Don't short change yourself

[RSteve]

Gut level answer, probably understood by most experienced professional caterers, misunderstood by others. You get to the point in this business that you know what it'll cost you to cater an event; give or take 10 to 15%, depending on seasonal menu items...within minutes of discussing the event. Then you calculate what profit you "need" to accept the contract.

Two virtually identical events may have differing profit requirements, simply because of the nature of the client/caterer relationship.

There is no way I would even consider a cost of labor arrangement with a client.

It's a great recipe for eventual bankruptcy...but you have to be in the business to understand the statement.