05/29/2026
STOP Undercutting Yourself! 👇
Ever wonder if you’re pricing your catering orders correctly? Here is the secret to accurately pricing a real catering order for 85 guests using a simple, powerful formula:
Price = Total Cost / (1 - Profit Margin)
For this specific order, let’s break down the Total Cost of $713:
đź’ˇFood: $360
đź’ˇLabor: $250
đź’ˇSupplies: $50
đź’ˇDelivery: $50
If you want a desired 15% Profit Margin (0.15), the formula becomes:
Price = $713 / (1 - 0.15)
Price = $713 / 0.85
This gives you a final price of $838.
To make it simple for your customers, break it down per person: $838 / 85 guests = $9.87 per person (plus tax).
This is exactly how you price your catering accurately to ensure you make a profit on every order!