Posted by Carl Jones on November 06, 19100 at 02:28:06 :
I have an opportunity to get an exclusive contract with my city''s Convention Center. To date, they have allowed most any caterer to cater there.
This means I have to compete on jobs with other caterers. IF I get an exclusive, not only would my sales increase, but I would no longer have to lower my price to get a bid. (I know you want to go off on a tangent here, but that is not the topic)
By having exclusivity, I would put a menu in place with various selections and price points. Main advantage is that I can control my profits without losing bids with price conscious clients.
MY QUESTION, FINALLY.
What is the going arrangement? They are looking for a percentage, no fixed lease. I know this is a question with answers from probably 5% to 25% with 10-15% being the norm. Did I just answer my own question? Maybe. I just want to hear about some arrangements out there.
Thanks so much.
Carl Jones