Re: gratuity

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Posted by Carl Jones on January 08, 1998 at 13:17:30 :

In Reply to: gratuity posted by Nancy Shadomy on January 07, 1998 at 18:11:15 :

: excuse the spelling!Should it be figured into the bid or what? Also does anyone have a recipe for a dry italian dressing mix? $27.00 a gallon for a mix seems too high to me.Does anyone know what happened to the Internet Chef site? Thanks, Nancy... The Savory Palate

On gratuities :

I personally have an "event service charge" which is a profit center for my company
I pay my staff well enough so that gratuities are not expected. Some companies
have a problem with gratuities (tax wise) but have no problem with service charges
Most caterers charge from 15% -18%... I personally think that people accept 15% alot
easier than more....

There are considerations as to do you charge it on the total bill, including
rentals, staff and food. I charge it on the total amount.

If you have been "building it in" try backing it out, then adding back on
as a service charge. It makes your bid appear to be better...

Example: 100 guests

Food: 7.84 per guest
Staff: 395.00
Rentals: 2.66 per guest

Sub: 1445.00
15% 216.75
Total: 1661.75

As you can see the result is 16.62 per guest, but I dont give them
a bid that shows the total like here, until I prepare an invoice.
Now if they do the math, they will see it... but initially it all
sounds very reasonable.... if their guarantee ends up less, we still
will charge same for staff. This protects us some what. You have to
admit this approach does sound more reasonable.

Another thought is the fact that people appreciate to see the whole
story. It makes the client wander what the other caterers are hiding
or if the caterer will give them a higher bill at the end.

I'm rambling

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