Catering services are everywhere, which makes it quite overwhelming when it comes to hiring a company for your event or occasion. However, knowing some facts about how caterer service providers price their services can help you narrow down your options and also help you tailor the right service to your particular budget. Read on to learn about the top 3 pricing methods that caterers use for their services and how they differ from each other.
General catering cost
The type of pricing system a caterer uses will not necessarily make one company more affordable than the other. The total cost of your catering service will depend on several factors, primarily the size and scope of your event, and the additional services you choose to accommodate your prepared meals. On the other hand, the type of pricing system can provide sets of benefits in terms of convenience, efficiency, and transparency.
Understanding where your service costs are coming from is a great incentive for clients when hiring a caterer. So while the pricing system does not make one company cheaper than another, certain pricing systems can make it more convenient for customers who want to understand how their final invoice was created.
The 3 main pricing systems used by catering companies:
Staggered – Tiered pricing is very popular due to its efficiency, but can sometimes cause confusion about what is included and what is not. In this pricing model, customers choose a level of catering based on the number of guests. It’s kind of like a preset package that includes the types of services and food they want. For larger groups, a higher tier is likely to be used, which may include more food and more service. In contrast, smaller parties would likely use a smaller or first-tier tier.
Repaired – Like a menu in a restaurant, many caterers use a prix fixe menu selection. This is a simple and straightforward pricing method, providing accurate descriptions and fixed-priced portions that do not change based on size, scope, or personal preference. This pricing model is often used for restaurants that have catering divisions, as well as independently owned catering companies. Customers enjoy this model because it is easy to understand and feels honest.
Personalized – Custom pricing is not that common as it tends to involve negotiation between the client and the company, but it is sometimes used in the catering industry, particularly for weddings. With this estimation model, clients and coordinators sit down and design a personalized catering menu according to the number of guests, food preferences and required services. During the meeting, both the catering coordinator and the client discuss the best prices for everything.
Regardless of the pricing model, a qualified caterer should be able to deliver outstanding results, delicious food, and professional service, all at a reasonable and honest price. To ensure you get the best price on your catered event, simply choose a company that has experience, integrity, and talent.
