# Pricing



## ClassikV (Dec 29, 2020)

I'm a cook that wants to start a catering company but having a hard time with pricing. I'm also having a hard time understanding how to price dishes that I make when I sell food from home. I've spoken to quite a few friends about it and one friend of mine helped me come up with pricing for my menu items, but, at times I either feel like I'm selling myself short or I just wanna be sure I'm not overcharging anyone. Do I really have to measure each and every ingredient in each dish that I make? I don't even know the measurements I use to make most things. I go according to taste. Maybe it's hard because I'm also always chasing deals as opposed to having specific places that I go to for produce, a place for my meats, etc. I have so many questions when it comes to pricing can anyone steer me in the right direction?


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## sgsvirgil (Mar 1, 2017)

For catering: Cost of food + overhead + what you're time is worth = cost.

For your home food items: When you make the items that you intend to sell, you need to start taking written notes of the amounts of ingredients and time it takes to make each. When you purchase your ingredients, you need to know how much they cost and how many final products you can get out of each ingredient. That will tell you what it costs you to make them. Then, you need to ask what you want your profit margins to be? 20%? 30%? 40% More? What will the market bear? For example, it costs about $2 or less to make a pizza. But, they can be sold for 8 times that amount or more. In contrast, if you were to break even on a prime rib dinner special, you're doing well. The logic being the prime rib special draws the customers and you make your money on other menu items, apps/drinks/deserts etc. 

Its a time consuming and tedious process. But, if you want to price out your offerings properly, it needs to be done. 

Good luck.


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## halb (May 25, 2015)

This is the difference between being a cook and being a business owner or chef.



> Do I really have to measure each and every ingredient in each dish that I make? I don't even know the measurements I use to make most things. I go according to taste.


To be accurate, yes and to be consistent you need to start writing things down.


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## foodpump (Oct 10, 2005)

ClassikV said:


> . Do I really have to measure each and every ingredient in each dish that I make? I don't even know the measurements I use to make most things. I go according to taste. Maybe it's hard because I'm also always chasing deals as opposed to having specific places that ...


Let's say you make a beef stew and get in top round at 8$ a lb, you make a batch that uses 3 lbs, and you sell it $30.00. Next time you make it for the same customer but find a deal for top round at $7.00/lb and use 4 lbs for the same customer for the same price- or you use 2 lbs and the customer calls you a cheat and uses all sorts of nasty names.

Like halb says, in order to be consistent you need to measure ingredients. That said, throw away your measuring cup and get a good scale. Just about every ingredient you buy is sold by weight and it Is beyond stupid to calculate how much two cups of 1" dice cooked chicken costs, how much one sour cream tub of sliced onions costs, or how many cups of flour there is in a 25 lb bag. It's also more practical, precise, and faster to measure liquids by weight-something every pilot and aircraft mnfctr use to check how much fuel they have.

Chasing deals is part of every Chef's job, but there are two golden rules: Buy what you need; don't go inventing new stuff because you couldn't pass up a deal on smoked eel, and : Buy in quantities that you can use within a comfortable time frame


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## retiredbaker (Dec 29, 2019)

ClassikV said:


> I'm a cook that wants to start a catering company but having a hard time with pricing. I'm also having a hard time understanding how to price dishes that I make when I sell food from home. I've spoken to quite a few friends about it and one friend of mine helped me come up with pricing for my menu items, but, at times I either feel like I'm selling myself short or I just wanna be sure I'm not overcharging anyone. Do I really have to measure each and every ingredient in each dish that I make? I don't even know the measurements I use to make most things. I go according to taste. Maybe it's hard because I'm also always chasing deals as opposed to having specific places that I go to for produce, a place for my meats, etc. I have so many questions when it comes to pricing can anyone steer me in the right direction?


depends what you mean by catering.
I told wedding clients the food was not the big expense in weddings.
Its everything else that drives the price up, its all about the event space rental, tents , china and linen rentals. 
They want covered chairs for 120pp, thats gonna be 2 staff half a day.
If you use an event staff rental they are not cheap and its 8 hr minimum .
3 day Tent fire permit plus the inspection fee, who has to go fill out the paperwork and be onsite for the inspection, its all expense.

If you're just doing dropoff, call a catering company and ask for a quote.


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