The number of catering companies is staggering, and it can be difficult to decide which one you want for your special event. To help narrow your choices and match services to budgets, you can learn how caterers determine their pricing. Keep reading to find out the differences between three of the most popular pricing techniques used by catering business group.
Average Costs for Catering
A catering firm’s pricing policy does not make them more or less affordable. Catering costs are determined by a number of factors. The most important is the overall size and scope your event as well the extra services you select to cater your food. In contrast, pricing systems can be beneficial in terms convenience, efficiency and transparency.
Clients are more likely to hire a company if they know where their costs originate. The pricing system may not be able to make a company less expensive than another but it will make the clients feel more at ease.
3 Top Pricing Systems for Caterers:
Tiered: Tiered pricing, while popular for its efficiency and effectiveness, can also cause confusion about what is included. The pricing is based upon the number of people attending. In a way, it’s like getting a set package with the type of food and service you desire. In the case of larger gatherings, it is more likely that a higher-level tier will be used. This may include additional food and services. A smaller party would use the first level or tier.
Fixed Like menus at sit-down restaurants, most caterers have a fixed menu price. A simple method that is clear and provides prices for exact portions, descriptions, and sizes. These are set and do not fluctuate based on size, scope, personal preferences, etc. This model is commonly used for independent caterers and restaurants with catering divisions. It is easily understood and appears honest.
Custom is a custom price that is sometimes used, mainly for weddings, in the caterer industry. In this estimation model, the client and catering coordinator sit down together and develop a menu for a specific event based on guest counts, food preferences and service requirements. In the meeting both the coordinator of catering and client talk about the prices.