Need help with Catering Pricing


 
Ernest Buckley

Ernest Buckley

TVWBB Fan
Word is getting around that my ribs and pulled pork are "up to snuff". I was asked yesterday if I did catering. I excitedly said yes!

I`ll need to price something for a small party of 20 people this week. The party is in 3 weeks so I have plenty of time to prepare.

The "customer" said they would get back to me with exactly what they want so I was able to delay the pricing telling them they had to tell me exactly what they wanted before I could price the catering job. They are emailing me today or tomorrow with a menu so I`ll need to get some prices ASAP.

I know they want ribs and pulled pork for sure. I told them that the minimal order for ribs was 3. They said they would need around a dozen. They also want pulled pork for 20 people so I guess 10 lbs of shoulder is enough? What do you think?

And sides... I was thinking:

Mac and Cheese
Coleslaw
Home made French Fries
Collard Greens
Home made Cornbread

Do I tell them to pick three or make all of them?

FYI- The cheapest ribs I can get here in Brooklyn, NY are 3 for about $25 at the local BJs (sort of like a Costco). I want to make it worth my time and effort so I want to price it where I`m making some $$$ but don`t want to overcharge and lose business.

Its a fine line I guess.

Here in NY (where everything seems to cost more), if I went out to eat, it would cost me $25 for a rack and a side. Pulled pork and two sides would be about $15. So how do I go about pricing a catering job?

Thanks!
EB
 
First, imo, the line isn't fine at all. You please yourself first and that means you make money. If it's too much for a customer, oh well, don't do the gig. If you cook a job and you are not making money you are not happy--and that is not worth it, ever, imo.

My fee structure is different from nearly everyone's (I don't cater; I cook in people's homes) but, imo, your best bet if using a more conventional approach is to go with a per head fee. Think of serving sizes, what would be on the plate, and what it cost you. Then price accordingly. (I wouldn't dream of pricing at less than $13-14/person for lower cost items, $16/17-$23/24 for higher cost items. See Jim Minion's pricing for his catering company here as a reference.

Contact wholesale meat suppliers, the ones that sell to restaurants, and check their pricing on meats. The vast majority will sell to the public but you'll need to buy by the case in most instances. Get a good relationship established and you can get things that are not generally available in stores.
 
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by K Kruger:
First, imo, the line isn't fine at all. You please yourself first and that means you make money. If it's too much for a customer, oh well, don't do the gig. If you cook a job and you are not making money you are not happy--and that is not worth it, ever, imo.

My fee structure is different from nearly everyone's (I don't cater; I cook in people's homes) but, imo, your best bet if using a more conventional approach is to go with a per head fee. Think of serving sizes, what would be on the plate, and what it cost you. Then price accordingly. (I wouldn't dream of pricing at less than $13-14/person for lower cost items, $16/17-$23/24 for higher cost items. See Jim Minion's pricing for his catering company here as a reference.

Contact wholesale meat suppliers, the ones that sell to restaurants, and check their pricing on meats. The vast majority will sell to the public but you'll need to buy by the case in most instances. Get a good relationship established and you can get things that are not generally available in stores. </div></BLOCKQUOTE>

I would agree that a price per head would be your best bet. I'm not sure at this point you should be too concerned with finding a wholesale meat supplier unless you plan on doing A LOT more of these things.

I use to help catering at my parents restaurant and we always went by head. It's also best with a small group like this to keep the sides options simple. Having them pick one hot and one cold (so you have completed in advance) might be an idea.
 
I agree with Kevin and Scooter that a per head price is fine. IMO, that is more of a benefit for the customer in that they can break down what they are getting for their money. From your perspective, I would think you need to factor in all of your costs; food items, materials, travel and time. Once your costs are covered, what do you think is an acceptable percentage for profit? Some things to ask yourself:

Is this for a friend or non-profit group? If so, you might be inclined to give them a break.

Do you have all the equipment necessary to prepare, transport and hold the hot food? If not, are you going to eat the cost of that hardware or are you going to continue with catering and factor in a percentage of those equipment costs into the per head rate?

To some extent, you can research the competition and see what they would charge. I only say that if your customer is 'shopping around'. If after doing your homework and you find out the competition can undercut you by quite a bit, and the customer is going to go that route; then thank them for their consideration. However, you really can't price your food and service based on the competition as no 2 catering services are the same. They each have different overhead costs; thus must charge accordingly. As a 1 man operation, you may very well have an advantage (no rent, no group health, no workers comp...)

The bottom line is as Kevin wrote, you've got to make it worthwhile, otherwise you're working for free or worse.
 
The per head sounds good.

To answer Pauls question, this is for a friend who is really into my BBQ. She often takes my stuff to work and shares it with her co-workers. They love it so this is for a party of people who have already had my stuff and are requesting it. It could turn out to be an ongoing business for me but at this point, I want to keep costs low and everything in house. As for transporting the food, she said she would pick everything up and she would just heat it up the next day which makes my life easier.
 
I would second everything said upthread, and add that it should be you giving them the options, that way you can accurately answer them when it comes to pricing. A lot less headaches that way. Plus you not bending over backwards at the last minute with an odd special request, that catches you off gaurd, and you're expected to deliver perfect results.
 
Ernest
I would deliver hot food and not rely on the customer to reheat it, it is your reputation here and you want as much control over that as possible.
 
hey ernest,,, i own a restaraunt and do some catering. in arizona you can rent an 8 qt. 2 burner stainless warming chafer for $20-25 a day. sounds like you would only need a couple for the meat and one for each side item. unless you plan on doing it more than once a month rent as much you can. they're a pain to upkeep and store. include the rental costs in pricing. if you net in between 20% and 22% you'll still be saving your friend some money.
 
If you plan on turning this into a business then your primary concern is what the customer wants. Consumers vote with their dollars - if you want their "votes," you have to give as much as you can for them. If you don't, someone else will. Then that person will get the dollars and all you'll get is to sit there feeling undercut and ripped off.
 
Not in my opinion. That's for Walmart. My primary concern is creating demand in the consumer for what I want to do--'make' them want what I want to provide.
 
I totally did not mean to imply that the only way to do business was to have low prices. There are many things a customer might value much more than a low price - and whatever THAT is, it's your duty to provide it if you want them to come back to you again/tell their friends about you.

A good example of this would be Nordstrom - they don't provide low prices because that's not what their customers want. Their customers want to be treated royally and that's what Nordstrom gives them and that's why the customers come back.

Of course price is a concern. Look at the most successful airline in recent years - Southwest Airlines. They have competitive prices, treat their customers wonderfully, treat their employees wonderfully (customers can tell) and people therefore come back to them whenever they can.

One more example is Google. They became a top company because they gave people what they wanted: a powerful yet easy to use search engine, mega amounts of free email, non-obtrusive advertising, ect...

Just things to keep in mind.

Edit: One more example (I can't help myself): Apple. Their products are super expensive (airbook, ipod, iphone) but their customers to an extent don't care about the price because Apple gives them what they truly care about - style. It's all about keeping the customer happy (or happier than the competition is keeping them).
 
This is a good debate. I for one rather pay a little more for something. I`ve always been that way. I don`t even look at prices when I shop for food, if I like it, I buy it.

Also, I`m looking into just making a handful of things really well and thats it. I don`t want to be the end all, be all.
 
Ernest,

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> I`m looking into just making a handful of things really well and thats it. </div></BLOCKQUOTE>
Good idea, especially when you're just starting out. Find a niche, provide quality food AND service. There's always a market for that. Good luck, let us know how things turn out.

Paul
 
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Ernest Buckley:
This is a good debate. I for one rather pay a little more for something. I`ve always been that way. I don`t even look at prices when I shop for food, if I like it, I buy it.

Also, I`m looking into just making a handful of things really well and thats it. I don`t want to be the end all, be all. </div></BLOCKQUOTE>


Ernest, where do you find Boston Butts in Bklyn???
 
Hey Danmarks-
I buy pork shoulder in BJs (one of those wholesale joints). Usually a 9 pounder.

I was turned on to pulled pork at a local joint here but they closed shop. Since then, I was determined to make my own.
 
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by danmarks:
ah, i suspected... once again BJs club is better than Bklyn Costcos.

u go to the BJ along the belt pkwy? </div></BLOCKQUOTE>

Don`t know if its better... I just go to BJs because its closer. From my experiences with Costco when my mother in law shops there, the meat is quite good.
 
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