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Catering, Vending and Cooking For The Masses. this forum is OnTopic. A resource to help with catering, vending and just cooking for large parties. Topics to include Getting Started, Ethics, Marketing, Catering resources, Formulas and recipes for cooking for large groups. |
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03-03-2010, 09:30 AM | #1 |
Full Fledged Farker
Join Date: 12-10-07
Location: Roseville, CA
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Profit per person
Does anyone analyze their catering operation and pricing so they come up with a profit per person? At the end of the day, what do you think you need to come away with per person? Do you adjust that according to the number of people served? I know my food cost, my labor cost, my misc. costs and want to plug in a profit number per person and was wondering if there is a common number that most use? Is $5 per person about what you end up with at the end of the day?
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03-03-2010, 10:21 AM | #2 |
Full Fledged Farker
Join Date: 05-06-09
Location: Mount Holly, NC
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How do you determine what your labor cost is? I'm curious how that is figured.
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Scott, Head Cook - Sauced! BBQ Team |
03-03-2010, 10:55 AM | #3 |
Full Fledged Farker
Join Date: 12-10-07
Location: Roseville, CA
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Labor cost is variable according to the number of help and hours needed for the job. I use $10/hr per person, that pretty well covers min. wage and other payroll costs for my costs and add to that another $5/hr. so the client ends up paying $15/hr. in my calculations.
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03-03-2010, 11:00 AM | #4 |
Full Fledged Farker
Join Date: 05-06-09
Location: Mount Holly, NC
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what's the extra $5 an hour for? is this the same calc you would use if its just a one man job?
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Scott, Head Cook - Sauced! BBQ Team |
03-03-2010, 08:08 PM | #5 |
Full Fledged Farker
Join Date: 12-10-07
Location: Roseville, CA
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The extra $5 is for the house. Can't only charge the cost of the personnel. When a service guy comes to your house and charges by the hour the guy is not getting it all, some or most goes to the house. Car expenses, phone, etc. need to be picked up and the extra for the house helps that. If I am the one man, then I am really expensive!!! Seriously, you have to charge for your time if you are doing the work, just like you would charge for an employee.
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03-03-2010, 08:38 PM | #6 |
Full Fledged Farker
Join Date: 05-06-09
Location: Mount Holly, NC
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Makes sense. I misread your reply about what the 10/hr was. Originally I thought it was including your time. Now i understand it. Thanks!
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Scott, Head Cook - Sauced! BBQ Team |
03-03-2010, 08:57 PM | #7 |
is Blowin Smoke!
Join Date: 04-14-07
Location: Lakeland Florida
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I take the total cost of goods sold. Now that does not include rubs, pans, etc. Then I multiply by 4 and see how itworks out. If the gig includes a buffet or table service it an go up. If I supply tables, cutlery, etc the price goes up. At the end of the day my time is not included. It's part of the profit. If I don'd get 4x plus then it's probably not worth my time.
Only you can decide what your times worth. I can sell $4k a day at a Fair if it's a good day with only 1 helper but I can also get stuck with $500 with bad weather, What's my time worth. It's not what it's worth it's what you can live with.
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03-03-2010, 10:05 PM | #8 | |
is One Chatty Farker
Join Date: 01-29-07
Location: Fountain Hills, AZ
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Quote:
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Just me, the Wife, and the Dogs |
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03-04-2010, 06:38 AM | #9 |
is One Chatty Farker
Join Date: 09-10-06
Location: Fort Worth, TX
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I use the "what are you worth" per day approach.... I guess I have said this a few times before on this forum... It takes as much time to cater for 100 as it does for 200. If you can't make money on it, then why do it. The meat and sides at some point become the cheapest portion of the job. Some folks on this forum worry about getting the job, others give thought to making the profit and not cheapening the industry.
Another thing I see is folks in California comparing what they charge to someone in the Midwest....
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03-04-2010, 10:15 AM | #10 | |
is One Chatty Farker
Join Date: 01-29-07
Location: Fountain Hills, AZ
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Quote:
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Just me, the Wife, and the Dogs |
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03-04-2010, 11:46 AM | #11 |
somebody shut me the fark up.
Join Date: 05-24-04
Location: Long Beach, CA
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Same here. Somethings aren't worth my time. Luckily, I have the option of having people come to the market and pick up food for smaller events. I'm going to be cooking anyway so it doesn't hurt to add in extra. And I don't have to deliver or setup. I love those jobs.
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03-04-2010, 01:38 PM | #12 |
somebody shut me the fark up.
Join Date: 05-03-06
Location: Ventura, CA
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I generally stick to 33% mod (food, labor, profit). It works for me!
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