Profit per person

PorkQPine · 03-03-2010, 09:30 AM

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?

Sauced! · 03-03-2010, 10:21 AM

How do you determine what your labor cost is? I'm curious how that is figured.

PorkQPine · 03-03-2010, 10:55 AM

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.

Sauced! · 03-03-2010, 11:00 AM

what's the extra $5 an hour for? is this the same calc you would use if its just a one man job?

PorkQPine · 03-03-2010, 08:08 PM

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.

Sauced! · 03-03-2010, 08:38 PM

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!

Ford · 03-03-2010, 08:57 PM

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.

C Rocke · 03-03-2010, 10:05 PM

Quote:

Originally Posted by Ford

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.

Like Ford sez, by the job is the best way to work the numbers. I do know what I make per item on acouple of basic vending items (Sandwiches for example), but usually more concerned with what we net by the event.

tony76248 · 03-04-2010, 06:38 AM

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....

C Rocke · 03-04-2010, 10:15 AM

Quote:

Originally Posted by tony76248

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....

Yep, you have to undestand your local marketplace, and develop your own pricing model. Some move pricing around to get the job, and some sell the "value" of their service and product (price is secondary). I'm a value kind of guy.

Bigmista · 03-04-2010, 11:46 AM

Quote:

Originally Posted by C Rocke

Yep, you have to undestand your local marketplace, and develop your own pricing model. Some move pricing around to get the job, and some sell the "value" of their service and product (price is secondary). I'm a value kind of guy.

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.

big brother smoke · 03-04-2010, 01:38 PM

I generally stick to 33% mod (food, labor, profit). It works for me!

03-03-2010, 09:30 AM	#1
PorkQPine Full Fledged Farker Join Date: 12-10-07 Location: Roseville, CA	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?

03-03-2010, 10:21 AM	#2
Sauced! Full Fledged Farker Join Date: 05-06-09 Location: Mount Holly, NC	How do you determine what your labor cost is? I'm curious how that is figured. __________________ Scott, Head Cook - Sauced! BBQ Team

03-03-2010, 11:00 AM	#4
Sauced! Full Fledged Farker Join Date: 05-06-09 Location: Mount Holly, NC	what's the extra $5 an hour for? is this the same calc you would use if its just a one man job? __________________ Scott, Head Cook - Sauced! BBQ Team

03-03-2010, 08:38 PM	#6
Sauced! Full Fledged Farker Join Date: 05-06-09 Location: Mount Holly, NC	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! __________________ Scott, Head Cook - Sauced! BBQ Team

03-03-2010, 08:57 PM	#7
Ford is Blowin Smoke! Join Date: 04-14-07 Location: Lakeland Florida	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. __________________ Ford Retired competition cook. BBQ mentor.

03-03-2010, 10:55 AM	#3
PorkQPine Full Fledged Farker Join Date: 12-10-07 Location: Roseville, CA	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.

03-03-2010, 08:08 PM	#5
PorkQPine Full Fledged Farker Join Date: 12-10-07 Location: Roseville, CA	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.

03-04-2010, 06:38 AM	#9
tony76248 is One Chatty Farker Join Date: 09-10-06 Location: Fort Worth, TX	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.... __________________ "Grilla in the Pits" "IMAGRILLA" There's plenty of room for all of God's creatures. Right next to the mashed potatoes. Brinkmann Model 6668 Gasser Hibachi Grill Stumps GF223 w/ Stoker assist ECB that wins the $ Weber One-Touch Gold 22-1/2" #3 Komono Large BGE w/ Stoker assist 55 gallon Drum Smoker Wood Crate Cold smoker w/ smoke injector No need for certification, I already know good BBQ!

03-04-2010, 01:38 PM	#12
big brother smoke somebody shut me the fark up. Join Date: 05-03-06 Location: Ventura, CA	I generally stick to 33% mod (food, labor, profit). It works for me! __________________ Peace and Smoke, BBS Powered by the West Coast Offense: Big Poppa Smokers and Simply Marvelous BBQ - "Walk with Us" My weapons: Humphrey's Smokers

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