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Default catering charge formula?



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


  #2 (permalink)   Report Post  
Dimitri
 
Posts: n/a
Default


> wrote in message
...
>
>
> 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


Two things:

1: Read here.
http://www.cateringmagazine.com/feature1.html

2. Since you are charging contact your insurance agent and let him/her
know what you are doing and how to protect yourself.

Dimitri


  #3 (permalink)   Report Post  
Sheryl Rosen
 
Posts: n/a
Default

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.

  #4 (permalink)   Report Post  
Sheryl Rosen
 
Posts: n/a
Default

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.

  #5 (permalink)   Report Post  
Sheryl Rosen
 
Posts: n/a
Default

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.



  #6 (permalink)   Report Post  
PENMART01
 
Posts: n/a
Default

wrote:
>
> 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?


There's no real difference whether catering one entree or a ten course
dinner... price is based on exactly the same criteria; cost of all ingredients
and materials (inclusive of but not limited to servingware, cleaning supplies,
cooking/reefer/lighting utilities, rent, etc), plus time (labor), and possibly
transportation (with an added cost beyond a certain distance). You may want to
at first make a work sheet listing every detail you can think of with an
assigned cost... but the general rule is simply to cost out all ingredients and
triple that cost... and charge a minimum (say $50) regardless how small the
order. And if you intend to do this as a business then you need to include
liability insurance, cost of an accountant, cost of permits, printing, phone,
etc. Your system of "cost plus $10/hr" is not even break even charitable, it's
called taking a loss, a huge loss.


---= BOYCOTT FRANCE (belgium) GERMANY--SPAIN =---
---= Move UNITED NATIONS To Paris =---
*********
"Life would be devoid of all meaning were it without tribulation."
Sheldon
````````````
  #7 (permalink)   Report Post  
PENMART01
 
Posts: n/a
Default

wrote:
>
> 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?


There's no real difference whether catering one entree or a ten course
dinner... price is based on exactly the same criteria; cost of all ingredients
and materials (inclusive of but not limited to servingware, cleaning supplies,
cooking/reefer/lighting utilities, rent, etc), plus time (labor), and possibly
transportation (with an added cost beyond a certain distance). You may want to
at first make a work sheet listing every detail you can think of with an
assigned cost... but the general rule is simply to cost out all ingredients and
triple that cost... and charge a minimum (say $50) regardless how small the
order. And if you intend to do this as a business then you need to include
liability insurance, cost of an accountant, cost of permits, printing, phone,
etc. Your system of "cost plus $10/hr" is not even break even charitable, it's
called taking a loss, a huge loss.


---= BOYCOTT FRANCE (belgium) GERMANY--SPAIN =---
---= Move UNITED NATIONS To Paris =---
*********
"Life would be devoid of all meaning were it without tribulation."
Sheldon
````````````
  #8 (permalink)   Report Post  
PENMART01
 
Posts: n/a
Default

wrote:
>
> 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?


There's no real difference whether catering one entree or a ten course
dinner... price is based on exactly the same criteria; cost of all ingredients
and materials (inclusive of but not limited to servingware, cleaning supplies,
cooking/reefer/lighting utilities, rent, etc), plus time (labor), and possibly
transportation (with an added cost beyond a certain distance). You may want to
at first make a work sheet listing every detail you can think of with an
assigned cost... but the general rule is simply to cost out all ingredients and
triple that cost... and charge a minimum (say $50) regardless how small the
order. And if you intend to do this as a business then you need to include
liability insurance, cost of an accountant, cost of permits, printing, phone,
etc. Your system of "cost plus $10/hr" is not even break even charitable, it's
called taking a loss, a huge loss.


---= BOYCOTT FRANCE (belgium) GERMANY--SPAIN =---
---= Move UNITED NATIONS To Paris =---
*********
"Life would be devoid of all meaning were it without tribulation."
Sheldon
````````````
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Alexis Siefert
 
Posts: n/a
Default

In article >,
Sheryl Rosen > wrote:

> 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

>


Generally? Triple the real cost of ingredients. If I can get
ingredients on sale, that's additional profit for me. If there are
exceptional issues with a particular job ("it needs to be done *now*"
type of jobs) then I'll factor that into the final bid.

i was also, a few years back, introduced to the concept of the 'grief
tax.' When I bid any job, I take into account the 'grief' feeling that
I'm getting from the client. If i get the impression during the initial
meetings that they're going to be PITA clients, I'll generally add in a
bit for the hassle factor.

However, it might be important to realize that I'm not a full-time
caterer. If i don't get this particular bid, it's only rarely
make-or-break for me, and I most often cater for friends and
friends-of-friends. My catering is all side-gig (although during the
leaner, no-regular-income, summer months, I do push harder for those
jobs and I find I have a higher tolerance for 'grief' <g>).
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