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When will people learn? CATERERS HAVE TO EAT TOO! - Page 2

post #31 of 45



 

Quote:
Originally Posted by KYHeirloomer View Post

Foodpump, I don't understand your comparison.

 

To give samples or not give them is a marketing decision you make based on its effect on your business. If you don't think it's a good strategy, that's fine. But what has it to do with KFC's decision?

 

What KFC is trying to do is project the (maybe subliminal) message that among fast food joints theirs is so much better than the others that employees at the other place eat KFC rather than their own food.

 

In other words, within the context of fast food, it's the place where other chefs eat.

 

As I said before, the principal is exactly the same, whether you're talking about two bucks for a chicken sandwich or $40 for an entree.


The KFC thingee really makes me scratch my head: Offer a free meal to competitor's employees if they show up in uniform.  In other words, the people only come if there's free food, hence the offer.  No subliminal message of superior food, only images of trained monkeys responding to food.  Would they come in uniform if KFC offered  50% off, or a free toy? I dunno.... It just seems to me that KFC is figuratively "mooning" it's competitors by making it's employees show up in uniform for a free lunch.  No connotations or subliminal messages of better products, service, or value.  Sure it makes every one laugh, but does it sell chicken?

 

Then again, I've pretty much isolated myself from TV, and when I do watch (which is very rare), I always "mute" the commercials anyway.  Same for radio.  Maybe I'm just living under a rock.

 

Yeah yeah, samples. It is a fact of doing business, and I have to do it as well.  The only ones who aren't giving out free samples are the banks and the undertakers......

...."This whole reality thing is really not what I expected it would be"......
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...."This whole reality thing is really not what I expected it would be"......
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post #32 of 45

>It just seems to me that KFC is figuratively "mooning" it's competitors by making it's employees show up in uniform for a free lunch.  <

 

I think maybe you're missing the point of the campaign. It's not aimed at the competitors, per se, but, rather, at getting the competitors' customers to change teams.

 

Current KFC customers can be especially useful in that regard, because they talk to their friends and relatives. And the hoped-for result is that they'll say something like, "you know, even the employees of other fast food joints eat at KFC. So they must be doing something right."

 

BTW, this is why, unbeknowst to some people, "word of mouth" is, most often, a carefully orchestrated event. But I digress.

 

Whether it works or not only time will tell. But on the face of it it's a great marketing strategy: low cost with a potential for high returns. And when you're talking about an audience whose decisions are often based on what toy comes packed in a meal, it really isn't hard to realize a big return on a small promotional investment.

 

The downside, and this is often true with marketing- and PR programs, is that it's difficult to quantify results. By no means an insurmountable problem, but the program managers have to be careful to assure that they are, indeed, measuring what they think they are.

They have taken the oath of the brother in blood, in leavened bread and salt. Rudyard Kipling
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They have taken the oath of the brother in blood, in leavened bread and salt. Rudyard Kipling
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post #33 of 45

When I cater for a client, I determine the quality of the meal, so as to guarantee the quality and satisfaction of the out come. I have had clients come to be and say, I want you to cater my function, and I have x amount of $$$$. If I can't make my company, myself, and the client look good, catering their function, I will explain to the client what needs to be accomplished for a successful, good quality outcome. I never take a catering for the money, but always for a successful outcome for my client, my company, and myself..ChefBillyB

post #34 of 45

so true... also, i love your signature that cooking is about how the food will TASTE not with the LOOKS though it adds beauty and attraction but it only comes second for the taste is the most important thing that all chef should put much effort on.

 

Quote:
Originally Posted by caterchef View Post

  When will people learn? CATERERS HAVE TO EAT TOO!

I keep getting calls where they want a Fine Dinning Menu for casual dinning price.

First off I don't even know where they are getting my number, I don't even advertise.

All my regulars know my pricing system ,FOOD COST+LABOR COST+EXPENSES.

I don't care if they eat Prime Rib, Short Ribs or Spare Ribs, that's up to them.

When I turn my ovens on, I go to the bank with the same money.

If they want fresh asparagus or frozen, Green Beans or Harcot Vert, it's their choice.

I know times are tough but let's be realistic.Every business has to be profitable.

Now I see KFC is giving a free sandwich to competitor employees that come with their uniforms on. " I am sure that Colonel Sanders is turning over on that one."

post #35 of 45

Years ago I would have agreed with you cookpiper, now not so much....catering is as much if not more about the visuals.....believe me it hurts to say that.

cooking with all your senses.....
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cooking with all your senses.....
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post #36 of 45

Interesting topic and for what it's worth going back to the OP, I think that the general public has no idea of the costs etc when it comes to catering an event or running a restaurant.  It's up to us how we run things and what we do or do not do and everyone has different feelings when it comes to that. 

OK ... where am I going?.. and WHY am I in this handbasket??
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OK ... where am I going?.. and WHY am I in this handbasket??
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post #37 of 45

Quote:

Originally Posted by shroomgirl View Post

Years ago I would have agreed with you cookpiper, now not so much....catering is as much if not more about the visuals.....believe me it hurts to say that.


'Tis a fact you can't get round....the eye eats first!

"Life is what happens to us while we are making other plans."
Allen Saunders, 1957.
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"Life is what happens to us while we are making other plans."
Allen Saunders, 1957.
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post #38 of 45
Posted by caterchef View Post
For years in the retail market the status quo was buy at $.40 and sell at $1.00

Then you could sell at 50% off or 2 for 1,  and still make a profit.

Then Sam Walton changed all that.

He said sell for a small percentage over cost and if the cost goes down lower the price.

 

The status quo in the retail market has never been "buy at $.40 and sell at $1.00." Retail mark-up, not retail gross margin, is calculated with the simple equation:  retail minus cost divided by retail. In caterchef's fictional example, you'd have $1.00 minus $.40 divided by $1.00 = 60% mark-up. Standard keystone mark-up, retail industry-wide, is 50% upon initial pricing. Your local Sears store, using keystone mark-ups, may, at the end of a profitable fiscal year, show a 5% profit on total gross sales. 


Sam Walton, in his autobiography, Made In America, repeats, numerous times, "Profit is made in the buy; not the sell." Never did Walton or any retailer of any success suggest the financial suicide of selling for a small percentage over cost. The cost of operation of any retail operation requires that a high initial mark-up be maintained. FYI, the Walton organization is the largest retailer of diamond jewelry in the United States. In that department, mark-ups can range as high as 300%. Were the Walton organization to start selling gems at "a small percentage over cost" there isn't a wholesale diamond merchant on earth that would provide product to Walmart and Sam's Club. Walton never said, "if the price goes down, lower the price." What he told his buyers was, "if an item doesn't sell to our profit standards, tell the vendor that if we don't get markdown money or compensatory goods (comps, at no cost) the Walton organization will close their account.

 

post #39 of 45
Quote: Originally Posted by cookpiper View Post...I love your signature that cooking is about how the food will TASTE not with the LOOKS though it adds beauty and attraction but it only comes second for the taste is the most important thing that all chef should put much effort on.

Frankly, I don't think that there was ever a time when "the look" wasn't just as important as the taste. Food that doesn't appeal to the eye may not even reach the palate.
post #40 of 45

RSteve wrote, 

Frankly, I don't think that there was ever a time when "the look" wasn't just as important as the taste. Food that doesn't appeal to the eye may not even reach the palate.

 

True.  Very true.  But also more true of the high than the low end.  The "look" isn't as important for a $6 p/p buffet-line, pancake breakfast as it is for a plated, $125 p/p dinner for 20; cocktail, wine and digestif (choice of port. calvados, rare rum, or cognac) service not included.

 

The "look" isn't the only thing that responds to how and where you  fit in the market.  For some products -- most definitely including food -- a lot of the worth is perceived as well as intrinsic; and the structural relationship between cost and pricing can be very complicated.  For instance, there are times you have to charge high prices to meet the expectations of your niche, even though your actual productions costs are fairly low.

 

RSteve, I'm not going to use bandwidth quoting your other post but thought it was well put, accurate, and a refreshing contrast.  It's nice when someone knows what (s)he's talking about.

 

BDL


Edited by boar_d_laze - 7/26/10 at 11:08pm
post #41 of 45
Thread Starter 
Quote:
Originally Posted by RSteve View Post

 

The status quo in the retail market has never been "buy at $.40 and sell at $1.00." Retail mark-up, not retail gross margin, is calculated with the simple equation:  retail minus cost divided by retail. In caterchef's fictional example, you'd have $1.00 minus $.40 divided by $1.00 = 60% mark-up. Standard keystone mark-up, retail industry-wide, is 50% upon initial pricing. Your local Sears store, using keystone mark-ups, may, at the end of a profitable fiscal year, show a 5% profit on total gross sales. 


Sam Walton, in his autobiography, Made In America, repeats, numerous times, "Profit is made in the buy; not the sell." Never did Walton or any retailer of any success suggest the financial suicide of selling for a small percentage over cost. The cost of operation of any retail operation requires that a high initial mark-up be maintained. FYI, the Walton organization is the largest retailer of diamond jewelry in the United States. In that department, mark-ups can range as high as 300%. Were the Walton organization to start selling gems at "a small percentage over cost" there isn't a wholesale diamond merchant on earth that would provide product to Walmart and Sam's Club. Walton never said, "if the price goes down, lower the price." What he told his buyers was, "if an item doesn't sell to our profit standards, tell the vendor that if we don't get markdown money or compensatory goods (comps, at no cost) the Walton organization will close their account.

 



My first job in 1956 was in a wholesale/retail sporting goods store and I know my percentages, I even made championship winning duck calls upstairs. I also know a little about the diamond business,I bought my wife's $1,000 wedding rings for $200 because the markup is about 800% in most places. And Sam Walton has been "Rolling Back Prices"when he got a better buy for a long time. And Sam Walton started with a dime store and not jewelery store that you buy wedding rings hopefully once in a lifetime. and became the largest retailer because of his selling price and not his buying power.

 

AS for this Quote:

 Frankly, I don't think that there was ever a time when "the look" wasn't just as important as the taste. Food that doesn't appeal to the eye may not even reach the palate.

 

Food can look appetizing without drops of sauce all over the plate with a tooth pick run through it and blades of chives on top like you were going to take a picture for a magazine..

post #42 of 45

Oooohh......I like you already!    ....so don't mess with RSteve.

Quote:
Originally Posted by caterchef View Post

I also know a little about the diamond business,I bought my wife's $1,000 wedding rings for $200 because the markup is about 800% in most places.


Might not have cost you arm and a leg but chances are it cost some other people one or two...

"Life is what happens to us while we are making other plans."
Allen Saunders, 1957.
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"Life is what happens to us while we are making other plans."
Allen Saunders, 1957.
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post #43 of 45


 

Quote:
Originally Posted by Titomike View Post

Oooohh......I like you already!    ....so don't mess with RSteve.

 

But, Dr. Anton Phibes has been dispatched from the building.
 

post #44 of 45

Yes, there was another one of those today...they're new to me.

His cameo was a pleasant surprise though!

"Life is what happens to us while we are making other plans."
Allen Saunders, 1957.
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"Life is what happens to us while we are making other plans."
Allen Saunders, 1957.
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post #45 of 45


"Dr, Anton Phibes has been dispatched from the building."

Quote:
Originally Posted by Titomike View Post

His cameo was a pleasant surprise though!

The gif is a real hoot, as is this one:

 

laughing.gif
 

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