Looking for some pricing advice...

I hope you get it Roger. That order being spread out like that should be a breeze.

Sorry, thought you meant two extra hands at 4 hours. Your right, 2 hands at 4 hours would be it under normal circumstances. So with overtime & payroll matches & contributions would be closer to $100 or so.

I’m going to give some thought to this bodega, thanks for your reply.

Someone here on the 'Tank introduced me to “contribution margin” and it revolutionized my pricing model. I look at high menu priced items . . . and large single-customer orders . . . in terms of final contribution to the profit (as well as the standard stuff). I look at the final dollars left after food and labor costs for these orders, because the rest is a much higher proportion of profit that usual menu items. I’ve already paid my fixed costs and most of the semi-fixed costs with my weekly sales; this order is all my money after food and labor. If I can make food and labor under 50%, then it is most likely worth my while/45% is a no-brainer . . . others may aim at different thresholds.

My $520 in box lunches netted me 384.63, which is on 25.8% food/labor. Sure, I should pay myself a wage, and change the ratios . . . it’s money in my pocket either way.

I got the order. They ordered a lg pizza and some wings Friday to sample. I buttered them up a little bit by not charging them like the other shops did. They were insisting on paying but I wouldn’t accept it, so I’m sure that left a good taste in their mouth when it came time for them to make a decision on who they were going to order from. They said they loved the food and sent a person down to the shop to place the order. It’s nice to get decent sized orders like this. I also had one of the local schools place a big order for next Thursday as well. My shops have been pretty slow lately so these big orders are at a great time.

Hey Roger,

Congrats on getting the order! If you’re looking for more information on catering, we have an article coming out in our May issue (mailing out May 12) that will include interviews with operators, pricing advice etc. Be sure to check it out.

Liz Barrett, editor-in-chief
PMQ’s Pizza Magazine