Important Truths About Pricing - Part 1

Try to ascertain what your position is on these rules and axioms on pricing. You really don’t have to agree, or disagree, with them to gain some insight into your beliefs on pricing. Discuss them at one of your next sales meetings.

1. Pricing is a major part of your success or failure.

2. Pricing for caterers needs to be carefully thought out. It cannot be the same for everybody or every party; even McDonald’s charges differently for a Big Mac in different parts of a city.

3. Using a traditional mark-up policy for every event type, such as cost times three, will lead to trouble in most catering companies.

4. If your price is too high, you know, because buyers don’t buy. If your price is too low, buyers will never tell you!

5. The real question to ask is, “How much is this particular client prepared and then willing to pay?”

6. All prices should reflect volume discounting that the shopper understands.

7.  Prices for customized catering should reflect the value as perceived by the buyer along with what the market will bear. Caterers can do a better party with more money to spend!

8. The definition of fair pricing means that the client has an outstanding event, the guests become future clients of the caterer—and the company prospers!

9. Don’t buy back your business from the clients. “That’s okay Mrs. Smith, I’ll reduce your charge by $50.” This is buying back the business from clients. If you really want to give the client a break of $50, you should put $50 of your own money back into the company!