A catering contract to celebrate Black Heritage Month turned into a tough lesson for a Black-owned bakery in the South Bay earlier this month.

Two days after taking a job for Tesla, owner of The Giving Pies got a simple text message canceling the order

A catering contract to celebrate Black Heritage Month turned into a tough lesson for a Black-owned bakery in the South Bay earlier this month.

What started as a $16,000 deal ended up costing the small business owner thousands of dollars instead.

On Valentine’s Day, the owner of The Giving Pies in San Jose’s Willow Glen neighborhood received a pretty sweet call from a representative with Tesla: a catering job for thousands of mini-pies for a Black History Month event.

Owner Voahangy Rasetarinera, who started the business out of her home in 2017, says both sides agreed on a quote and exchanged an invoice for 4,000 pies for delivery this week. Because of the tight turnaround, Rasetarinera asked staff to work extra hours, she bought ingredients and packaging supplies and declined at least three other catering jobs.

  • The_v@lemmy.world
    834·
    9 months ago

    The partial payment wasn’t large enough if it left you wrecked at the end. Generally the partial payment should pre-pay to cover all of your expenses and labor. The final payment is the profit margin. That way you are never on the hook for a potential loss and will always break even.

    So for the bakery, they should have had a full prepay policy on all special orders. Even if “customers” walked away because of the policy.