pricing a job

[damack]

im wondering how you guys go about pricing a your jobs?

[fodigger]

Depends is it in our facility or of premise? We run about 20% food cost on banquets because our labor is so much higher. What kind of staffing ? how hard is the job? Does the chef need to go or can a line cook handle it. I have alot more questions than answers w/ the limited info you left. sorry

[Shelly Anne]

Many caterers I know and myself try to hit costs x 3 for pricing jobs. Just don't underprice. Shel

[juliec]

Alot of info needed here, before any answers can be considered.
What type of venue is this, What are the facilities. Are you just preparing, or do you also need to provided servers, bartenders, chefs, line cooks. Is this high class, middle class....????? There are alot of variables, can't just give a blanket answer.
Let's start with what area you are located in.....

Julie

[munchers]

Originally Posted by Shelly Anne

Many caterers I know and myself try to hit costs x 3 for pricing jobs. Just don't underprice. Shel

Here in Ireland, and in Dublin we would x 5. And get away with it.

[tigerwoman]

Originally Posted by munchers

Here in Ireland, and in Dublin we would x 5. And get away with it.

depends on the type of caterer you are. clientele and what the market will bear.

we don't bank percentages, we bank profit.

case in point, an bacon and egg sandwich might cost 40 cents in food cost and sell for $1.00 -3.00 depending on your market, if it's ala carte or part of a catering gig for 20 or 2000 guests. You need to build in costs for labor, overhead, sales, market, among other things, and last but not least PROFIT.

now take the case of a portion of filet mignon, which you might purchase for $4-20 (6-8 oz portion) (depending on size, quality and price) and sell for $10 - 90 depending on size of event, type of event, quality of product, and just wht the market may bear. The percentage mark up may not be as great but the dollar (pound, euro, whatever your currency) amount is far greater.

which would you rather take to the bank - percentages or profit.

next scenario, McDonalds = Volume - good percentage markup combined with high volume = high profit.


there really isn't one answer - and even within catering there are so many different scenarios and costs to take into account/

can you even venture a guess as to how many different types of catering categories there are - and how these change from market to market. ???

everyone has to start somewhere and asking questions is good, but without a broad education both practical and via studying books and courses, but lots of hands on, you will learn over time.

Bill Hansen and Mike Roman both have excellent books that cover alot of the basics. No substitute for real live experiences. We just had a lively discussion of this over on another forum too when a newbie asked about how far ahead one could prep and platter fruit and veggies for 300 - and the experienced caterers were quick to point out that working in the field would answer those questions.

It's hard to figure it out when you are new to it all - so the school of hard knocks is one way to go, but tutored experience is priceless.