Every catered course increases the company's food and labor-hour costs.
You can price catering services to cover all your costs and stay competitive in the local market. You can arrive at price that is fair to you and the customer through detailed cost analysis. The location, number of guests and volume of food all play a part in calculating the price for a catered event. Help a host customize the catering services for his gathering to meet the needs of his guests and budget.
Instructions
1. Meet with the host of the party to discuss the details of the event. Find out where it will be held, how many guests will be in attendance, and the start and end times. Ask for information about the space the caterers will be given to prepare or cook the food.
2. Discuss every item on the menu with the host. Explain the ingredients and techniques you plan to use. Ask if she has any special dietary requests or suggestions.
3. Tell the event host you will get back to him within 24 hours with a price. Get current contact information for the host so you can reach him when you are ready.
4. Calculate the costs of catering the event. Include the price of gas or transportation, total employee wages and food costs. Insurance, advertising and licensing costs are not commonly figured into individual job costs and tend to get covered in the profit margin.
5. Increase the total cost figure by 40 to 50 percent to reach the initial quote amount. For example, if cost figures came in at around $1,000, set the quote somewhere in the $1,450 range. This markup gives you as the caterer some room for negotiation with the customer.
6. Divide the pricing quote by the number of guests expected to attend to reach a per-person figure. For example, the cost per person is $14.50 if the total quote is $1,450 for 100 guests.
7. Contact the event host to deliver the pricing figures. Negotiate with the host if she is not satisfied with the prices you offer. Reduce your figure by 10 percent at the most to protect the profit margin.
8. Draft a basic contract listing all the catering services and details of the event along with the agreed-upon price. Get the host to sign the contract before the start of the event.
Tags: with host, catering services, details event, event host, example cost