Wednesday, September 21, 2011

Another View On Unwise Sales


Some sales cost the caterer more than others. Say, for example, that you have an absolutely packed day and you take “one more order” even though you are already too busy for that day. Chances are that this last order you took will create some additional costs for your company that you hadn’t thought about.

These costs would include overtime, extra personnel, the rental of an extra delivery truck, and so on. Each of these costs seems innocent. Unless you ask the person who placed the last order to help pay for these extra costs created by taking their order, the only way you can cover these costs is by taking some of the profit away from the other sales for that day!

“I’m sorry, but we’ve closed off that date because we’ve got a full-day. If you would like to place an order for that day, we would need to add an additional charge to cover the additional costs that your order would create for our kitchen. Or, perhaps you can arrange for your catering on a different day?”

While this may seem like a “fantasy” script to many reading this, I can assure you that many caterers have realized that it’s crazy to take certain orders under certain circumstances. The problem is that they often don’t realize it till after the day is done and the numbers come back for review.

So, I can now ask another question. With respect to your business, are you a “dog wagging its own tail” or a “dog that’s being wagged by its tail?” The answer is a crucial one for all caterers. As one caterer told me recently “If I’m making a clear profit... I book it. If I’m not going to make money with it... I tell them unfortunately I’m totally booked on that day.”

Have I confused you? Great! That’s what education is supposed to do... make you think and re-think your current ideas. Remember, complacency is a danger for any business and doing things “just because that’s the way we’ve been doing it” is also foolish, especially if you don’t stop once in a while to rethink the validity of your actions. Many caterers have more unwise sales than they think.

While it’s very hard not to take a “every” order, often it’s the best, and wisest, course of action if quality profit and less hassle are your goals.

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