A fixed-price quote is not always a fixed price. Whether a quote is binding depends on how you draw it up and what conditions you include. In the hospitality and events industry, you can opt for fixed prices, variable prices or a combination of both. Transparent communication about price agreements prevents misunderstandings and helps protect your customer relationships.
What does a fixed price in a quotation mean?
A fixed price in a quote means that you agree on a fixed amount for your services, regardless of any cost increases. This gives customers certainty about their budget and prevents discussions afterwards.
In practice, you often work with a mix of fixed and variable elements. For example, you can agree on a fixed amount per person for the menu, but apply variable costs for staff and transport. This gives you flexibility while still providing your customer with clarity about the main costs.
When requesting catering quotes, it is important to clearly state which elements are fixed and which are subject to change. Consider the number of guests, specific requirements, or changes to the menu. By agreeing on these details in advance, you can avoid unpleasant surprises for both parties.
When is a quotation legally binding?
A quotation becomes legally binding when the customer accepts it within the period of validity. This usually takes place through the customer’s signature or written confirmation.
You can protect yourself by including clear terms and conditions in your quote. Always state a validity period, for example 30 days. After this period, you can adjust the prices if necessary. You can also add conditions such as “prices subject to supplier rates” or “prices will be adjusted in the event of changes to the number of guests”.
For event quotes, it is wise to work with a deposit. This protects you against last-minute cancellations and shows that the customer is serious. Make clear agreements about what happens in the event of changes to the assignment.
What factors can influence the price of your quote?
Various external factors can influence your catering prices. The most important ones are ingredient prices, staff costs and seasonal changes.
Ingredient prices fluctuate constantly. Price changes are particularly common for fresh products such as meat, fish and vegetables. By linking your recipes to current purchase prices, you gain a better insight into your actual costs per dish.
Personnel costs can also change, for example due to collective labour agreement increases or if you need extra staff for complex events. Seasonal factors such as the rush around the holidays or summer holidays can also affect your prices.
| Factor | Impact | Solution |
|---|---|---|
| Ingredient prices | Direct effect op food costs | Regularly update prices |
| Personnel costs | Especially at large events | Using variable personnel costs |
| Seasonality | Busyness and availability | Set seasonal prices |
How do you communicate price changes to your customers?
Transparent communication about price changes in quotes is crucial for maintaining customer trust. Contact them as soon as you know that prices need to change and explain clearly why.
Call your customer personally to inform them of important changes. A phone call feels more personal than an email and gives you the opportunity to answer questions immediately. Explain the factors causing the price change and offer alternatives where possible.
Always send a written confirmation after the meeting. This will prevent misunderstandings and ensure that everyone is clear about the new agreements. Also give your customer the opportunity to adjust the assignment if the budget becomes a problem.
What are the advantages of variable prices in quotations?
A variable quote offers flexibility for both you and your customer. You can respond more easily to changes, and your customer only pays for what they actually purchase.
For catering, this is particularly useful when it comes to the number of guests. Instead of a fixed amount, you can work with a price per person. If more or fewer guests end up attending, you can automatically adjust the bill. This prevents discussions about too much or too little food.
You can also apply variable prices for additional services such as personnel, transport or materials. This way, your customer only pays for what they need and you can better cover your costs. This makes your quote fairer and more transparent.
Conclusion: smart quotation management for your business
A smart mix of fixed and variable prices gives you the flexibility you need in the hospitality and events industry. By making clear agreements and communicating transparently about changes, you build trust with your customers.
Professional quotation management starts with the right tools and processes. By digitising your quotations and working with templates, you save time and prevent errors. Automatic calculations of your purchases and real-time insight into your margins help you make better price agreements.
We help catering companies and party professionals to professionalise their quotation management. With our software, you can quickly create customised quotations, automatically gain insight into your costs and easily make changes. Would you like to know more about how this can help your business? Schedule a brainstorming session to discuss the possibilities. This will leave you with more time for what really matters: organising amazing events for your customers.
Plan your brainstorm with Catermonkey!
Do you have ideas or questions about how to improve your quotation management? Catermonkey would be happy to discuss how our platform can support your business. Plan your brainstorm with Catermonkey! During this no-obligation session, we will discuss the options for your situation together. Schedule your brainstorming session here and discover how you can spend more time on what is really important for your business.
