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Price Advice

Discussion in '5 Day Smoking Basics eCourse' started by The Butt Man, Mar 21, 2018.

  1. I do a lot of cooking for our church functions and different things in the community. It seems like every time I do, someone approaches me and ask if I would cater an event for them.
    This is something I would be interested in but I am not sure on determining a price. I don’t want to over charge but I don’t want to sell myself short at the same time.
    Does anyone have a magic formula they use to give a quote?

    I didn’t intend on posting this under advertising. Newbie mistake.
     
    Last edited: Mar 21, 2018
    Wood Chunk Chick likes this.
  2. twocents

    twocents Newbie ★ Lifetime Premier ★

    Be careful when it comes to permits, guidelines, etc. You never know when the health nazis will turn up. Sterilization, etc. Might be more trouble than it's worth. Look into it though, you might be pleasantly surprised.
     
  3. Thank you for the advice. I am still pondering the idea but I need to do some research first.
     
  4. oldsmokerdude

    oldsmokerdude Smoking Fanatic SMF Premier Member

    I've done this a few times. Things to consider:
    1. What is your time worth? Do you want to make $15 per hour? $25 per hour? Set a price that you are comfortable with and stick to it.
    2. Total Food Costs should be less than 33%. This includes meat, sides, deserts, appetizers, whatever. I try to keep it around 30% of what you charge per event.
    3. Will you have to hire someone to help? What will you pay them? Total "wages" for you and any helpers should be less than 25% or what you charge.
    4. You will have supplies and consumables costs as well. This includes fuel for smoker, disposable plates and eating utensils, napkins, etc. These should 10% to 15% of what you charge.
    5. If you're going to do this a few times or more, establish a real business. The IRS likes to see your business money separate from your personal money.
    6. INSURANCE: In today's climate I would not serve food without liability insurance.
    7. After you get the check from your customer and subtract the above costs, you should make a gross profit of around 25%.
    8. I usually start by finding out how many people will be served. That helps you determine how much food and supplies to buy. Figure in your time cooking, transporting, serving, and cleaning up (don't forget your paying yourself).
    These are just guidelines of course. The biggest mistake people make starting out is not charging enough.

    I would be happy to discuss further if you like. Others may have a different approach.
     
    BigTurtle and Wood Chunk Chick like this.
  5. Thank you so much. That is very helpful.
     
  6. BigTurtle

    BigTurtle Smoke Blower

    You could call a caterer local to you and give them a head count and choose a similar menu like two meats and two sides. Compare costs.
     
  7. fivetricks

    fivetricks Smoking Fanatic

    Give this file a look. Adjust the pricing columns for whatever the prices are in your community :-)

    Shouts to Al. This is just a forward of the file he passes around!
     

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