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how do you discount large orders?

post #1 of 3
Thread Starter 
:crazy: I am very new to this business. We sell tamales and a few other Mexican appetizers. We were selling a few dozen at a time, but by word of mouth we increased to nearly 100 dozen a week. Since I don't have any catering experience I would like some advice as to how to set a price for catering to local business with small meetings to larger events. Is there any rule of thumb to pricing? We sell are tamales at $10 a dozen. Any and all advice will be greatly appreciated. I have dozens of more questions but I'll ask them one at a time.:roll::roll::roll:

PS. What else would be normal to provide for a meeting? I used to work in a factory that would provide us with food from delis or pizza hut when we had to work overtime that was VERY short notice. They just dropped off the food and several 2 liter bottles of soda. They would also provide Mc Donalds breakfast for our group monthly birthday meetings. These are things that I am interested in setting up but need to know a little bit more on how to before I approach them with our business.
post #2 of 3
FIRST QUESTION. SIT DOWN AND FIGURE YOUR COST!

When I say cost, I mean food, labor. delivery.packaging, overhead etc. If you have to put on an extra person for the increased volume figure his or her salary. Then figure if you need a lot or a little amount of increased volume to pay for the xtra labor involved.. In some cases it does not pay.
That is why many places stay small and make money, sometimes when you get to big it is bad. Traditionally wholesale is 10 to 30% less then retail., but you have to give credit. To wait for your $ for 30 days or more cost you money.
Many caterers and restaurants are notorius fo being very late payers. Try and keep it COD if possible.. As far as selling other things, you know the area and clientel better then us. Find out what they are getting from other places. Do it better and cheaper and you will get the increased business. GOOD LUCK
CHEFED
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post #3 of 3
Thread Starter 
Thank You for your advice Ed . This information is beneficial to me. It gives me a foot to stand on.:smiles:
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