3 Common Ways Catering Services Are Priced

Catering services are everywhere, making it quite overwhelming when it comes time to hire a company for your event or occasion. However, learning some facts about how caterers calculate the prices of their services can help you narrow down the options, and also help you match the right service to your particular budget. Continue reading to learn the top 3 pricing methods caterers use for their services, and how they differ from one another.

Overall Cost of Catering

The type of pricing system a catering company uses will not necessarily make one company more affordable than the other. The overall cost of your catering will depend on several factors, primarily the size and scope of your event, and the additional services you choose to accommodate your catered foods. On the other hand, the type of pricing system can provide sets of benefits in terms of convenience, efficiency, and transparency.

Understanding where the costs of your services are coming from is a huge incentive for clients when it comes to hiring a catering company. So even though the pricing system does not make one company cheaper than another, certain pricing systems can make it more comfortable for clients who want to understand how their final invoice came to be.

Top 3 Pricing Systems Used by Caterers:

Tiered – Tiered pricing is very popular because of its efficiency, but can sometimes cause confusion on what’s included and what’s not. In this pricing model, clients choose a level of catering depending on the number of guests. It is somewhat like a pre-set package that includes the types of services and food they desire. For larger parties, a higher tier is likely used, which may include more food and more service. In contrast, smaller parties would likely use a smaller or first level tier.

Fixed – Like a menu at a sit down restaurant, many caterers use a fixed price menu selection. This is a simple and clear method of pricing, providing exact descriptions and portions with set prices that do not change according to size, scope, or personal preference. This pricing model is often used for restaurants that have catering divisions, as well as, independently owned catering companies. Clients enjoy this model because it is easy to understand and feels honest.

Custom – Custom pricing is not as common since it tends to involve client/company negotiating, but it is used in the catering industry at times, particularly for weddings. With this estimating model, clients and coordinators sit down and design a custom catering menu in accordance to guest count, food preferences, and services required. During the meeting, both catering coordinator and client discuss the best prices for everything.

Regardless of pricing model, a qualified catering company 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.

Satria Permadi

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