How Much To Charge Caterer / Consistant Business

Business By shaynarogo Updated 13 Sep 2012 , 10:30pm by jason_kraft

shaynarogo Posted 13 Sep 2012 , 8:56pm
post #1 of 2

I recently started working with a caterer. I bake in their industrial kitchen and they reimburss me for ingedients and materials.

That being said, how much do I charge them? Normally I charge about $2 a cupcake (more if their is fondant detail) but since I'm not paying for utilities/start up/ingredients, how do I figure my cost? A per hour charge doesn't always work b/s sometimes I'll take longer and that's on my own accord, or I'll make a mistake and it'll take longer to fix it.

Also - how much do you charge for whoopie pies?

Thanks!

1 reply
jason_kraft Posted 13 Sep 2012 , 10:30pm
post #2 of 2

A per hour charge is exactly what you should go with, since that is your primary cost. Add the cost of your labor and any allocated overhead, then add a markup of 15-40% for your profit depending on the market value of your products.

If a product takes longer to make because it's more complicated, it should cost more. If you mess up that's on you, but when you figure labor estimates you don't count on 100% efficiency, so it should even out.

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