Establish a User-Friendly Postponement Policy

In the aftermath of Hurricane Irene, it might be wise to "sell" a user-friendly postponement policy to your prospective buyers. A postponement is different than a cancellation. If you develop a fair postponement policy that clients understand, you’re likely to see fewer outright cancellations and lose less money. Clients never think that a postponement is permissible from a caterer until the caterer tells them it’s an option.

Postponements permit the client not to lose their deposit, which they tend to like. They must, however, confer with the caterer to set a new event date the caterer agrees to. When it comes to postponements, the caterer is in the driver’s seat.

Some caterers actually sell “postponement assurance” at the time of the original sale, giving the client the right to postpone the event with at least 48 hours notice. The fee charged is either a flat rate or per person. Many corporations booking for an outdoor picnic would be happy to pay an additional fee for the right to postpone if necessary.

Yes, this concept may seem negative for some caterers. So, think of it carefully before using it. My point is simply that  this is a method that has some usefulness. You can expect buyers to be concerned with this issue for a long time in the aftermath of Irene.

A Strange Selling Tip From Roman!

This post has been moved to CateringGuru.com.

Head over there to learn a lot more about catering sales!

Make Your Policies & Rules Part of the Sale's Presentation & Paperwork

Let buyers know and understand all your rules, policies and expectations during the selling process instead of describing them after the sale is made. Explain your rules and remedies in a casual and professional manner that lets the buyer see that you are aware that these types of things sometimes happen and, as a professional business, you have solutions and options for them if and when they do.

Examples of talking points would be deposits, guarantees, damage to property, overtime (if needed) for staff, and a bunch more. Some caterers simply place a sheet of paper (single page) in front of the prospect and explains them. Yes, one can get in "trouble" by doing this, so you need to think this out carefully.

What a caterer doesn’t want is for a buyer to say, "I didn’t know about this rule.” Or, “Why didn’t you tell me this before I purchased?” Often, the issue is not who is right or wrong when problems arise, but whether the caterer’s image will suffer as a client shares anger and disappointment with the community.

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A Basic: Your "Mission Statement"

Every company needs to clearly understand what business it’s in and what the company is trying to do. A mission statement is a concise declaration of a company’s goals and values. It sets the tone for what a catering company does and how it does it, every single day.

A mission statement also lets your staff understand what is expected of them. Catering owners and managers need to spend as much time thinking about their staff as they do about everything else. Every staff member has concerns, fears and frustrations with his or her job—even if they enjoy what they do and do it well. The mission statement helps bring clarity and confidence to your team.

An example of a mission statement:

“The mission of ABC Catering is to sell, produce and serve outstanding catering for the people of (city), while offering its staff opportunity for personal and financial growth and making a proper profit for the company.”

Notice that this mission statement speaks to opportunity and success for the caterer’s city, staff and clients plus the company’s bottom line. Help staff learn and believe in what the company does through discussions in both group and individual conversations. By establishing shared goals through constant communication, managers are able to make everything that happens at the company part of every employee’s responsibility. It is normal for staff to be part of and subject to gossip and misinformation on an almost daily basis. If you make sure they have correct information, it will help prevent any inaccurate or premature judgments that can complicate their contributions to the company and the company’s overall goals. Think through, understand and teach the company’s mission statement.

Your mission statement should be displayed prominently where everyone, including clients, is able to read it. Place it in a frame on your wall, print it on the back of your business cards, put it on your letterhead—or even on your invoices.

Discussion Points For Your Next Meeting - #3

The price of a hotel room depends on the size, style and location of the particular room. A room with a view of the beach sells for more than the exact same room looking at the parking lot. A room with a separate parlor is sold for more than the standard style room. A newly decorated room has more value than one that has not been refreshed. Can you see the ways in which a caterer can use the same type of logic as it applies to pricing?

Sample Copy for Contracts/Agreements - #5 - Miscellaneous

These are simply educational examples of possible contract language. Don’t use any of these clauses without approval from your attorney.

Miscellaneous

a) All food for the event must be supplied by (caterer) or a licensed vendor approved by (caterer).

b) If the venue does not provide garbage and recycling service, we will arrange for the garbage to be removed. Garbage removal prices will be quoted. Garbage or recycling materials may not be transported in (caterer) vehicles.

c) Gratuities are not automatically added to your invoice unless we are specifically instructed to do so. They are left to your discretion.

d) Exact amount due will be calculated after final count, exact menu, etc. is determined, ten (10) business days prior to the event. A 20 percent surcharge will be added if more than a 5 percent higher count arrives on the day of the event.

e) Should the host choose to engage outside vendors directly to provide decorations etc., it is the host’s responsibility to ensure that the vendor follows all fire codes, safety codes and health department regulations. The host will require the vendor to schedule a meeting a minimum of one month prior to the event in order to determine that the installation of decorations etc. will be allowed by (caterer). The use of rice, birdseed or confetti will result in a $200 cleaning fee.

f ) (Caterer) reserves the right to refuse service, exclude or remove from the premises any individuals who in (caterer) sole discretion violates the conduct requirements established by county and state laws. (Caterer) appreciates and expects the host’s assistance before a situation elevates to that level. The host’s cooperation to prevent underage drinking is requested. The bar will not be open beyond the end time of the event and in accordance with state law the bar must close no later than 1 A.M. and guests must leave the premises no later than 1:30 A.M.

g) Food put out for service but not consumed remains the property of (caterer). Wedding cake remaining is available to the host. No open bottles of alcoholic beverage may leave the premises with guests or host.

h) The following are prohibited at (the facility): an open-seating format for receptions, use of bubbles indoors, open flames, scented candles, use of silk petals outdoors, confetti and/or glitter. Aisle runners are strongly discouraged as they often lead to stumbles.

i) The state sanitary code prohibits us from providing “doggie bags” or leftovers for your guests. There is a concern about food borne bacteria. The exception to that rule is if we cater a function in your home. Providing that the food has been maintained in the safe zone (a state-mandated range of temperatures), we are allowed to transfer excess food directly to your refrigerator. Our staff is instructed to maintain strict compliance with this policy. Leftovers from events are donated to area shelters and homes.

j) We reserve the right to refuse alcohol to anyone who, in our opinion, appears to be under 21 years of age, cannot produce a legal ID or is intoxicated. Our discretion prevails. In such instances, the host will be notified and the situation will be handled tactfully and discreetly.

k) (Caterer) reserves the right to adjust pricing for any requests to alter or in any way change the menu after this agreement is signed. (Caterer) uses the highest quality product and vendors. Should there be a local, regional or national shortage or substantial price increase of one or more of the ingredients of the selected menu (caterer) additionally reserves the right to offer a comparable or equivalent substitute for the approval of the host.

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Had Some R & R Over The Weekend!

Bernice and I spent some time in Michigan over the weekend visiting some family and friends.

When visiting our longtime friend Bill Reynolds and Mary Hess at their summer home we were greeted with a wonderful dinner in their beautiful garden. This is something that I usually shy away from, but it was simply delightful. Even the "bug" gods were on our side. When a dinner starts with a Shrimp Cocktail first course, you know you are in the correct place!

That's Bill on the left, Bernice in the middle and yours truly. The photo is being taken by Mary Hess who made an amazing dessert for the dinner! Food glorious food!

One Way to Send Proposals That Blow Prospect's Minds!

When presenting a proposal for a major event try involving the shoppers five senses of seeing, hearing, touching, tasting, and smelling. Consider sending a box or package, instead of just an envelope or email with the written proposal and some linen samples that involve the shoppers sense of touch and sight. Add a few dessert items that will involve their taste and smell senses and an example of a sample place setting that will possibly involve their sense of hearing when it hits an object. This will separate your company from the others, who just send an email.

Sample Copy for Contracts/Agreements - #4 - Payment

These are simply educational examples of possible contract language. Don’t use any of these clauses without approval from your attorney.

Payment

a) An initial payment of $1,000 is required to reserve your date. One half the projected total is due sixty (60) days prior to your wedding. The balance is due seven (7) days before the event. If payments are not received at scheduled times, the event will not take place.

b) Weddings must be paid in full ten (10) days before the event. This payment will represent 100 percent of the estimated bill with any balance payable upon conclusion. A credit card number will be kept on file to cover any incidentals or for additional deposits or final payment. All payments are payable to (caterer). Checks are required for the original deposit; checks and major credit cards are accepted for the 50 percent deposit and final payment. The 50 percent deposit and final payment must be remitted within ten (10) days of notification. Failure to pay will result in the credit card on file being charged in the amount owed.

c) At the time of booking, a $1,000 deposit is required to secure your date. This deposit will be applied against your final bill. This deposit is non-refundable. A second payment of $3,000 or an estimated 25 percent of your remaining balance will be due 90 days prior to the function. A notice regarding the second installment will be mailed. As above, this payment is non-refundable and will be applied against your final balance. The remaining balance is due one week prior to the function. We will bill you after the function for any additional expenses incurred the day of your event. Deposits and final payments may be made by cash, bank check or credit card. We accept Master Card, Visa and American Express.

d) Client agrees to pay the final balance three (3) days prior to (date) by cash, cashier’s check or wire transfer. Full final payment must be received by (date).

e) Client agrees to pay (caterer) for any meals provided to musicians, photographers or any other persons retained by the client to provide services during the course of the event at the rate of 50 percent of the per-guest charge. Except for youth events such as first communions and bar mitzvahs, children ages 10 and under are also bill.

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Sample Copy for Contracts/Agreements - #3 - Damage To Property

These are simply educational examples of possible contract language. Don’t use any of these clauses without approval from your attorney.

Damage To Property

a) Customer understands that all property brought to the event location, including but not limited to all serving equipment, floral arrangements, skirting and linens, non-floral centerpieces, and all other property belonging to caterer, shall be removed by caterer at conclusion of the event.

b) In the event that any of the caterer’s property delivered to the event location is broken, stolen, or missing, whether due to actions of customer, their staff, or guests, the customer will be responsible for replacement cost of any such property. In the event that such loss is due to the caterer, the client will not be liable for replacement.

c) Client understands that all of the caterer’s property will be removed at the end of the event. If the customer requires, or asks, for any of this property to be left behind, the client shall be charged an appropriate fee for use of this property.

d) (Caterer) is not responsible for items broken or lost by vendors or sub-contractors.

e) Host is responsible for persons attending the event and assumes liability for any and all damages they may cause. We regret that (caterer) is not responsible for any loss or damage to client’s and guests personal property.

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Getting Paid Quicker by Corporate Clients

The majority of payments given to caterers by corporations are automatically prepared using computer-generated payment checks. This payment system is based on approval from the department head, who ordered the catering and th vendor information stored by the computer onthe caterer. Your client turns your invoice in with an approval code along with the customer identification number you gave them—if you in fact gave them one. It is this customer number that a caterer gives to the client, which in turn generates the specific vendor number that the client’s accounts payable department gives to the caterer’s contact and payment information that makes the payment happen.

If the client doesn’t have a unique customer number to alert the computer that your company is already approved for payment, your payment for invoices are slowed down dramatically. The reason for the slowness is that your client needs to walk through your invoice for payment. In other words, blame for slow payment goes to the caterer not the client!

The solution is to always place a specific unchanging customer number on every invoice you send to that client. This would be true also for any requests or invoices for deposits. Caterers will get paid quicker if they do two things: Place an order/invoice number on each invoice sent so the client can do more efficient bookkeeping and their computer can keep proper records of the payment history. Then, place a very small discount on the invoiced amount if it’s paid within 10 days. A simple 2 percent discount will prompt the computer to pay your invoice before invoices that don’t offer a quick-payment discount. If you do this, be sure to display the amount they will pay if they take advantage of the discount, in addition to the non-discounted amount.

Many caterers offer a prepayment discount to corporations if the client pays the invoice in full before or on the day of the event itself. Sometimes payment is slow simply because it may take 45 processing days for an invoice to be paid. Consider giving your client an invoice for the majority of the amount due 50 days before the event. You will bill for staff overtime and other charges after the event, but you will have the bulk of the money owed you in a timely fashion.

Sample Copy for Contracts/Agreements - #2 - Cancellation

These are simply educational examples of possible contract language. Don’t use any of these clauses  without approval from your attorney.

Cancellation and Postponements

a) Customer understands that once a contract is signed, the caterer may decline other profit-making opportunities for that day. Accordingly, the client will be responsible for the entire contract cost even if the event is cancelled.

b) Customer understands that as the event date comes closer, the caterer has hired event staff, purchased foods and beverages and contracted for kitchen labor. Accordingly, the client will be responsible for the entire contract cost even if the event is cancelled.

c) If the client notifies the caterer in ample time, the caterer will make every effort to rebook the date or lower the amount of the loss. In this case, these savings will be passed along to the client.

d) If the client’s guest count drops more than 40 percent from the original guarantee, the caterer has the right to cancel the contract unless a higher price is negotiated to offset the loss of profit.

e) In the event that a client cancels the function with not less than two weeks prior to the date, 50 percent of the deposit will be retained by the caterer. If the event is cancelled with less than one week notice, the client will be responsible for the entire amount due.

f ) In the event of the cancellation of your reception within thirty (30) days after booking, the full initial payment will be refunded. If cancellation occurs more than 30 days after booking, appropriate administrative costs will be deducted. Receptions cancelled less than sixty (60) days prior to the event will forfeit all deposits. Rental charges, with the exception of tent deposits and specialty linen rental will be removed from the total invoice if notice of cancellation is received ten (10) days in advance of your event.

g) As we have already established a relationship, (caterer) will apply one half of the reservation fee already paid and all additional payments to your new date. Should we be able to book your original date with a comparable event, (caterer) will apply all payments to your new date, less a $250 administrative fee. Should you wish to reschedule your event, we will make every effort to accommodate your request.

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Sample Copy for Contracts/Agreements #1- Count & Guarantee

These are simply educational examples of possible contract language. Don’t use any of these clauses without approval from your attorney.

Customer Count and Guarantees

a) The number of guests listed on this contract shall be paid by the customer, even if the number of guests served is lower than the guaranteed number.

b) All costs are based on the guarantee given. However, a customer may reduce the given guarantee by up to 10 percent, as long as the customer notifies ABC Catering of the reduction more than 72 hours before the event.

c) Caterer has extensive experience in determining and preparing the correct amount for each menu item for the guaranteed group size. It is our custom to prepare enough extra to feed groups that eat more than the usual amount of food. However, in no case are we required to have extra food for numbers higher than the guarantee given.

d) Customer agrees to pay additional, at the agreed per-guest price, for any guests that increase the guarantee, even if the food is available.

e) If the final guest count is 10 percent greater than the guarantee, an additional 10 percent service charge will be paid by customer to cover the extra burden placed on the staff at the event.

f ) Customer agrees that the caterer will retain all foods and beverages remaining at the conclusion of the event that have been brought by the caterer.

g) The final count, or guarantee, is due seven business days in advance of the event. Following the final count, the number may not be lowered, but may be raised. A 15 percent surcharge may be added to cover additional last-minute expenses of acquiring added food and beverages for the additional guests.

h) To facilitate our ordering, we require your confirmed minimum number of guests ten (10) days prior to your event. This number may not be decreased. Our quoted prices reflect current market conditions for food and services. Menu substitutions may be made of equal or superior quality without notice due to product availability.

i) A confirmation of the guest count shall be made no later than fourteen (14) days prior to the event date. Thereafter, the number may be increased at the quoted per person cost, but not decreased. (caterer) will be prepared to serve a maximum of 5 percent over the guaranteed count. Additional place settings will be charged at an additional $6 each. Children under age 10 and vendors will be charged 50 percent of the menu price and given a special beverage rate. All food and beverage must be purchased from (caterer) and consumed on the premises.

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A Very Unique Hiring Video!

My long time friend LeAnne Schwartz from LA Spice catering and events in Los Angeles sent me this link. It is a rather interesting video that a restaurant uses to hire part-time servers. I just think it is very creative (if you like this kind of stuff like I do) and perhaps this type of concept could be used to hire part-time event staff.

Also, if you check out their website you will see their very concise and useable employment application for those who watch the video to use.

Here it is:

Thanks LeAnne!

A Solid Preflight Proposal Checklist

Before a proposal is sent to a prospect, it should be reviewed by at least one person other than the one who wrote it. In this manner, most of the silly and sale-losing errors may be caught. Items for your checklist should include:

a) Are all the parts enclosed?

b) Are the buyers’ names spelled correctly?

c) Is the date correct on all company records?

d) Is the day of the week included with the date?

e) Has the menu been approved by the chef?

f) Has the price been figured correctly?

g) Is the buyer aware of what they are paying for menu, staff, rentals, etc.?

h) Is the buyer aware of all additional and potential additional costs?

i) Has the salesperson used words that will be understood and/or liked by the buyer?

j) Has the deposit been requested?

k) Has the buyer been told how to pay the deposit?

What other items should be on the checklist?

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Stealth Price Increases

Yipee!

This post can now be found at CateringGuru.com.

Head on over to the CG site to learn about stealth price increases.

Discussion Points For Your Next Meeting - #2

 This is the second of several posts that are being presented with some of my newest "original" thoughts that hopefully will offer my readers the opportunity to stretch their minds and creativity. I am continually thinking about new ways to understand the process of selling catering. So, please review these and discuss their possible meanings with your fellow team members or with yourself in the privacy of your own mind.

1. Every script and gesture needs to delineate the selling goals and advance towards a successful sale.

2. Selling is not lecturing.

3. Sell the event that they envision, but protect them from making mistakes.

4. Musicians practice four hours each and every day. When do salespeople practice?

5. Taking on challenges that are impossible to solve is what makes people greater!

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News: I'm Helping An Amazing Marketing Company - NuphorIQ!

I had a great day yesterday getting to know the team of marketing professionals at NuphorIQ located in Elk Grove, IL (a suburb near O’Hare Airport). NuphorIQ is “a creative agency” specializing in creating, designing, and establishing marketing programs for all sizes and types of catering companies.

I’m excited to announce that I am now working with NuphorIQ in a consulting/advisory capacity to assist their marketing team in developing cutting-edge marketing programs for catering companies that wish to increase their share of business in their markets.

I’m very impressed with the skills and creativity of the NuphorIQ marketing team. They understand what catering is all about! Over the last seven years, these professionals have been the in-house marketing division of Tasty Catering. Tasty Catering’s growth has been stunning, even through the recession because of the marketing strategies of the NuphorIQ team.

Some of our readers will remember that NuphorIQ had a booth at the last Catersource conference. This has resulted in more and more caterers becoming aware of their abilities to help caterers increase their business and profitability. Go to their website and check out their success story. Here is the link: http://www.nuphorIQ.com/

I’m proud of my decision to join the NuphorIQ marketing team as a consultant/advisor and I’m looking forward to helping their catering customers achieve amazing success. So, if you are seeking to start or enhance your marketing contact me and I’ll share more of the reasons why I’m positive that NuphorIQ is the way to go for any of your marketing needs from website development to newsletters and much more. You can reach me at my new email address: mikeroman@cateringguru.com - 

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CateringGuru.com - another way to reach me!

The first thing you need to remember is that Mike Roman (that's me) is still involved with Catersource even though I've sold my controlling interest to the very cool professionals at UBM of London. I will be teaching six educational sessions at Catersource 2012, assisting in the Opening Ceremonies, hosting a breakfast along with Meryl Snow, and a bunch more. I just won't be working as hard as I have done for the last twenty years behind the scenes! This is a very good thing.

The next thing you should know is that I am moving ahead with my continued consulting, training and public speaking activities under a new company which I've named CateringGuru.com, Inc. This is in addition to my work with the new UBMCatersource team of professionals which actually, except for ownership, is still the same amazing team of people we've had at Catersouce for the last five years!

You can expect the same level of quality education, events, and customer service at both Catersource 2012 and Catersource Magazine as you have become used to over the last years. In fact, Catersource 2012 will be the best conference and tradeshow we've ever offered.

I (and Bernice) am very happy with the new relationship with UBMCatersource. I get to do what I love to do best... teach, with less pressure and less work! I also get to pursue some new opportunities and have more time for travel with Bernice. In addition to continuing my consulting with caterers, I am planning to consult with some vendors and suppliers to help them develop and sell their products to the catering industry.

So, as far as I'm concerned, I have much to look forward to. I will be keeping my involvement in the growth of UBMCatersouce while having the joy of growing my own new business interests! Feel free to give me a shout using my newest email address: mikeroman@cateringguru.com.

We are happy & relaxed!

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The Power Of "No Charge" Items

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A Unique Website Idea From Esprit Event Catering

Spoke this morning with Ellen Vaknine of Esprit Events Catering in New York City. After reviewing their website, I was happily struck by the page that contained the info below. Please review and decide if some similar concept might be good for your website.

CATERING DEMYSTIFIED - 
HOW TO TALK WITH A CATERER

Selecting a caterer should be fun, not stressful.  The more you know about how a caterer works, the easier it will be to interview caterers.  With that in mind, we're providing this "cheat sheet" for your reference.

WHAT YOU NEED TO KNOW FIRST:  

From a caterer's perspective every event is slightly different based on the venue, the guest count, the service style and the client's special requests.  Therefore, there are certain questions that any good caterer is going to ask you - and if you've already had a chance to think about these issues, it will save both of you time -

"What type of event are you envisioning?  A formal plated meal, family-style or buffet?  For a reception - do you want a combination of passed hors d'oeuvres and stationary items.  Do you want live stations where a chef prepares guests' selections to order?

"Have you already selected a venue?

"What kind of bar do you want - wine & beer, a full open bar, champagne?

"Are there are specific themes you want to incorporate into your event - whether they be ethnic cuisines, colors, flavors, or another special theme that you have

"Approximately how many guests do you expect?  If children are in attendance, do you want a separate menu for them?  Will they be seated intermingled with the adults or in their own section?

WHAT YOU NEED TO ASK THE CATERER 

* How many years have you been in the catering business?
* Do you have sample menus with pricing that I can see?
* Do you offer a kid's menu for the younger children?
* What's included in the catering price, and what do you price separately? (food, beverages, service, centerpieces, linens, china, chair covers, other rentals, etc.)
* How do you charge for liquor; straight per person, or per the bottle?
* What is the ratio of staff to guests?
* How do you price your staffing and gratuities?
* Can we make an appointment for a bar mitzvah food tasting? Is there a change for this?
* Will you provide us with a complete and signed catering price list that also includes your payment/cancellation policy?
* When do you require the final bar mitzvah head-count?
* Do you have liability insurance?
* May we speak to one of your recent Bar Mitzvah catering client?

Here is the link for this page on Esprit Events website: http://www.espritevents.com/CateringDemystified.html

The Three Traps of Closing a Sale - #3

When it comes to closing sales, catering people can be their own worst enemies. They may spend too much time thinking about the wrong things when preparing for their sales presentations. Here are some ideas to correct your thinking and avoid the traps that exist while closing a sale.

Trap 3: The decision to buy is first made in the mind of the salesperson.

If salespeople think that they can’t or shouldn’t make a sale, then they won’t. If they think that the fences are too far away for their talent to hit the ball over, then they won’t. If they think that the shopper isn’t going to buy today then they won’t sell anything until tomorrow. It’s just that simple.

What most salespeople do is size up a shopper as soon as they first meet. The salesperson looks at the way shoppers dress, the cars they drive, the houses they live in, the jewelry they are wearing.

This is how they decide if the fences are too far away. In this career-killing trap, salespeople determine too quickly that there is no chance of selling a particular shopper today. Even worse, many salespeople believe that the majority of shoppers are “just looking” and don’t plan on buying today.

A professional, knowledgeable, caring sales talent understands that most shoppers are going to purchase from someone sooner or later. In the sales winner’s eyes, sooner is today and the reason they are going to buy today is the salesperson’s ability to “see” the sale in their own eyes first. The fences are never too far for these winners; they will hit home runs!

The salesperson earns the right to close a shopper with the time and energy that he or she has invested. Shoppers must let salespeople explain their prices and procedures for reserving a date. It’s the price they pay for the energy and education we provide to them. Closing shouldn’t be a chore for the salesperson.

When it’s done by skilled salespeople, it can be a beautiful thing—even a work of art (performance art)—when undertaken by skilled salespeople. The best salespeople are always expert closers—and yet have the most clients who love them!

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The Three Traps of Closing a Sale - #2

What a day!

This post has been moved to CateringGuru.com.

The Three Traps of Closing a Sale - #1

Hooray!

This post has been moved to CateringGuru.com.