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Sometimes you almost gotta laugh at potential clients...
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SoEzzy
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PostPosted: Apr 11 2007    Post subject: Reply with quote

I think a lot of the real taste of this pudding is in the perceived taste of the eating, to mix my metaphors a little.

There is to all intents and purposes NO, none, zero, zip, nada cash profit in doing this wedding job, but there is the advertising against possible future earnings to be considered. A job for 200 in your local area, may be worth doing when you are starting out, but it might not be worth doing, either once you are an established name in the neighborhood, or are actually the #1 caterer in the area.

There is a certain amount of feel good factor, that I offset against current or future profits, I will help out when and where I feel able to, to offer my expertise and advise, at little or no cost, as a helping hand, but we each have to set those limits that we feel comfortable with, as to what and how much non-profit, (possible good / low cost advertising), we offer.

I have and will continue to offer my services on a loss leader basis, if and when it suits me. There is no one else alive who can convince me to do it when I don’t want to; not even “She who must be obeyed”. I will make my self scarce when it was supposed to all happen, and take my punishment later if I have to, but if I think it is a worthwhile investment of my time and efforts, there isn’t anyone who can talk me out of it either.

There isn’t a right and wrong in this situation IMO, you do what you do, for the reasons you choose to or choose not to do it, and that’s all she wrote at the end of the day.
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G's BBQ
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PostPosted: Apr 11 2007    Post subject: Reply with quote

marvsbbq wrote:
Like I said "At one time, I would sell the farm for $500 and smile all the way to the bank....kicking my a$$ all the way for taking the LOW paying job"
Now I take a catering job, get paid...smiling all the way to the bank...patting myself on the back saying GOOD JOB MARV!!!

When you are in the begining stages of your catering career, you THINK you have to take these low paying jobs to 'Get your name out there'. I have done same thing and looking back realize that it was my REPUTATION for GREAT FOOD and GREAT SERVICE that got 'My name out there' and NOT because I discounted the meal. For that, it is is THEM that are 'laughing all the way to the bank' saying....ha ha ha I got them to meet MY price!

Yes, I have done these things (discounts) but now with my experience and expertise, I am here to help other aspriing caterers that you DON'T have to do that!! You just need to convience them that YOU are the BEST at what you do and deserve to be paid for it.

This is a saying that I came up with and use quite often, feel free to use anyway you see fit. I have used it as verbal and corespondence as well...

You and your guests will enjoy "Barbecue better than the best you've ever had" provided by the ever sought after..Marv's Marvlus Pit Bar-B-Q. Our reputation preceeds us as the area's #1 BBQ caterer.

I do my name in red because that is my color on my website AND red is kind of my color on trucks and all my trailers are red (bbq's are black)
kind of trying to tie it all together.

I hope all of this helps someone out there in BBQ land... Wink


Yup, I agree. May I also say once people think they can get that price all the time, you are screwed. it will be the "but you only charged me this when you did my last event" and "its a bit higher now" and now you have a pissed off customer.

Your pricing will establish how you are perceived in your quality of product and customer service. Its basic marketing 101.

We all have done the discount thing, but you soon realize it does more damage than good. Its a lot of hard work. I dont want to leave that "Cheap" impression on my customer. I want to have them see that they received value & quality and you can do that without giving the store away.
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marvsbbq
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PostPosted: Apr 11 2007    Post subject: Reply with quote

Well said SoEzzy, well said.

And yes, I AM the #1 BBQ caterer in my area. BECAUSE....I was the one that conducted the poll and I was the ONLY one that I asked to vote Laughing

You can SAY anything you want...there is no "truth in advertising" as there is "truth in lending" laws Wink

The van is a little wet from rain so the lettering looks a bit fuzzy...but you get the idea.


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G's BBQ
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PostPosted: Apr 12 2007    Post subject: Reply with quote

Where did you get those card holders on the truck and van?
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marvsbbq
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PostPosted: Apr 12 2007    Post subject: Reply with quote

GordonsBackyardBBQ wrote:
Where did you get those card holders on the truck and van?


I have mentioned these before. They are VERY effective. You are able to 'give out' cards without you even being present.. Wink Although I caught a 'kid' at Costco one time taking a whole handful. I walked over to him (about 10 years old) right in front of his mom and point blank asked him "what are you going to do with all of those cards"? His mom made him give them back and boy was SHE... Embarassed Embarassed Embarassed

I have had people run up while I was stopped at TRAFFIC LIGHTS and grab a card. Supprised how often I have to fill them...and YES they DO generate business. They are $30 for a set of 2 but I always order extras incase of breakage...never had one stolen though, that is good.. Very Happy

Here is the link to their site... http://cardpockets.com/
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OddThomas
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PostPosted: Apr 12 2007    Post subject: Reply with quote

marvsbbq wrote:
You can SAY anything you want...there is no "truth in advertising" as there is "truth in lending" laws


Hi,

Don't be silly. Of course there are truth in advertising laws. Very Happy

Additionally, I didn't mean to get everyone's feather's ruffled--there are some thin-skinned folks on this forum for sure. All I said was, at a glance it seemed it was possible to pull off, not that the gig was gonna set you up for retirement. Some of you guys act like the lady should be drawn a quartered for even suggesting such a thing was feasible.

If you're at the point where 70-80% profit margins on small jobs aren't worth your time or in Marv's case, in a position where you have to work on site and therefore have more overhead and higher prices, certainly no one could blame you for turning down the job.

Again, I was just trying to see if someone else thought they could have helped this lady and if so, how.
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BBQMAN
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PostPosted: Apr 12 2007    Post subject: Reply with quote

No hard feelings here OddThomas! Very Happy

I think you also meant 20% profit margin? There is certainly not a 70-80% profit margin on the above mentioned budget! My average profit margin is around 30% on most jobs.

I thought I did offer help for this gals predicament. It's called 2 for $2....................... Laughing

Most everyone comes here to offer help, and get some too. It is nice to have the other side of story represented! Wink

It is however hard to play "devils advocate" if you truly don't have an understanding of how this business works. We can only present it from our point of view- nothing more, nothing less. Your milage may always very depending on the given driving connditions. Very Happy

It is certainly always my intention to help el-cheapo clients see the light, but some make that more difficult than others! Wink Very Happy
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Purple Haze
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PostPosted: Apr 12 2007    Post subject: Reply with quote

Great Thread! This post may be a few responses too late but here's my take. After reading this thread again from the beginning, I don't think this thread is about business, or profitability, or even numbers. This thread is about customer service. Without a doubt, I think we all agree that no one should take a job that would cause a loss or otherwise waste time you don't have. The difference of opinion (if you want to call it that) is in what do you do with the customer after you have identified them as someone outside of your ideal target market (for whatever reason). Do you disconnect quickly ... or try help some ... or bite the bullet for humanity? All three are equivalent choices that free enterprise allows us to make. And after looking through the thread all three equivalent (and correct) avenues were chosen.

Smoke free or die. Very Happy
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G's BBQ
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PostPosted: Apr 12 2007    Post subject: Reply with quote

BBQMAN wrote:
No hard feelings here OddThomas! Very Happy

I think you also meant 20% profit margin? There is certainly not a 70-80% profit margin on the above mentioned budget! My average profit margin is around 30% on most jobs.

I thought I did offer help for this gals predicament. It's called 2 for $2....................... Laughing

Most everyone comes here to offer help, and get some too. It is nice to have the other side of story represented! Wink

It is however hard to play "devils advocate" if you truly don't have an understanding of how this business works. We can only present it from our point of view- nothing more, nothing less. Your milage may always very depending on the given driving connditions. Very Happy

It is certainly always my intention to help el-cheapo clients see the light, but some make that more difficult than others! Wink Very Happy


Exactly.
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G's BBQ
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PostPosted: Apr 12 2007    Post subject: Reply with quote

OddThomas wrote:
marvsbbq wrote:
You can SAY anything you want...there is no "truth in advertising" as there is "truth in lending" laws


Hi,

Don't be silly. Of course there are truth in advertising laws. Very Happy

Additionally, I didn't mean to get everyone's feather's ruffled--there are some thin-skinned folks on this forum for sure. All I said was, at a glance it seemed it was possible to pull off, not that the gig was gonna set you up for retirement. Some of you guys act like the lady should be drawn a quartered for even suggesting such a thing was feasible.

If you're at the point where 70-80% profit margins on small jobs aren't worth your time or in Marv's case, in a position where you have to work on site and therefore have more overhead and higher prices, certainly no one could blame you for turning down the job.

Again, I was just trying to see if someone else thought they could have helped this lady and if so, how.


Has nothing to do with thin-skinned. Its a reality. I certainly dont see where the 70 to 80 % is in a 2.50 meal. Laughing

Thats a food cost of 50 to 75 cents...Dont think that needs to be explained.

As BBQman suggested....2 for 2 at Micky D's or may I suggest a box of M & M's
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Harry Nutczak
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PostPosted: Apr 12 2007    Post subject: Reply with quote

Ok, so someone calls for a job, you cannot meet their cost requirements. What do we do?

me I do not know which way it would go. of course I would try to help (A karma thing) but if there is no way that i could even pocket enough nickels for the Casino for an hour of play time I would need to decline the job. I would say I have that date filled so I do not hurt her feelings. I wold not say anything about being cheap or do anything to make the caller feel bad. you never know who might be a part of that party or helping arrange it.

Ok, do you offer referrals to other caterer's? What if the other caterers do decide to take the low money job, and serve them complete garbage in return. So you are the one that referred them, how does that reflect on your business and food quality? I would connect the dots and think "That food really sucked, but "Nutzcak's Nasty-Q Catering suggested them. do they suck that much too? we will need to avoid them in the future then"

I think BBQMAN has the best route, rationalize with the customer that does not realize costs, use "McDogShizzles" as a logical reference point and state how much a happy-meal will cost by visiting mcdogshizzles, and then ask how can you expect a quality (Non mass-produced) product to be able to compete with pricing less than a happy meal. (in a nicer way of course)

So, making the customer realize that it is just not possible and remaining nice (no condescending attitude) they might be able to raise more coin. Maybe it was the brides father footing the bill, and 50 years ago that is what things cost back then? And the father is making her call around because he is just that clueless, he has the money to pay for a real event, but is just so out of touch with reality he might not realize modern day cost's.

So, ask for what date last, and be able to use that as a nice way out of declining a job. yes it is a lie, but you cant be in 2 places at the same time.
If I was a less then wealthy bride, I would feel less embarrassed by a date already taken then being told that I do not have enough money to get a caterer.

maybe they will have the reception at a later date when they can afford it then and call you because you treated them nicely.

Any comments on that theory??
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adolpho
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PostPosted: Apr 12 2007    Post subject: Reply with quote

Purple Haze wrote:
Great Thread! This post may be a few responses too late but here's my take. After reading this thread again from the beginning, I don't think this thread is about business, or profitability, or even numbers. This thread is about customer service. Without a doubt, I think we all agree that no one should take a job that would cause a loss or otherwise waste time you don't have. The difference of opinion (if you want to call it that) is in what do you do with the customer after you have identified them as someone outside of your ideal target market (for whatever reason). Do you disconnect quickly ... or try help some ... or bite the bullet for humanity? All three are equivalent choices that free enterprise allows us to make. And after looking through the thread all three equivalent (and correct) avenues were chosen.

Smoke free or die. Very Happy


That's what I was getting at. I wonder how that lady would feel if she happens to google bbq catering (looking for another caterer) and to her horror, this forum pops up and she reads her story on the forum, with Marv's website and all to confirm it's her he's talking about. I honestly think she didn't know what to expect. BBQMAN's idea to help the potential customers understand by giving them a comparison to Mickey D's is educational. But to just say sorry and end it at that and then post "Sometimes you almost got to laugh..." is a bit harsh. Then again, if you got the market cornered, you can be harsh.

As far as pricing yourself cheap and people expecting it, that's totally what you make of it. If you lose them as a client next time around, then they are just being cheap. But if you did an awesome job and the food was great, they'd understand and be willing to pay. Most businesses (outside of catering) do promotional things like this. They make a small profit the first time, but get bigger returns when used again.
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adolpho
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PostPosted: Apr 12 2007    Post subject: Reply with quote

Harry Nutczak wrote:
Ok, so someone calls for a job, you cannot meet their cost requirements. What do we do?

me I do not know which way it would go. of course I would try to help (A karma thing) but if there is no way that i could even pocket enough nickels for the Casino for an hour of play time I would need to decline the job. I would say I have that date filled so I do not hurt her feelings. I wold not say anything about being cheap or do anything to make the caller feel bad. you never know who might be a part of that party or helping arrange it.

Ok, do you offer referrals to other caterer's? What if the other caterers do decide to take the low money job, and serve them complete garbage in return. So you are the one that referred them, how does that reflect on your business and food quality? I would connect the dots and think "That food really sucked, but "Nutzcak's Nasty-Q Catering suggested them. do they suck that much too? we will need to avoid them in the future then"

I think BBQMAN has the best route, rationalize with the customer that does not realize costs, use "McDogShizzles" as a logical reference point and state how much a happy-meal will cost by visiting mcdogshizzles, and then ask how can you expect a quality (Non mass-produced) product to be able to compete with pricing less than a happy meal. (in a nicer way of course)

So, making the customer realize that it is just not possible and remaining nice (no condescending attitude) they might be able to raise more coin. Maybe it was the brides father footing the bill, and 50 years ago that is what things cost back then? And the father is making her call around because he is just that clueless, he has the money to pay for a real event, but is just so out of touch with reality he might not realize modern day cost's.

So, ask for what date last, and be able to use that as a nice way out of declining a job. yes it is a lie, but you cant be in 2 places at the same time.
If I was a less then wealthy bride, I would feel less embarrassed by a date already taken then being told that I do not have enough money to get a caterer.

maybe they will have the reception at a later date when they can afford it then and call you because you treated them nicely.

Any comments on that theory??


Awesome answer.
I guess it's all about being nice about it.
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OddThomas
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PostPosted: Apr 12 2007    Post subject: Reply with quote

BBQMAN wrote:
No hard feelings here OddThomas! Very Happy

Oh I know and none here either, of course. That was just a general comment, not aimed towards any specific person. I've just seen a lot of threads go off down the bickering path in the past week or so because someone had a different opinion. Must be something in the smoke. Smile
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OddThomas
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PostPosted: Apr 12 2007    Post subject: Reply with quote

[quote="GordonsBackyardBBQ"]
OddThomas wrote:

Its a reality. I certainly don't see where the 70 to 80 % is in a 2.50 meal. Laughing

You're absolutely correct I meant to state 20-30% profit, as BBQMan also pointed out.

And let's just put it this way then; I could feed 200 people just chicken on a $500 budget and put about $200 in my pocket when it was all over. I also think I could probably bump her up to $600 unless she was flat broke and increase my margin a bit.

At the end of the day though, for the big dogs, it probably just isn't worth it.
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allsmokenofire
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PostPosted: Apr 12 2007    Post subject: Reply with quote

OddThomas wrote:
At the end of the day though, for the big dogs, it probably just isn't worth it.


...and that is why there are little dogs too. Then the little dogs grow and become big dogs...."it's the circle of life Simba". Wink
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marvsbbq
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PostPosted: Apr 12 2007    Post subject: Reply with quote

Yea, I did not have 'my feathers ruffeled' either...as we are ALL trying to explain what we know.

As OddThomas was trying to explain (I think) was the customer's side. I know for a fact that a LOT of clients have NEVER used a caterer before and therefore really have NO idea what costs are involved in putting together an event. Where they get the 'low ball' figure from, I have no idea. It is however our job as a caterer to explain the options to them as we see them.

In this lady's case, I told her she could POSSIBLY call JJ North's (an all you can eat buffet place) and as I have heard you can 'pick up' food there for around $5 per person. I also told her that for per price range, there really is not much anyone could do for her that I know of. If there was, I would certainly tell her.

No, I did not LMAO while she was on the phone (did that afterward Laughing )

I was very polite to her as you never know IF she may make some calls and find out that I was right and just call us back to book it. If I had been rude to her, I am quite sure that would not happen..

Next week, I will feed the downtown clean up volunteer crew of 150. We will feed them chicken pcs (up to 2 if they want) and potato salad. The drinks are to be donated by someone else.

We do this twice a year as a 'freebie' to the community. Last fall I fed them pulled pork sandwiches and a bag of chips...

I have also done burgers and dog with ALL the fixin's...lettuce, tomato, onion, cheese, relish and condiments....and chips.
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Slamdunkpro
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PostPosted: Apr 12 2007    Post subject: Reply with quote

adolpho wrote:
As far as pricing yourself cheap and people expecting it, that's totally what you make of it. If you lose them as a client next time around, then they are just being cheap. But if you did an awesome job and the food was great, they'd understand and be willing to pay. Most businesses (outside of catering) do promotional things like this. They make a small profit the first time, but get bigger returns when used again.

I disagree here. I've been in the service industry for a long time (including food service) and I've learned that discounts only lead to more discounts. Soon everyone is shopping you on price alone and you become the "lowball leader".

Say you take pity as someone suggested and do this gig for $600. You're a hit and the wedding party refers you to 25 people. They all call and want the "$600 package that Mrs. XXX got". Now what do you do? Almost any response is going to be off putting to these potential clients and generate considerable bad will.
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bigdad
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PostPosted: Apr 12 2007    Post subject: Reply with quote

.[/quote]
I disagree here. I've been in the service industry for a long time (including food service) and I've learned that discounts only lead to more discounts. Soon everyone is shopping you on price alone and you become the "lowball leader".

Isn't that the truth. I worked for the thrid largest LP supplier in the U.S. We were not going to be the "el-cheapo" provider. However customer service and customer base is making them the "el-cheapo" player. I wasn't allowed to refuse any one that called with an order that said "but I can get it for XXX from XXXX." I would say I can do that when do you want delivery? End result??? They are selling off and down sizing and they can't figure out why Laughing Laughing
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marvsbbq
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PostPosted: Apr 12 2007    Post subject: Reply with quote

[quote="OddThomas"]
GordonsBackyardBBQ wrote:
OddThomas wrote:

Its a reality. I certainly don't see where the 70 to 80 % is in a 2.50 meal. Laughing

You're absolutely correct I meant to state 20-30% profit, as BBQMan also pointed out.

And let's just put it this way then; I could feed 200 people just chicken on a $500 budget and put about $200 in my pocket when it was all over. I also think I could probably bump her up to $600 unless she was flat broke and increase my margin a bit.

At the end of the day though, for the big dogs, it probably just isn't worth it.


Ok, here is the deal....my price quote was $13.95 PP....It does NOT mean..."$13.95 or best offer"
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