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Pricing help

 
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Firefighter_Chris
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PostPosted: Wed Jan 12 11 1:30 am    Post subject: Pricing help Reply with quote

Ok guys heres the deal. Our menu is set up for 1 meat, buns, 2 sides, table ware and serving trays, sauce, pickles for $7.50 a person. I just had a request for an extra meat and was curious how to price it? Do I just add a little extra or what? Please help.
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PostPosted: Wed Jan 12 11 1:32 am    Post subject: Reply with quote

What type of meat did they request?
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Firefighter_Chris
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PostPosted: Wed Jan 12 11 1:36 am    Post subject: Reply with quote

Well they are wanting our normal price plus what the price is for an extra meat. For ribs we already have a 1.50 per person added to the normal 7.50 a person.
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SoEzzy
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PostPosted: Wed Jan 12 11 1:43 am    Post subject: Reply with quote

What portion of your $7.50 is the meat the first time round?

I'd double that part of your bill then take off 10% for luck and see if they still want it.

Though the extra is better to know the type of meat as it's not bad if you can charge steak prices for pork loin, but it sure is a pain getting pork loin prices for steak!
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PostPosted: Wed Jan 12 11 1:45 am    Post subject: Reply with quote

Depending on cost/prep/cook time for the other meat I think you'd be fine at $1-1.50 per additional meat per person. You wouldn't need to go all out with the first meat by offering two.
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Firefighter_Chris
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PostPosted: Wed Jan 12 11 1:52 am    Post subject: Reply with quote

It is 3 servings per pound is what we go off of. Speaking with the lady we are planning on enough for each person to have at least one or the other and some to have 2 sandwhichs. The meats I told her were pulled pork, chopped brisket, chicken thighs/legs, or spare ribs. Nothing real fancy. brisket and pulled pork are easy chicken and ribs take a little more of course.
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Harry Nutczak
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PostPosted: Wed Jan 12 11 1:56 pm    Post subject: Reply with quote

You need to know your costs before trying to determine your selling price.

So figure your portions, type of meat, yields, rawweights, and cost per pound, and we can work forward from there.
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BBQMAN
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PostPosted: Wed Jan 12 11 7:59 pm    Post subject: Reply with quote

Harry Nutczak wrote:
You need to know your costs before trying to determine your selling price.

So figure your portions, type of meat, yields, rawweights, and cost per pound, and we can work forward from there.


Agreed!

Although my formula is a little different than Harry's, our prices come in (usually) remarkably the same.
Quote:

It is 3 servings per pound is what we go off of. Speaking with the lady we are planning on enough for each person to have at least one or the other and some to have 2 sandwhichs. The meats I told her were pulled pork, chopped brisket, chicken thighs/legs, or spare ribs. Nothing real fancy. brisket and pulled pork are easy chicken and ribs take a little more of course.


I could not disagree more.

Brisket and pulled pork cook twice as long (if not more).

Furthermore, regardless of where you live, brisket is many times more expensive than any of the other choices here (particularly chicken).

That being said additional meats at $1.50 will not be profitable no matter what formula you use.

I offer a two meat meal for $10.95, and offer (most) additional meats at $3.00 PP.

Once again, eliminating one of those meats at $3.00 a person puts me close to your original one meat meal in price.

Pricing is dictated by a lot of things due to regional differences, competition, and cost of goods.

But added meats at $1.50 a person doesn't work for me.

YMMV, MDN.

Footnote: splitting entree' offerings (some of this for some, some of that for the others) almost always never works. The guy that doesn't get one (or the other) will bitch that they didn't get any.
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daddywoofdawg
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PostPosted: Thu Jan 13 11 12:52 am    Post subject: Reply with quote

If you mean a rib meal is a 1.50 pp more ok,but if you mean you will throw on some ribs for a 1.50 more is that for one bone?if not tell me where you can get free ribs at!LOL. I would think how much do I charge for just meat becuase that is what you will be selling is extra meat.
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Geronimo
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PostPosted: Thu Jan 13 11 1:47 am    Post subject: Reply with quote

Here is how I look at it.... 1 meat you figure on say... 5-6 ounces per person average.

Add a second meat and you still offer each guest 6 ounces (total) average.

You are not (or shouldn't) offer each guest 12 ounces of meat just because there is a second meat.

The same applies the more meat choices you offer.

The same goes for side dishes....the more "choices" the less of each you need to provide using an "average".

Another way to see it....serving PP only, every guest will want a sandwich...."make it BIG, I am hungry" (the guest tells you). So you pre-planned ahead of time to make 5-6 ounce sandwiches and maybe 25% of them to return for seconds.

Now lets say you add ribs with that sandwich, you might want to (or at least I do) lower my "average" on the pp because I am going to add 2 ribs per person to go along with the PP but in reality, #1. I know (from experience) that not EVERY guest is going to take both meats, #2. the ones that do take both meats usually don't max out (want the full amount I figured) they usually want "a little" of each. So I am able to reduce my raw meat purchases before I even start.

If I am serving say... PP and chicken, I figure on 1 (4 oz) PP sandwich per person and 1 pc of chicken per person (chicken cut 8/1) and I DO NOT add extra meat because I know (from experience) that I will have left over meat for anyone that whats seconds...or more.

One more example, Serving Tri-Tip and chicken..... Tri-Tip cost me $3.89 lb and I figure on 4 oz per guest. I see very little shrinkage (loss) during cooking so I don't need to account for loss.

So figuring 4 oz serving (as a second meat) with a cost of $3.89 lb, my "cost per serving" on the Tri-Tip is $.97. So I would add $2.50-$3.00 per guest to add this meat to an already quoted menu to cover all my costs associated with getting this meat onto the serving line.

If I was serving Tri-Tip by itself, I would offer 6-8 oz per guest.
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Pit Boss
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PostPosted: Thu Jan 13 11 2:31 am    Post subject: Reply with quote

All this is well and good...but it still amazes me the amount of people in business that have no idea how to price their product.
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Firefighter_Chris
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PostPosted: Thu Jan 13 11 10:16 am    Post subject: Reply with quote

Thanks guys. I do mean an extra 1.50 per person on top of that 7.50 if they want ribs.

Pit boss sorry we aren't all perfect and all gotta start somewhere. Thanks for chiming in with help here though I appreciate it.
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BBQMAN
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PostPosted: Thu Jan 13 11 8:17 pm    Post subject: Reply with quote

Firefighter_Chris wrote:
Thanks guys. I do mean an extra 1.50 per person on top of that 7.50 if they want ribs.

Pit boss sorry we aren't all perfect and all gotta start somewhere. Thanks for chiming in with help here though I appreciate it.


You won't make any money on that deal, unless it's "Rib" not "Ribs".

My cost for a slab of spares is right around $10.00 and that includes the cost of the meat, rub, and fuel.

But not labor.

With roughly 10-12 usable ribs on a rack, giving them one rib each will net you maybe $18.00.

I truly know of no raunt (and we are talking catering here) that is offering two meats and two sides for $9.00......................

I don't mind working, and I don't mind working hard. I do mind working and not being able to pay myself a fair wage.

Don't take my word for it, try it for yourself and get back to us.
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Pit Boss
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PostPosted: Thu Jan 13 11 8:32 pm    Post subject: Reply with quote

Chris, how did you come up with your original pricing?

This has nothing to do with being perfect (your words, not mine). Everyone does indeed have to start somewhere.
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Firefighter_Chris
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PostPosted: Thu Jan 13 11 9:00 pm    Post subject: Reply with quote

That is not 2 meats for $9 that is the original 1 meat price of $7.50 but if they want that one meat to be ribs it takes the price of that 1 meat and two sides price up to $9.00.

I got two other caterers I am competeing with around here and they are both raunts. One for 2 meats enough for each person to have one or the other and 2 sides they are charging $7.99 a person and add another $1.50 to that cost if they want ribs as a choice. The other is a franchise raunt and they are charging for a 5oz portion of meat and 10oz of sides between $6.40 for up to 50people and as low as $5.40 for up to 200 people. That is what I am having to fight right now.
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BBQMAN
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PostPosted: Thu Jan 13 11 9:18 pm    Post subject: Reply with quote

I follow along with you now.

However:

Quote:
Ok guys heres the deal. Our menu is set up for 1 meat, buns, 2 sides, table ware and serving trays, sauce, pickles for $7.50 a person. I just had a request for an extra meat and was curious how to price it? Do I just add a little extra or what? Please help.


This is what I based my comments on!

A little (actually a lot) cornfusing.
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Pit Boss
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PostPosted: Fri Jan 14 11 12:13 am    Post subject: Reply with quote

I'm with bbqman...I understand (now) what you are asking, but that is not how you originally worded it.

You can not, in my circumstances, compete with restaurants...especially high volume restaurants.

Do your own pricing. You MUST make enough profit to be...well...profitable.

As a caterer, you have to market yourself as offering something the restaurant guys don't. And that reason will be what allows you to charge a premium price.
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daddywoofdawg
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PostPosted: Fri Jan 14 11 12:43 pm    Post subject: Reply with quote

Pit Boss wrote:
I'm with bbqman...I understand (now) what you are asking, but that is not how you originally worded it.

You can not, in my circumstances, compete with restaurants...especially high volume restaurants.

Do your own pricing. You MUST make enough profit to be...well...profitable.

As a caterer, you have to market yourself as offering something the restaurant guys don't. And that reason will be what allows you to charge a premium price.

Very good point I don't think your buying meat by the truck load like the others,but your not giving them sysco's microwave food either.If your offering one or the other then go PP or chicken.bump it up your buck fifty and check your cost and see if you could live with it.
A catering trick to keep meat use down is in a buffet line place your breads at the beginning followed by sides and the cheapest meat then your most expensive at the very end.the reason is your plate will be full by the time you get to the other end so you won't take as much.Check a buffet line next time your around one.
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Poppa's PTL Club
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PostPosted: Sat Jan 15 11 12:17 am    Post subject: Reply with quote

That's the method I use (meats last). I find that if you put them up front, people put more meat on their plate than they really want (including me)

As for competing with restaurants, you do need to sell your food and be honest with yourself about whether or not you deserve a premium price. I sell my events based on client recommendations and the fact that I cook from scratch and the food is reminiscent of a home style event cooked by the best food your fattest old aunt makes (absent the baked beans, which usually begin with a can of Bush's, although they don't end there). The meat is the star, but if the only thing you are doing is opening a can for the sides, it's difficult to demand a premium price for the overall experience.

Is your food comparable to the restaurants in question or is it superior? You have to stay competitive, but you also have to know what your expected profits are and what you're willing to accept as a return. Personally, I think too many people are willing to try and match a Sonny's pricing sheet and only clear a hundred bucks for 10+ hours of work just so they can say they are a caterer.
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Firefighter_Chris
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PostPosted: Sat Jan 15 11 12:38 am    Post subject: Reply with quote

Thanks guys thats great advice and never thought of it like that. I do feel and so do my current customers that my food is 10times better than these resturants. I will have to work on selling new customers on that same thought. Thanks for all the help.
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