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in article , at
wrote on 11/5/04 2:33 PM:

>
>
> Dear Group,
>
> I have done a bit of amateur(What does this mean!?) catering through
> the years.Just more of a hobby really cos I am the church cook and
> have done wedding planner stuff. I usually have charged cost plus
> $10.00 an hour for my time. (Less if the people were on tight
> budgets.)
> My question is how do I charge for preparing just an entree'?
> I am making 4 large lasagnas(@ 60 servings) and am in a quandry.
> Do any of you have a formula for pricing?
> thanks in advance.
> Sue
>
>

1. Don't undervalue your time and talents, for one thing.

2. Calculate the "cost" at regular prices for the ingredients, not the sale
prices you might actually have paid. Because if you set the price based on
sale prices, what if you have to make that same lasagna 3 months from now,
when ricotta cheese costs the regular price of $6 for a 2 pounder, rather
than "Buy one get one free" this week? You need to have a set price list if
you're going to do this on any kind of regular basis. And if they like your
food, you will get repeat business. It's important to keep prices
consistent.

3. Don't forget to calculate a profit margin into the ingredients, too.

4. Don't feel bad about calculating a profit margin into the ingredients.
The $10 (or more) and hour you charge is for LABOR. It's not profit.
Unless--are you doing this out of the goodness of your heart? If you're
doing it to make money, you really should calculate a profit margin. 10 or
15% is standard. (If your ingredients cost $20, you could easily bill them
$22)

When you go to get your car repaired, they charge you for parts and labor
separately, don't they? And don't think they don't factor in a mark-up on
the parts, either! It's the same with most other service businesses.

In catering, the "parts" are the groceries that go into the recipes you
prepare. You are entitled to a profit on that.

Make sure you add in the time you take to shop into your billable hours.

Here's the thing about catering. YOU are shopping and cooking so they do
not have to. Unless your intent is donating your services, why shouldn't
you get paid for that? Your time is valuable and if you weren't shopping and
cooking for their event, you'd be doing something else.