New Posts  All Forums:Forum Nav:

Pricing

post #1 of 5
2/9/09 at 11:45am
Thread Starter 
Can anyone please share how they price their dishes?

I have read where your supposed to divide the raw ingredient pricing by .28 - .33

For Example, if a dish costs $5 in raw ingredients, then your retail price point should be between $15.15 - $17.86

Some people have suggested looking at competitor pricing, but with a difference in taste, raw ingredients, cooking style and overall packaging, this can be difficult.

Thanks
Reply

Featured Stories on ChefTalk.com

Follow ChefTalk on Pinterest!
Fabulously complete; a solution to every classic Italian cooking conundrum
Challenge June 2013 - Pasta !
post #2 of 5
2/9/09 at 6:44pm
Depends if you are on premise caterer or off premise

figure your overall cost, not just food cost. What is YOUR time worth?

Clientel? upscale or not ? location? day of week Saturday Pm more then sunday pm and on and on many many varied factors
CHEFED
Reply
post #3 of 5
2/9/09 at 7:05pm
Chef Ed is right, ther are a lot of factors to consider. The major factor being Gross Profit Margin, Most people work between 65% and 80% GPM It varies according to the type of food, service and establishment. To calculate your GPM the formula is;

Gross Profit, divided by Total Revenue.

In other words if your food cost is $5 and your price point is $17.86, your gross profit is 12.86.
Divide this by 17.86 and you have 0.72 or [72%GPM]

If food cost is $5 and price point is $15.15, it will be ;
10.15 divided by 15.15 giving you 0.67 or [67%GPM]

I've never seen your formula but the figures are in the ball park.
Reply
post #4 of 5
2/10/09 at 5:29am
Total Food cost x 3 = selling price + 10% added to cost for transportation to site.

In other words total meal includes app, salad entree, coffee ,desert cost $14.00 x 3=$42.00 SP +$1.40 =43.40 round off $44.00 per person plus tax and gratuity.

So the better you are at purchasing the base products the better and more attractive your pricing to customer.
You should never lose a function because of price.As long as you can make money at it take it. Something is better then nothing, and you will gain in overall dollar volume.
CHEFED
Reply
post #5 of 5
2/10/09 at 5:41am
There are ALWAYS exceptions.....such as a party for 8-10, or a lunch for 22...offsite.....

What if you made a labor intensive but low cost dish?

What if it's a non-profit who you do alot of work for and they need someone to make dinner for 8 and serve it....

Piggy backing when possible so labor can be shared for events.

What about the party you bid that has 100 guests instead of 250?

Your costs go down as the guest count goes up.

If you are bidding on jobs a year out, and most weddings are at least 6 months....what if food prices go through the roof?
cooking with all your senses.....
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Professional Catering