There are many business catering equipment available, which can make it difficult to choose the right one for an event. You can narrow down your options by learning how caterers set their prices. This will also allow you to match the service you want with the budget you have. Learn the three main pricing strategies that caterers employ for their service and what makes them different.
Total Cost of Catering
Catering companies do not always have the same pricing structure. Your catering cost will be determined by several factors. These include the scope and size of the event and any additional services that you decide to provide. The type of pricing can also provide benefits such as convenience, transparency, and efficiency.
When it comes to choosing a caterer, clients are often motivated by the cost of services. Even though the pricing structure does not necessarily make one catering company more affordable than another, it can be beneficial to clients that want to know how they arrived at their final bill.
Three pricing systems used by caterers:
Tiered — Tiered pricing can be confusing because it is so efficient. This pricing model allows clients to choose the level of catering based on their number of guests. This pricing model is similar to a package which includes all the services and foods that you want. A higher level is used for larger groups, and may have more food or more services. Smaller parties will likely opt for a lower or first-level tier.
Fixed- Similar to a restaurant menu, caterers often use fixed prices. It is an easy and straightforward method for pricing that provides exact descriptions of portions and prices. Prices are not affected by size, scope or individual preferences. This model of pricing is used by restaurants with catering departments, and also independent catering companies. This model is popular with clients because it’s easy to read and honest.
Custom — Custom pricing, which involves client/company negotiation, is less common, though it’s used by the catering industry, especially for weddings. This estimating model allows clients to sit down with coordinators and create a customized catering menu based on the number of guests, their food preferences and any additional services needed. Both the catering coordinator and the client will discuss prices during the meeting.