[shroomgirl]

there are many ways to price out events, how and why do you price the way you do?


typically we will price out a menu (not ala carte)

then staff

then any rentals

But in some cases we'll package an event......
food, staff, serviceware for xxx-xxx amount of people $xxxxx

On very rare occasions someone wants everything priced out individually.....many of our competitors work that way and I guess unknown clients want to compare apples to apples.

*do you charge for your equipment? serviceware?
*upcharging on rentals from rental companies? %
*do you decorate, what if the client wants to have a more elaborate display?
*drop offs, delivery fees
*service charges, gratuities, staffing....uniforms, workman's comp.....
*preferred caterers and the benefits/costs

All are questions that come up when working through how YOU design opporating procedures.

I've gotta lunch to prep for, gotta go......

[The Tourist]

Originally Posted by shroomgirl

*do you charge for your equipment? serviceware?

I may not be able to speak for many in the food industry, but I might be able to get the ball rolling in discussing attributes in the service industry.

For example, technically, I am a "Wisconsin reseller."

First off, I need a license and I must charge each client 5.5% sales tax for every product and service dispensed. During the intense gasoline pricing of 2007-08, I also had to charge a 'fuel penalty.'

My sharpening stones wear out. They cost +eight dollars per each, plus shipping. In a good month, I go through at least two of them. This does not take into account all of the tools purchased to even start my services. That is about 4,000 dollars, and it continues to mount as new products hit the market.

Then there is prep time. This involves cleaning of the knife (yes, many arrive filthy), polishing the decorative bright-work, taping the decorative portion of the knife with blue painters tape to avoid scratches, clean up, repair, etc.

Some clients want the knives picked up and delivered.

Business cards. My own shipping cost for new knives out of pocket. Legal fees. The cost of a tax accountant. The cost of test knives ("mules") that will be damaged, destroyed or sold below cost. (In another thread I mentioned the purchase of a Chinese cleaver which may or may not become a stocking item.)

As you can see, any sole proprietor runs up costs many might not consider--including health insurance--and any purchase out of pocket, no matter how slight, effects his end result bottom line. And let's be honest, any good guy is going to do pro bono work.

I charge 20 dollars per inch on high end Japanese kitchen knives. Considering the expense here, it's not a great deal.

For example, my doctor is Japanese and he owns many real-deal knives which have been handed down to him over generations. He ships them to Japan to have them sharpened (polished is the correct term) by a togi-shi.

Imagine his invoice...

[ED BUCHANAN]

Difference between you and Mushroom Girl and myself is we deal with perishable items where as you do not. After figuring out my total cost and projected selling price, I add 20% for unknowns, which when dealing with catering off premise happens all the time. Also it is against the law to include sales tax in price so we add it to final bill and in many cases gratuity is also extra. Sometime I base my price on how big a diamond she has on her finger, and where he has his suits made, where they live and kinda car they drive. Welcome to the Catering Business.

[ChefBillyB]

I only give the client a cost per person price, how I break it down is my business. I will make money on everything. I may feel I could give a better price on the food if I get the whole deal. If they want to pick and choose to get the better price on everything, then so be it. Then just have me give a bid on the food. I have always had people ask me to cater an even because they want me to be the caterer. 99% of the time for me a bid is just a process.I have done $90 to $125 per person caterings, you don't play around with looking for to many bids, you look for the right person that can do it .........Bill

[chef.ESG.73]

In my contracts I break down everything, for example 100 guest. I give a per person price with complete breakdowns of how I came up with cost per person. I feel the customer has the right to know were all their money is going and in what areas.Whether or not if I am adding cost to rentals for my role/responsibility in producing them or what my food cost/labor cost is, is my business. I break it down to what I am charging, not what it will cost me.

Food: $2,300.00
Rentals: $600.00
Staff: $800.00
Ect.....
Ect.....

Cost Per Person $37.00

[ED BUCHANAN]

Originally Posted by chef.ESG.73

In my contracts I break down everything, for example 100 guest. I give a per person price with complete breakdowns of how I came up with cost per person. I feel the customer has the right to know were all their money is going and in what areas.Whether or not if I am adding cost to rentals for my role/responsibility in producing them or what my food cost/labor cost is, is my business. I break it down to what I am charging, not what it will cost me.

Food: $2,300.00
Rentals: $600.00
Staff: $800.00
Ect.....
Ect.....

Cost Per Person $37.00

If you are selling a package plan, everything included you don't have to do this.
Only sales tax xtra.

On an outside gig rental co gives you bill lets say 500.00 you collect bill from client yet you pay rental co. 15% less then his bill. This was standard practice in NY. Thats his commission to you for using him.