Putting Prices On Bids

You will either like this or not. It deals with the problem of clients lowering their guest count guarantees as the event day gets closer. When they booked and gave a deposit they may have guaranteed 135 guests, but one week before the event date (sometimes only a day ahead) they call and drop the guarantee by 45 guests!

So, my suggestion is to use the "three price upfront" solution. In writing, on the bid/proposal the prospect receives, the caterer gives a solution upfront (before they sign the contract) of what the final price will be based on the final number of guests in their final guarantee.

For example: If the client's first guarantee is 135 guests, then the three price solutions below are placed on the bid/proposal as you see it below. The first price solution of $38.60 per guest is created by adding ten guests more and ten guests less to the client's 135 guarantee. The $36.25 price solution is offered to show the client that the caterer will "happily" lower the final price if the final guarantee is over 145 guests.

Lastly, and the reason we are doing this, a price solution is given of $42.30 if the final guest count drops below 125 guests. In this way the caterer creates some extra dollars to make up for the last minute loss of profit from the last minute guarantee lowering by the client.The $450, or more, added volume helps sooth the unhappiness of the caterer.

Here's how it would look on the bid/proposal:

38.60 per guest for 125 to 145 Guests

36.25 per guest for 146 or more Guests

42.30 per guest for fewer than 125 Guests

Why not test this concept to see if it works for you?