State University Extension. Selling Safe Food: The Michigan Cottage Food Law (E3363), and related MSU Extension guidance on which preserved products the law covers. canr.msu.edu
United States Department of Agriculture, Agricultural Marketing Service. United States Standards for Grades of Fruit Preserves (Jams). ams.usda.gov
Penn State Extension. Food for Profit: Commercial Production of Jams, Jellies and Fruit Butters. extension.psu.edu
Written from federal regulation and published extension guidance, not from a laboratory. A standard of identity is a federal floor and your state adds to it. Anything here is a starting point for a conversation with your state department of agriculture, not a determination that you comply.