If you are a start-up caterer, or you’ve just opened your catering firm, chances are, you have a very limited knowledge as to how much to charge your clients. Surely, it shouldn’t be too cheap that any profit is already negligible, nor should it be too expensive that clients will balk at hiring your service. Indeed, pricing is really crucial since it will determine your business’ profitability and over-all financial stability. That is why, any freshman caterer should spend some time to learning the trade of catering event costing so that the next time a client asks how much will it cost him to feed 60 or so people, you won’t play guessing games, but rather have a solid, reasonable figure to equate quality service with just the right cost.

1. By Anthony Franco

2.  If you are a start-up caterer, or you’ve just opened your
catering firm, chances are, you have a very limited
knowledge as to how much to charge your clients.
 It shouldn’t be too cheap that any profit is already
negligible, nor should it be too expensive that clients will
balk at hiring your service.
 Pricing is really crucial since it will determine your
business’ profitability and over-all financial stability.

3. Take note of the details of the event
 Before you offer your price, always take time to sit
down and discuss the details of the event with your
client.
 Make sure you jot down everything that he’s been
telling you.
 Make sure everything is itemized and well-spelled out
in the contract.

4. Breaking down the cost
The usual catering proposal has to be itemized according to
the following details:
 Menu
 Beverages
 Rental charges
 Staffing
Any additional expense
 Taxes
Don’t forget to specify everything that’s going to be included,
from the basics, down to the extras and freebies

5. Do the head count
 If you think that a package deal is not an ideal option,
then try pricing your service based on the number of
guests that your client will be having.
 Tell your client that every set has a minimum and
maximum number.

6. Offer your price on a cascading manner, like offering a
per head cost between 50 to 100 people, while offering a
little discount for guests between 100 and 200. On the
other hand, try giving a larger discount if guests
number between 200 and 400 people.

7. Research the market rate in your area
 The food service industry has a highly competitive
landscape and clients will always go for the one that
offers them the best value for money.

8. And don’t forget this…
 See to it that you thoroughly read the details of your
contract before signing a deal with your client.
 Make sure that you have informed your client
of all additional charges.

9.  What you’ve discussed verbally should be well-stated
on paper so that everything is transparent and that you
have your recourse should your client raise any issues
with regards to your service.
 Always write down the costing, have it checked and
signed by your client to protect your interest, as well as
make sure that he gets only the best service that you
can offer.

10. As the Product Specialist of Better Cater, I’m working
hard to develop catering software that will give the
caterers power to control food cost and give you the
ability, knowledge, and confidence to do your job
perfectly and to your specification.
-Anthony Franco
Product Specialist, Better Cater
www.bettercater.com