Negotionation of contracts

Pigs on The Run

Pigs on The Run

Full Fledged Farker
Joined
Feb 24, 2006
Messages
299
Reaction score
29
Points
0
Location
virginia
Ok!, I might be whining here, but how many caterers out there have worked out a full blown proposal and had the potential customer use your price to levy a cheaper price for a competitor. I don't mind price shopping , but I am talking hours of work here , then they go with someone else. Is there any way to kinda discourage this or what!.Don't get me wrong , we do over 50 events as a part time caterer. I even tell them right off the bat, that we are more expensive then us!
Thanks for any incite.
John
 
Not from catering, but, from my other job as a landscape architect for 32 years, the answer is no. There is nothing you can do, effectively, to prevent price shopping. You do your best to sell them on how good you are, and what the difference makers are in your service over cheaper places, and hope that they get it.

In the end, you cannot compete on both quality and price, choose your poison and roll with it. We were a office that focused in timely and accurate work, to that end, our prices had to be higher. Same for food, the better the quality and service, the higher the price has to be. Out here, the hot thing is Taco Truck catering, there is no way you can compete with that.
 
It's sucks that's for sure, don't know that I've had it happen to me catering but in 27 years of auto repair I had it happen a million times. Did they flat out tell you that's what they were doing? Maybe they are really telling you this to get you to then counter at an even lower rate thinking you will drop your price.

The way I see it you have two options 1) Hold your ground on pricing and promotes yourself and what you can offer for that price. 2) Play the game and lower your price and do what it takes to get the job. I'd stand my ground personally and would probably have to loose out on several events before I'd drop my price.
 
Your question brought up two thoughts. 1. you are spending to much time laboring over your offer? And 2. Are you selling your service as being more than a low bid cook? You got to charge enough to make your profit. But you need to help them get through the stress of their event.

With 50 jobs a year use them as references. They can be your best deal closers.

Good food isn't cheap! Cheap food might not be that good.
 
To some extent, at least out here, you are up against this.

A friend just related this to me, he is a freelance chef, worked for Charlie Trotter as a Executive Chef. Top of the line, he was contacted to cater a wedding, cost no object blah blah, when he sat down, over a two hour period, they covered every single thing that was to be expected, full service catering, right down to linens. His quote ended up being quite reasonable, at $20 per person. For white table cloth, with servers, $20 a person, outstanding! He lost the job, told someone better took the job. Okay, he dealt with it.

Then he found through the grapevine from a guest that was there, they had hired in a food truck, the owner asked only for a $500 minimum up front. No tables, no table service, not even real plates. And the guests paid for their own food from the truck. And it even made the social pages, as everyone talked about how great it was to eat off a truck at a wedding. All the rage now.

You can't fight that.
 
landarc said:
To some extent, at least out here, you are up against this.

A friend just related this to me, he is a freelance chef, worked for Charlie Trotter as a Executive Chef. Top of the line, he was contacted to cater a wedding, cost no object blah blah, when he sat down, over a two hour period, they covered every single thing that was to be expected, full service catering, right down to linens. His quote ended up being quite reasonable, at $20 per person. For white table cloth, with servers, $20 a person, outstanding! He lost the job, told someone better took the job. Okay, he dealt with it.

Then he found through the grapevine from a guest that was there, they had hired in a food truck, the owner asked only for a $500 minimum up front. No tables, no table service, not even real plates. And the guests paid for their own food from the truck. And it even made the social pages, as everyone talked about how great it was to eat off a truck at a wedding. All the rage now.

You can't fight that.
Click to expand...


Yea I fully expect things to head that way after I finally get established in the catering business LOL
 
From my experience in the tree trimming business, 1) It stinks when your potential customer uses your proposal including pricing in order to get a lower price. 2) Sometimes it is ok for a customer to use your proposal as template for other bidders so that they are comparing "apples to apples". 3) You are not going to turn all of your proposals into business. 4) There are some people who you really don't want to work for. 5) customers who always seek out the low bid are usually one time customers... I would rather have a regular customer.
 
How about having them sign a Non-Disclosure Agreement with a $5K penalty???

(just kidding :p)

I agree with the previous posters. It is just a cost of doing business. We checked with our accountant and found that we are able to document the total amount of time we spend "quoting estimates" and have been able to write off that expense as advertising. It isn't the same as "sales with margin" but at least we get some benefit back from it. Over a years time the total cost of this activity does add up.
 
landarc said:
To some extent, at least out here, you are up against this.

A friend just related this to me, he is a freelance chef, worked for Charlie Trotter as a Executive Chef. Top of the line, he was contacted to cater a wedding, cost no object blah blah, when he sat down, over a two hour period, they covered every single thing that was to be expected, full service catering, right down to linens. His quote ended up being quite reasonable, at $20 per person. For white table cloth, with servers, $20 a person, outstanding! He lost the job, told someone better took the job. Okay, he dealt with it.

Then he found through the grapevine from a guest that was there, they had hired in a food truck, the owner asked only for a $500 minimum up front. No tables, no table service, not even real plates. And the guests paid for their own food from the truck. And it even made the social pages, as everyone talked about how great it was to eat off a truck at a wedding. All the rage now.

You can't fight that.
Click to expand...

get the #### out of here!! They had the guests even pay??? And the guests raved about this? The emperor's new clothes truly are captivating to the sheeple, lol.
 
Then he found through the grapevine from a guest that was there, they had hired in a food truck, the owner asked only for a $500 minimum up front. No tables, no table service, not even real plates. And the guests paid for their own food from the truck. And it even made the social pages, as everyone talked about how great it was to eat off a truck at a wedding. All the rage now.

You can't fight that.

wow you people in California been ratled by tooo many quakes..Pay for a food truck's food at a formal party? I could see if the good Humor ice cream wagon went by, but this really sounds like the latest craze in Hillbilly Weddings!
 
I agree w/ realspazz-
From my experience in the tree trimming business, 1) It stinks when your potential
customer uses your proposal including pricing in order to get a lower price. 2) Sometimes it is ok for a customer to use your proposal as template for other bidders so that they are comparing "apples to apples". 3) You are not going to turn all of your proposals into business. 4) There are some people who you really don't want to work for. 5) customers who always seek out the low bid are usually one time customers... I would rather have a regular customer.
Click to expand...
Click to expand...

DO NOT, DO NOT lower your prices. All your referrals will be cheapskates, too.
 
That type of comparison is unavoidable and part of business. However, I would remind everyone that sales is a process. Before spending any large amount of time on a detailed proposal, the customer should have been qualified (I don't think "Pigs" was) and to a small degree, the job should be sold before an amount is given. If the cost of the job is going to be the selling point, get ready to be disappointed........a lot. There's always someone willing to do it cheaper.
 
It's all apples to apples, sometimes the guy who can afford a Chevrolet will take a stroll on the Mercedes Benz dealer lot only to dream and then go buy the Chevy but you don't see the Benz car salesman dropping his price to compete with the Chevy dealer. Don't be upset about it though, kill'em with kindness because 10 years from now that guy might be in a whole different place in life and be able to afford a fleet of Mercedes and remember you treating him good many years before when he could not. :wink:
 
You must log in or register to reply here.

Similar threads

SmokinAussie
Meat Hub!
Replies
12
Views
190
longwayfromhome
L
ssv3
A Week Of Birphday Eats
2 3
Replies
50
Views
3K
sudsandswine
sudsandswine
Headgear
Shirley and Shirley
2
Replies
32
Views
2K
Bury Me In Smoke
B
B
Prime filet-a short story
Replies
9
Views
486
HogGrog
HogGrog
Gore
Houston update
Replies
4
Views
427
LYU370
LYU370
Back
Top