Exclusive Catering

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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

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