Allright all you other caterers......

jbrink01

jbrink01

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I just received my invitation to bid an event we lost last year. 600 people, and it went for $12.00 a head last year (we lost the bid, as we incorrectly assumed steak was requested and it was not, it was just an option). Anyway, for 2 meats, 2 veggies, starch and tea we are coming up about 5% high based on our pricing spreadsheet compared to the winning bid last year.

I want this work but don't want to leave money on the table. At $12, we would clear about $2000 for the evening. Discuss.......
 
Need some more info......

What 2 meats?
Cooking on-site?
serving?

Thats a pretty darn good price for that menu, especially for the larger group, but VERY doable!
 
It's a choice of meats. I would offer pork loin, eye of round, chicken cacciatore, and sausage and peppers. Standard veggies and starch. 2 buffet lines, acrylic disposable plates. I'm ok at $12, and I'll kick me own arse if I lose it at $11.75. How would you price it? It includes tea, coffee and rolls.
 
jbrink01 said:
I just received my invitation to bid an event we lost last year. 600 people, and it went for $12.00 a head last year (we lost the bid, as we incorrectly assumed steak was requested and it was not, it was just an option). Anyway, for 2 meats, 2 veggies, starch and tea we are coming up about 5% high based on our pricing spreadsheet compared to the winning bid last year.

I want this work but don't want to leave money on the table. At $12, we would clear about $2000 for the evening. Discuss.......
Click to expand...

If the person who got this last year was so good for the price, why are they just not having them come back? "Bid" (For me anyway) is code for a way to grind the existing supplier. Realize the economy is slow, but there is room for value, as opposed to price - IMHO.
 
C Rocke said:
If the person who got this last year was so good for the price, why are they just not having them come back? "Bid" (For me anyway) is code for a way to grind the existing supplier. Realize the economy is slow, but there is room for value, as opposed to price - IMHO.
Click to expand...

I make a living selling the most expensive material handling equipment available - I understand value over price selling. This organization issues request for bid for every event.
 
jbrink01 said:
I make a living selling the most expensive material handling equipment available - I understand value over price selling. This organization issues request for bid for every event.
Click to expand...

I'm stymied - You'll come up with a good solution for them. $2k for the evening is still 2k.
 
28% profit and a $7200 check... I'd do it. Positive cash flow is a good thing.
 
jbrink01 said:
I hear ya. We could use a little more cash flow, even though I like a bit higher GP.
Click to expand...

Hell, I cooked one brisket today for someone and even delivered across town. I'll do anything for a check. Lawd knows I spend enough.
 
NP is down on everthing. Can't sacrifice product or prep quality, and a fuel surcharge doesn't hold as much water at $1.75 a gallon. Just have to upsell/add on wherever possible I guess. Still looking for a bigger pit though...
 
If you can pull off a 600 head dinner @ $12 per and still clear 28% GP that is pretty solid. Plus, you can add this to your portfolio. Not to mention the number of gigs you potentially will book from the 600 attending the event. As they say in marketing... Of those 600 each of them will tell at least 3 of their friends over the water cooler how good the food was and who did the catering.
My wife and I discuss this all the time. We shoot for 40% GP on our gigs. I would look the 12% as advertising!!! Just my .02.
 
hossrocks said:
If you can pull off a 600 head dinner @ $12 per and still clear 28% GP that is pretty solid. Plus, you can add this to your portfolio. Not to mention the number of gigs you potentially will book from the 600 attending the event. As they say in marketing... Of those 600 each of them will tell at least 3 of their friends over the water cooler how good the food was and who did the catering.
My wife and I discuss this all the time. We shoot for 40% GP on our gigs. I would look the 12% as advertising!!! Just my .02.
Click to expand...

Your strategy and mine are pretty close! It seems the bigger the event the lower the margin, unfortunately. I've done 100 people at 100%. I've also taken 2400 people at 22%. Heck, I catered a 12 person poker party for a local banker who likes my ribs and said price was no object. Every situation is different.
 
I always seem to get 600, 100 of which are kids. The other 500 are really 275 because they're couples, and half of them are half in the bag by the time the food is served, and don't think (or care to) ask who did the food. In the LA area, there are just so many choices.

After years of sales/marketing, a 2-3% referral rate seems reasonable. 2% of 600 = 12. I'd be satisfied to get them over a 6 to 9 month time period and charge at a good margin for me. My $.02
 
C Rocke said:
I always seem to get 600, 100 of which are kids. The other 500 are really 275 because they're couples, and half of them are half in the bag by the time the food is served, and don't think (or care to) ask who did the food. In the LA area, there are just so many choices.

After years of sales/marketing, a 2-3% referral rate seems reasonable. 2% of 600 = 12. I'd be satisfied to get them over a 6 to 9 month time period and charge at a good margin for me. My $.02
Click to expand...

No kids at this one, but an easy 50% of them will be hammered.
 
Some groups always want bids for their events. I bid a lot of sportsmen dinners (Duck's Unlimited, etc) I bid dinners at what I would normally do the job for--no special deals. The only thing that I do different is I never bid it at an exact dollar amount like $12.00----I would bid it at $11.88 and figure out a way to save 12 cents per person. I always set up one buffet line for every 100 people to expedite serving.

A 600 people dinner -I would set up 3 serving tables and have people go down both sides. Beans, rice, potatoes etc are inexpensive to cook---I have found that I can save money by letting the people serve themselves the side dishes---paying servers costs more than cooking extra beans. I set the table by the cost of the dish---least expensive first ---leading up to the meat at the end. By the time most people fill their plates with salad and beans and bread---there is not a lot of room for meat. I always have servers for the meat--standing at the far end of the table so they can serve people coming down both sides.
 
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