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Big sale on Kielbasa..
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Louie3
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PostPosted: Wed Nov 11 09 4:57 am    Post subject: Reply with quote

SStory wrote:
I have to agree with marv about catering vs vending.

With catering, the customer is calling the shots -- what is being served, when, for how many and where. The customer does his "shopping" by getting quotes from various competitors. Your quote to the customer is based on an up-front overall head count (so you are guaranteed the number of plates). You are dealing with 1 customer that you have to convince your quote is the best (even if it is higher than your competitor).

With vending, you are hoping you are selling what the customers are wanting. You also have other competitors in that same venue so you have to be competitive on an individual order (not based on the total number of customers you'll serve like you do with catering). You have no committment with the customers like you would for a catered gig. So you have to make your offer appealing to the customer or they'll just go on to the next vendor. You are dealing with many customers where some will not object to paying $.50 more for your sammich versus the next vendor, but some customers will just walk on by.

For catering, you only have to pull the wool over 1 person's eyes. For vending, you have to pull the wool over lots of people's eyes.



I don't necessarily agree with you, but it's a interesting way to explain it. Wink
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Harry Nutczak
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PostPosted: Wed Nov 11 09 6:39 am    Post subject: Reply with quote

SStory wrote:
I have to agree with marv about catering vs vending.
For catering, you only have to pull the wool over 1 person's eyes. For vending, you have to pull the wool over lots of people's eyes.


So the difference is how many people you need to try and fool?
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marvsbbq
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PostPosted: Wed Nov 11 09 8:04 am    Post subject: Reply with quote

Louie wrote:
SStory wrote:
I have to agree with marv about catering vs vending.

With catering, the customer is calling the shots -- what is being served, when, for how many and where. The customer does his "shopping" by getting quotes from various competitors. Your quote to the customer is based on an up-front overall head count (so you are guaranteed the number of plates). You are dealing with 1 customer that you have to convince your quote is the best (even if it is higher than your competitor).

With vending, you are hoping you are selling what the customers are wanting. You also have other competitors in that same venue so you have to be competitive on an individual order (not based on the total number of customers you'll serve like you do with catering). You have no committment with the customers like you would for a catered gig. So you have to make your offer appealing to the customer or they'll just go on to the next vendor. You are dealing with many customers where some will not object to paying $.50 more for your sammich versus the next vendor, but some customers will just walk on by.

For catering, you only have to pull the wool over 1 person's eyes. For vending, you have to pull the wool over lots of people's eyes.



I don't necessarily agree with you, but it's a interesting way to explain it. Wink


No one is saying "you have to agree", he is just giving you his idea on the subject. He is not claiming his thoughts are the ONLY thoughts allowed....think (and do) what you want.

If you want to charge the same price for catering vs vending and it works for you....go for it.

BTW, I was asked my idea of the difference between catering and vending so here it is...


Catering, you are cooking for a pre-determined number of guests and all of the meals are pre-sold (usually purchased by the host/hostess). You know how much $$$ you are making before you ever start shopping for supplies and before you arrive at the event.

Vending, you are cooking for an UN-determined number of guests, and you are selling to one individual at a time. You have NO idea how much much $$$ you will make so when you shop for supplies it is anybody's guess.

I know from the day I book a catering gig how much $$$ I will gross and how much profit I will make.

Vending....not so.

I am not saying one is better than the other, I just choose to focus on the catering side and make enough doing that where I don't have to take the gamble of vending.
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Louie3
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PostPosted: Wed Nov 11 09 8:15 pm    Post subject: Reply with quote

Thanks marv, but you were asked "Why would you charge more for catering and less for vending the same food"?

Aw well we hashed this to death, onward and upward.. Wink
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marvsbbq
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PostPosted: Wed Nov 11 09 11:18 pm    Post subject: Reply with quote

Louie wrote:
Thanks marv, but you were asked "Why would you charge more for catering and less for vending the same food"?

Aw well we hashed this to death, onward and upward.. Wink


And I answered with this:
marvsbbq wrote:
Simple....."perceived value" Shocked Even if you cooked the same menu for a catering gig and a vending gig, you can realistically expect to be able to charge more for the catered meal than you could the vended meal....perceived value means one EXPECTS the catered meal to cost more than the other and/or feels it is worth more.

perceived value
Definition

Customer's opinion of a product's value to him or her. It may have little or nothing to do with the product's market price, and depends on the product's ability to satisfy his or her needs or requirements.


source: http://www.businessdictionary.com/definition/perceived-value.html


But for what ever reason, you were not satisfied with my answer.. Shocked Shocked
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Louie3
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PostPosted: Thu Nov 12 09 12:41 am    Post subject: Reply with quote

I was hoping you'd be more specific, but thanks anyway. Wink
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Harry Nutczak
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PostPosted: Thu Nov 12 09 12:58 am    Post subject: Reply with quote

Well how about this scenario, you do a vending event, you have prospective client that likes your food, and wants to book you to cater an event for them. What explanation would you use when they ask why the same item is going to cost them more for a catered event than it did at the vending event?

IE;
You selling pulled pork sammies for $5.00 at a vending event, now you tell him you're charging him $15.00 for the same friggin sandwich, but it also includes the same cost as the sandwich for each side item your including. I have made sides that were priced at $5.00 each, but it was not slaw and beans.
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marvsbbq
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PostPosted: Thu Nov 12 09 1:23 am    Post subject: Reply with quote

Harry Nutczak wrote:
Well how about this scenario, you do a vending event, you have prospective client that likes your food, and wants to book you to cater an event for them. What explanation would you use when they ask why the same item is going to cost them more for a catered event than it did at the vending event?

IE;
You selling pulled pork sammies for $5.00 at a vending event, now you tell him you're charging him $15.00 for the same friggin sandwich, but it also includes the same cost as the sandwich for each side item your including. I have made sides that were priced at $5.00 each, but it was not slaw and beans.


I guess my answer would be... I don't vend so I haven't had that scenario come up.. Shocked Wink

If I did vend, I would NOT offer the same menu as my catering menu and thus would avoid such a scenario.

But that is just me. Others may feel differently and therefore run their business differently.
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mutha chicken bbq
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PostPosted: Thu Nov 12 09 1:55 am    Post subject: Reply with quote

Harry Nutczak wrote:
Well how about this scenario, you do a vending event, you have prospective client that likes your food, and wants to book you to cater an event for them. What explanation would you use when they ask why the same item is going to cost them more for a catered event than it did at the vending event?.


Trying to stay away from the fray, But......

I have run into this exact situation, My justification for a higher price is "I do more $$ vending than you ( client) are paying for me to not be open and selling to my regular customers". Thus a higher price and percieved value. I need to make x amount a day and this is my cost.

wether or not I am actually making more per day is my buisness, Not theirs. It also creates havoc from a buisness stand point as I have regular customers who expect me to be at my stand, When I am not it is a negative impact on my buisness.

For what ever reason, Most accept it, Those who don't shop somewhere else, And that is fine with me, Can't get every catering.
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