Re: How Small Do you Do???

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Posted by Donna Bégin on July 12, 1999 at 07:59:53 :

In Reply to: How Small Do you Do??? posted by Carl Jones on July 10, 1999 at 20:30:35 :

A couple of months ago I had a call from one of our Government agencies. They wanted a luncheon for 20, delivered for $9.00 p.p.
It was more work than money, but, I wanted the exposure. They were very impressed. No paper or plastic, set up, clean up and I made something for their afternoon break. I also billed them.
When I received the cheque, they sent $100.00 extra and said I would get their business.
Well, on Saturday, I did a function for the head of that government agency for over 100 guests. It was an engagement party for his daughter. It was very fancy and very formal. Some guests flew in from South America. Lots of important people. I guess what I am tryng to say is sometimes it pays off and I liked your approach with a more extensive menu. You saved on the wages and I think I would have done the job free for the advertisment.
Good for you, Carl. Menu sounded exciting and classy.

: I know there is no more emotional topic than pricing. I constantly hear. " What is your minimum number or How small a group will you do?" My response is "We do any size"

: The question is not necessarily pricing, but rather the best way to present the pricing. Normally, I will cater a nice hot lunch buffet for as few as 25. I use the matrix pricings.

: 9.95 9.25 8.45 7.95
: 25 - 34 35-49 50-100 100-200

: Ok, so I got a call asking me to cater for 9. It was a pharmaceutical rep. I told her, I would do it, but I would have to charge her for 25 at 9.95. BUT, I would give her a gourmet meal that would feed 9. I could easily turn these down, but we made such a great impression on the guests and the client that I feel I will receive many more jobs which will be larger from this client. Normally the 25 at 9.95 would be Chicken breasts, two veggies, a nice salad, simple dessert and tea.
: We served Herb Encrusted Sea Bass, a beautiful tray with room temp grilled or roasted vegetables (yellow squash, zucchini, eggplant, yellow peppers, tomatoes, leeks, portabellas and garlic.), Basmati Rice, and a Mesclin Salad with Toasted Walnuts, Gorgonzola Cheese and our Raspberry Poppyseed Dressing, and a Chocolate Truffle Cake with Chocolate Ganache Icing containing Godiva liquer, Chamborde, and Callebaut Chocolate. Plus Iced Tea.

: Bottom line it came to about 27.00 per person. This may sound normal, but we are in a market where people squirm over a 10.00 lunch.
: You want them to know that we are not "overcharging" but rather giving them a meal worthy of the price. Since we are more of a custom caterer without daily jobs, we have to use the same labor for the 9 as if there were 35. I explain this.

: The question is: should I explain the price? Just how much detail do they want to know? I don' t want a reputation for overcharging, but they have to know that jobs for 9 are not necessarily priced per person but Labor plus Food, plus rentals, plus overhead, plus profit.

: Mainly I am interested to hear how various caterers handle this.

: Blessings,

: Carl Jones

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