How to Charge for Catering a Party
- 1). Ask about the details of the party. You should know how many people will be attending, what types of foods the customer wants you to prepare and how long the party will last. These details will all affect the cost of your services.
- 2). Estimate the amount it will cost you to purchase the food. Include all of the ingredients that you will need to make the meal. A wholesale food company will help you reduce the costs. The more people the customer is expecting at the party, the higher your food costs.
- 3). Factor in the cost of labor. This includes your work and the work of any people that you'll have to hire before, during and after the party.
- 4). Get quotes on large equipment you may need to rent. If your company doesn't yet have plates or certain gadgets you need to make the food, you'll have to rent these and you need to include the cost in your estimate.
- 5). Calculate your overhead costs. This includes the cost of your advertising, space rental, gas mileage for delivery and other such things. To determine how much of this to add for a catering estimate, you should divide the total number by the number of catering jobs you expect to do each month.
- 6). Add up all of these costs. This is the number that you need to break even.
- 7). Mark up the cost to include a reasonable profit. An additional 30 to 50 percent will give your company a nice profit.
