Posted by carl jones on October 06, 1997 at 21:02:30 :
In Reply to: Looking for someone to compare notes with and also... posted by Sherry on October 04, 1997 at 08:50:34 :
: to help with pricing. I've been catering (from my home) for 8 years now. I do business luncheons, open houses, a few weddings a year, bride's maids luncheons. My favorite party to cater is a cocktail party with finger foods. I always struggle with pricing. For business luncheons I usually only 31/2-4 times my cost. But for cocktail parties I 6-8x cost. Can't seem to come up with a formula.
first of all, pricing is based upon what the market will bear for your level of catering... your mark up is normal, do you include preparation labor in your cost that you mark up 3-4 times?
there are times when the standard mark ups seem to yield a low price and times when higher... but that way usually gives you a percentage based pricing instead of dollar margin based,
let's say you have a cost of 3.00 and you mark up 4 times, gives you a price of 12.00 and a margin of 9.00, but what if your cost was 6.00 and you marked up only 3 times? your price would be 18.00, but your margin would be 12.00... which would you rather have?
you can see using the same mark ups dont always make sense....
: I usually start trying to figure using a per dz (but I charge a per person price) price and when I add it up and divide by the number of guest, it always seems too cheap. So (this is probably really dumb) I just look at the menu and think of what they would have to pay from a club or other catering service. Below is a sample menu :
that is not dumb at all, it is the best way of doing it! charge as much as the market will pay, you work hard and deserve to make alot of money..... your clients are making plenty....
: Marinated Teriyaki Flank Kebobs
: Seafood Tartlets
: Chicken Satay with Peanut Dipping Sauce
: Mushroom Cheesecake with Bread Slices
: Italian Stuffed Mushrooms
: Warm Spinach Dip with herbed pita chips
: marinated vegetable kebobs
: Feta and Sundried Tomato Torta with crackers
: Garlic Cheese Biscuits
: Warm Pumpkin Cookies
: Cheesecake Bars
: Millionaire Shortbreads
: Raspberry Tea
: $14.00 per person plus tax and service labor
: Menu allows for approximately 18 pieces of food per person
nice menu, the price per person is base upon how many ppl, do you have any minimums????
also, dont hesitate to require guarantees!..
: I really don't have any overhead since I work from home and do all the work myself.
then you will make a better profit....
: I cannot believe that I still struggle with pricing. I have no problems in the food prep or coming up with ideas
: just, pricing.
we all struggle with pricing, i hate to lose a bid because i tried to charge a bit too much, but i alson have to think i could have gotten 22.00 for something i priced at 18.00...
:
: ALSO looking for someone who caters from their home and with about as much experience as I have to share ideas with. Times like this I wish I had a partner.
i own a restaurant and cater from the kitchen there.... but i will share ideas with you.... just keep posting!
: Thanks for listening.
your welcome
carl jones