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-   -   Pricing on site vs drop off (http://www.bbq-brethren.com/forum/showthread.php?t=162456)

HBMTN 06-03-2013 09:43 PM

Pricing on site vs drop off
 
Just wonder what the price difference you all are charging for a drop off vs on site buffet? Example - Currently I am getting $9.95 for pulled pork and two sides for on site catering and $7.50 for it dropped off.

I am wondering if I should raise my on site pricing. My thought are I am charging $245 for on site and it requires additional labor for me as well as paying for help. Plus I am supplying all plates, flatware, sterno etc and have way more clean up from on site vs drop off. When you break it down I think I am probably doing the on site portion for close to nothing.

I am getting plenty of work both ways but feel like it is time to widen the gap between drop off pricing and on site. Also, if it is less than 100 people (minimum 50 people) I charge a $100 set up fee. Thoughts?

Sauce Dog 06-04-2013 01:04 AM

I think both of your prices are too low, but if you don't want to change the drop off price I would at least increase the onsite prices. Not sure why you waive the set up fee for larger parties, it's more work. I also hope you're charging something for the additional staff...gratuity, service fee, catering fee, or whatever you want to call it. Otherwise, your staff might be absorbing most of your profits. Keep in mind the time & labor of purchasing, prepping, cooking & packaging…all before the party even starts.

I've tried several types of pricing formats, and now go with an all inclusive price per head, because it works for me. I have different menu packages with add-on availability, and I've simply increased the price by a few bucks to cover everything needed, including a light staff & onsite reheating when possible. I use a smoker trailer, which is great for advertising. My prices are on the higher side (partially b/c of the all inclusive), but I know I put out a great product. Don't sell yourself short...If your BBQ is good, people expect you to charge for it!

Cheers

Sauce Dog 06-04-2013 01:08 AM

Ok, just re-read your post and noticed the $245 fee, sorry about that. Makes more sense now! You can also try not advertising the drop-off price, but just that it's available. Then you can gauge the situation when you talk with the customer, and price the drop off accordingly.

HBMTN 06-05-2013 08:51 PM

I am not charging a $245 fee for on site. Basically based on 100 people that is all the more I am grossing and then the costs come out of that. Here in rural Va ya can't get away with much higher prices I started out 3 years ago charging $12.50pp for pulled pork and 2 sides. It was not until I dropped the price that I started getting busy. That is kinda what I am wondering, I ask more for on site but still sell them on the drop off if they think the on site is too much.

Sauce Dog 06-06-2013 10:59 AM

Wow, that's tough! Sounds like with your current clientele the drop-off is more ideal so you don't spend precious revenue on labor, and it takes less of your time. Can you try marketing your onsite services to the country club crowd? I find that sometimes if you increase the prices, it opens up a new market of people that want the product, but don't want to be seen as "cheap". Same concept as a grocery store charging more for the same product in a "higher end" neighborhood.

HBMTN 06-06-2013 05:00 PM

Quote:

Originally Posted by Sauce Dog (Post 2506140)
Can you try marketing your onsite services to the country club crowd? .

LOL that is who I am feeding, 90% of my business is country club crowd, doctors and college professors. Like I said rural area make a difference.

HBMTN 06-06-2013 05:20 PM

Quote:

Originally Posted by Sauce Dog (Post 2506140)
Can you try marketing your onsite services to the country club crowd? .

LOL that is who I am feeding, 90% of my business is country club crowd, doctors and college professors. Like I said rural area make a difference.

Bamabuzzard 06-07-2013 10:17 AM

Quote:

Originally Posted by HBMTN (Post 2505526)
I am not charging a $245 fee for on site. Basically based on 100 people that is all the more I am grossing and then the costs come out of that. Here in rural Va ya can't get away with much higher prices I started out 3 years ago charging $12.50pp for pulled pork and 2 sides. It was not until I dropped the price that I started getting busy. That is kinda what I am wondering, I ask more for on site but still sell them on the drop off if they think the on site is too much.

Yep, ultimately the market will dictate your price. I've known several people who have been so prideful and stubborn that they refused to lower their prices and ultimately went out of business.

acguy 06-09-2013 07:26 PM

Next to "how much food should I cook", I think "what can/should I charge is the most common question on this board.

I have 30 years of working with P&L's for contractors all over the country and they all ask the question: what should I charge. Rules and formulas are the same.

First, what you CAN charge depends on the market saturation in your service area and, how you brand your product. Biggest mistake here is to sell your product based on price alone. Ideally you want to charge more but get it because your worth it to the customer.

What you SHOULD sell your product for depends on your food costs and overhead costs. O/H should include items like equipment depreciation, vehicle use, etc. We all know the 3 times food cost pricing method. Start with that and work backwards. After some experience, you can determine a "gross profit dollar per hour".

If you understand those figures, you'll find out that the per person charge will change depending on how many your serving in the event. Smaller events might require a fee while larger events don't. You can have more confidence in your pricing and bidding. And, most importantly, you'll leave the low profit stuff for your competition.

Ultimately you want to see what your net is. (normally pre-tax net profit). This number is normally low to start with. After a couple years, it should be at least 10%-12%. If it's less than that, you might want to rethink continuing.

I could write a book or two. This is only some really broad strokes.

kadQ 06-13-2013 06:23 AM

I'm venturing into the catering business prices are the hardest thing for me to come up with, if I charge what others are charging i'm loosing money. My only resources are going to kroger, wal-mart and sams club and the local butchers all say the same thing when i ask for pork spare ribs cut st.louis style they say what am i talking about. I guess I have to remember that ohio is not a bbq state for now!!!!

I've done three parties so far and have just broke even, made enough to cover expense's but no more......

toadhunter911 06-13-2013 07:32 AM

Quote:

Originally Posted by kadQ (Post 2514150)
I'm venturing into the catering business prices are the hardest thing for me to come up with, if I charge what others are charging i'm loosing money. My only resources are going to kroger, wal-mart and sams club and the local butchers all say the same thing when i ask for pork spare ribs cut st.louis style they say what am i talking about. I guess I have to remember that ohio is not a bbq state for now!!!!

I've done three parties so far and have just broke even, made enough to cover expense's but no more......

You won't stay in business long charging what others charge. Figure out ALL of your cost to produce your product, and start with the cost x 3 method. Ie, if it cost you 2.75 to make a pulled pork sandwich, charge at least $8.25 for that sandwich.

Then, start to figure out how to get better pricing on your supplies. Sam's Club is OK, but try to find restaurant supply stores in your area (like Restaurant Depot). If you're doing this above board and have a business license then getting in will be no problem. Good Luck.

acguy 06-15-2013 05:35 PM

Quote:

Originally Posted by kadQ (Post 2514150)
I guess I have to remember that ohio is not a bbq state for now!!!!

I've done three parties so far and have just broke even, made enough to cover expense's but no more......

Perhaps you're missing an opportunity. Learn to cut your own ribs. It's very simple. Be "THE GUY" for bbq in Ohio.

You mention "the other guys" on pricing. Is it possible you're offering a good rib and the competition is offering a 45 minute piece of leather? How's pricing with brisket or pork? Just a thought.

kadQ 06-19-2013 06:40 AM

I do cut my own ribs due to the local butchers have no clue what a St.louis cut is. The going price per person for pulled pork, brisket is $11.00 with 2 sides no drink. Then ribs are 14.25-24.00 per person. my cost on spare ribs are 3.99 per pound and same for boston butts.

brisket well lets just say I've bought from snake river but am going to try whole packers from sams club.

bruno994 06-19-2013 07:51 AM

Quote:

Originally Posted by kadQ (Post 2521257)
I do cut my own ribs due to the local butchers have no clue what a St.louis cut is. The going price per person for pulled pork, brisket is $11.00 with 2 sides no drink. Then ribs are 14.25-24.00 per person. my cost on spare ribs are 3.99 per pound and same for boston butts.

brisket well lets just say I've bought from snake river but am going to try whole packers from sams club.

Seems like you really need some price break on the raw product, at $3.99 a pound for spares, that would be tough to get your price right. The same goes for briskets, by all means go with the Sams' Club packers, if you cook your brisket right, the general public wouldn't know the difference between a Prime and a select anyway. Just my .02...

toadhunter911 06-19-2013 08:43 AM

Quote:

Originally Posted by bruno994 (Post 2521324)
Seems like you really need some price break on the raw product, at $3.99 a pound for spares, that would be tough to get your price right. The same goes for briskets, by all means go with the Sams' Club packers, if you cook your brisket right, the general public wouldn't know the difference between a Prime and a select anyway. Just my .02...

There's a Restaurant Depot not too far from him in Columbus. Well worth a 20-30 mile drive to get better pricing, IMO. He could get under $2.00 a pound on spares and butts there. I think brisket is around $2.50 a pound.


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