Catering Job and Monies???

Discussion in 'Food & Cooking' started by buellride, Dec 11, 2010.

  1. buellride

    buellride

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    Cook At Home
    Hello, just finished my 5th catering job...BUT, got $1000 in payment, though I only worked about 10 hours....what is the take for a majority of catering jobs out there?  Can someone let me know what the normal charge is????
     
  2. chefedb

    chefedb

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    There is no set in stone price, every gig is different, clientel differs, location differs. T put it mildly, its ""All you can get"""
     
  3. petemccracken

    petemccracken

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    For me, "normal charge" covers ALL my costs plus what I desire for my time and effort. Sounds simple, right?

    The "trick" is identifying and quantifying all your costs! The major items are:
    • Food (rather obvious)
    • Rentals (kitchen, equipment, tableware, chafers, etc.)
    • Labor (kitchen help, servers, dishwashers, drivers, etc.). Don't forget payroll taxes, if applicable.
    • Insurance, licenses, taxes & fees (generally annual, maybe monthly, some call them "fixed costs")
    • Sales tax (not really a "cost" as you simply collect from customer and remit to taxing authority)
    • Reserve for income tax (if applicable), to avoid unpleasant surprises 
    • Other overhead, clothes, training/education, depreciation on equipment you own, etc.
       
    The ONLY category where you have flexibility to adjust your price is what  you want as your fee or compensation as all the above have to be paid to someone else. This is where you adjust to match the competition as well as choose your target market.

    IMHO, forget rules of thumb like "multiply your food cost by 3 or 3 1/2 or 4" or "charge the same as your competition" or "stay 10% under your competition".

    Know all of your costs first! If you do not charge enough to cover those plus what you want for yourself, you will go broke!