Pricing on site vs drop off

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

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.

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 said:

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.

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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.

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.

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......

kadQ said:

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......

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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.

kadQ said:

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......

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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.

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.

kadQ said:

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.

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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...

bruno994 said:

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...

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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.

I checked out a flyer from restaurant depot this morning about freaked out over the cost of spare ribs, much cheaper!!!!! Already looking into a business liscense. I would like to go a browse just to see what prices I'm looking at. Spices etc.

I looked at an ad from restaurant depot this morning looks like it would be well worth getting a business license to save that kind of money. spare ribs $1.79 a pound thats just a start!!!!!

You need to figure out what you want to be? The low cost guy on the block offering the cheapest meat and sides in order to make a profit or a higher priced caterer who only uses the best meats and sides? A caterer can not compete with a restaurant that does drop off and make any money at all. You can't be everything to all, pick your market. Get a website, add pictures, lots of content and pages and some special deals as your min.

I have a few packages, the one for chicken includes cole slaw, baked beans and rolls. Min price is $13.95 per person plus 15% gratuity and sales tax with a 50 person min.

Pricing is really something that is driven by the area you are in. I am in an affluent area so my prices work, I'm not the cheapest and not the most expensive. I cook on-site and provide servers to dish the food at a buffet table and I include plates, utensile, napkins and condiments.

I have a friend in an even more affluent area and has been in business longer and his min price is $17.95 per person with 75 people min.

"I'd rather be hungry than tired and hungry"-anonymous

PorkQPine do you mind if I pm you????