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Another Pricing Job! I want your opinions!
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G's BBQ
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PostPosted: Wed Apr 18 07 12:05 am    Post subject: Another Pricing Job! I want your opinions! Reply with quote

Just got a call to do a dinner for our Govenor and other dignitaries from our state for the opening of the State fair here.

150 to 200

Brisket
Chicken
My meaty beans
Cut Corn
Green Salad
Rolls
Pies

Of course they want a good price...

I'm thinking 13 to 13.95

I think I'm too low.

What do you all think?
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BBQMAN
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PostPosted: Wed Apr 18 07 12:39 am    Post subject: Reply with quote

That meal, with deluxe desserts like pie would be $15.45 at BBQMAN Inc.! Very Happy
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G's BBQ
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PostPosted: Wed Apr 18 07 12:40 am    Post subject: Reply with quote

BBQMAN wrote:
That meal, with deluxe desserts like pie would be $15.45 at BBQMAN Inc.! Very Happy
I knew I was to low...Thanks BBQman...
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sseige
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PostPosted: Wed Apr 18 07 3:30 am    Post subject: Reply with quote

BillyBones is doing a seminar for the Michigan BBQ association in Oct called "You should be charging 2 dollars more a plate and I'll tell you why" I think we are afraid of charging to much because we could miss a gig. Some uninformed people associate BBQ with "Cheap" heck I can do that on my grill at home why should I pay those kinds of prices. Education is the key educate your clients and then deliver above their expectations and give them the sizzle Very Happy
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Big Tom
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PostPosted: Wed Apr 18 07 3:41 am    Post subject: Reply with quote

Good advice on the pricing. Billy Bones offers alot of insight to being successful with BBQ catering for special events.

I agree that BBQ catering is viewed as a cheap alternative. I have a local bbq restaurant that does do some really inexpensive delivery catering. I would not want to have to compete with them for customers, my client base is one that I have built with championship quality BBQ and sides, not mass produced smoked & canned stuff dumped in a chafing dish.

Others have also mentioned never set your prices too low, difficult to be able to raise them and keep customers.
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G's BBQ
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PostPosted: Wed Apr 18 07 3:54 am    Post subject: Reply with quote

Well, here is another spin. I bid it at 14.95. They said its a bit to high. Offered 12 dollars with an advertising spot in the Fair program and on the website with a link to my website...

What do you think? I know of no BBQ caterer in the area that would do it for that price.
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DawgPhan
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PostPosted: Wed Apr 18 07 4:44 am    Post subject: Reply with quote

GordonsBackyardBBQ wrote:
Well, here is another spin. I bid it at 14.95. They said its a bit to high. Offered 12 dollars with an advertising spot in the Fair program and on the website with a link to my website...

What do you think? I know of no BBQ caterer in the area that would do it for that price.


well how much is a spot in that program worth? If it is worth $500 then would be getting $14.50 a person in value. If they are getting thousands of visitors to the website and thousands of programs then it might be worth it...everything has a value...
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Texman
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PostPosted: Wed Apr 18 07 4:44 am    Post subject: Reply with quote

Gordon’s bbq we did quick costs and came up with less than $600 for 200 w/5 helpers. At $12 equates to $2,400 gross and a fair ROI…..we think.

What did you come up with on costs vs ROI?

The net difference of the price w/advertising equates to $590 in the fair program and on their web site….is this exposure and value worth it to you?
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G's BBQ
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PostPosted: Wed Apr 18 07 5:03 am    Post subject: Reply with quote

Well guess what, it wont be in "thee" program. its been printed already. But I will be in all other media. So I guess it could be worth it. I sent over a new price of 12.50 and said I need a listing of all media that I will be in. I also changed it to pulled pork instead of brisket. Pork seems to be holding steady at the moment..Beef prices have been getting out of hand lately and I hear its only gonna get worse as the summer approaches with the corn feed shortages. Anyone else seeing a hit on prices? My Tri-tip has already jumped 40 cents a lb.
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G's BBQ
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PostPosted: Wed Apr 18 07 5:06 am    Post subject: Reply with quote

DawgPhan wrote:
GordonsBackyardBBQ wrote:
Well, here is another spin. I bid it at 14.95. They said its a bit to high. Offered 12 dollars with an advertising spot in the Fair program and on the website with a link to my website...

What do you think? I know of no BBQ caterer in the area that would do it for that price.


well how much is a spot in that program worth? If it is worth $500 then would be getting $14.50 a person in value. If they are getting thousands of visitors to the website and thousands of programs then it might be worth it...everything has a value...


They havent told me what it is worth, but I'm sure its close to that.
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G's BBQ
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PostPosted: Wed Apr 18 07 5:08 am    Post subject: Reply with quote

sseige wrote:
BillyBones is doing a seminar for the Michigan BBQ association in Oct called "You should be charging 2 dollars more a plate and I'll tell you why" I think we are afraid of charging to much because we could miss a gig. Some uninformed people associate BBQ with "Cheap" heck I can do that on my grill at home why should I pay those kinds of prices. Education is the key educate your clients and then deliver above their expectations and give them the sizzle Very Happy


I agree 100 %...
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BBQMAN
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PostPosted: Wed Apr 18 07 5:20 am    Post subject: Reply with quote

Pulled pork is also a lot easier to cook than brisket...................

Good luck Gordon! Very Happy
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G's BBQ
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PostPosted: Wed Apr 18 07 5:21 am    Post subject: Reply with quote

BBQMAN wrote:
Pulled pork is also a lot easier to cook than brisket...................

Good luck Gordon! Very Happy


Yup, less to worry and a better yield...thanks bro
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G's BBQ
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PostPosted: Wed Apr 18 07 6:02 am    Post subject: Reply with quote

Texman wrote:
Gordon’s bbq we did quick costs and came up with less than $600 for 200 w/5 helpers. At $12 equates to $2,400 gross and a fair ROI…..we think.

What did you come up with on costs vs ROI?

The net difference of the price w/advertising equates to $590 in the fair program and on their web site….is this exposure and value worth it to you?


My costs are higher due to my overhead.
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marvsbbq
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PostPosted: Wed Apr 18 07 6:30 am    Post subject: Reply with quote

I bid one of this SAME kind of deal 2 years ago. EVEN had the ENTIRE committee (minus the Gov) here at my house for 'Sampling'. Did NOT get the job because the 'other' bbq caterer offered ONE more side. Had I known, I would have offered more sides too..They DID tell me my BBQ was better than the one they went with...What ever that's worth Rolling Eyes

Ya win some, ya lose some...Life goes on. Very Happy
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G's BBQ
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PostPosted: Wed Apr 18 07 7:01 am    Post subject: Reply with quote

marvsbbq wrote:
I bid one of this SAME kind of deal 2 years ago. EVEN had the ENTIRE committee (minus the Gov) here at my house for 'Sampling'. Did NOT get the job because the 'other' bbq caterer offered ONE more side. Had I known, I would have offered more sides too..They DID tell me my BBQ was better than the one they went with...What ever that's worth Rolling Eyes

Ya win some, ya lose some...Life goes on. Very Happy


See, I just dont get that. Why didnt they ask about an extra side. I lost a gig because of something similiar. I bid a hamburger and dog & chicken. Then I find out they went with just burgs and dogs and never asked me a price on just those items. And it turned out the other bbq people burnt/hockey pucked most of the food Laughing ...
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chef_hog
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PostPosted: Wed Apr 18 07 7:35 am    Post subject: Reply with quote

Gordon,

In the market reports that I have seen over the last couple of weeks because of the shortfall of feed corn due to more of it being put into ethanol production (farmer are getting more money for this than feed) they expect an increase of 2.5 to 3 % increase in meat prices overall markets, beef, pork, poultry by Summer. As the additional 80 ethanol plants come on line there they are expecting further increases of an additional 5 to 10%. It is going to hurt the small BBQ guys restaurants and caters the most..
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marvsbbq
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PostPosted: Wed Apr 18 07 7:59 am    Post subject: Reply with quote

I can absorb a SMALL price increase of product. However, if it starts getting out of hand and REALLY cutting into my profits....MY prices go up as well...viscous cycle Shocked
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marvsbbq
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PostPosted: Wed Apr 18 07 8:19 am    Post subject: Reply with quote

GordonsBackyardBBQ wrote:
marvsbbq wrote:
I bid one of this SAME kind of deal 2 years ago. EVEN had the ENTIRE committee (minus the Gov) here at my house for 'Sampling'. Did NOT get the job because the 'other' bbq caterer offered ONE more side. Had I known, I would have offered more sides too..They DID tell me my BBQ was better than the one they went with...What ever that's worth Rolling Eyes

Ya win some, ya lose some...Life goes on. Very Happy


See, I just don't get that. Why didn't they ask about an extra side. I lost a gig because of something similar. I bid a hamburger and dog & chicken. Then I find out they went with just burgs and dogs and never asked me a price on just those items. And it turned out the other bbq people burnt/hockey pucked most of the food Laughing ...


Gordon (and others) the only thing I can think of to do is... Ask them EXACTLY what do you want me to bid on. Also, if you seek OTHER bids, are you going to compare 'apples to apples'. In other words, EXACT menus. labor costs etc.

Another job (a state job where they had to meet per diem) another caterer (NOT a bbq place) offered 2 meats (same quantity as I but not same meats NOR cooked same way and NOT cooked on site). I was offering 3 sides and the other guy was offering SEVEN sides...Yes, I said SEVEN SIDES!!! I REFUSE to 'give" my stuff away! I am beyond that in my career...Thank GOD!
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Hogwild
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PostPosted: Wed Apr 18 07 8:43 am    Post subject: Reply with quote

chef_hog wrote:
Gordon,

In the market reports that I have seen over the last couple of weeks because of the shortfall of feed corn due to more of it being put into ethanol production (farmer are getting more money for this than feed) they expect an increase of 2.5 to 3 % increase in meat prices overall markets, beef, pork, poultry by Summer. As the additional 80 ethanol plants come on line there they are expecting further increases of an additional 5 to 10%. It is going to hurt the small BBQ guys restaurants and caters the most..


Chef hog is correct. they will all go up. The pressure on beef may actually be a little less because they can utilize the distiller's grains from the ethanol production in the feedlot. What happens in some of the export markets will make a difference, too.
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