A fixed quote is a price quotation for catering or events where you agree on a fixed amount in advance that will not change. Unlike variable prices, your customer knows exactly what the event will cost, regardless of minor changes in the execution. This provides clarity for both parties and prevents surprises afterwards.
What exactly does a fixed quotation entail?
A fixed quote means that, as a caterer or event organiser, you agree on a fixed amount for your services. This amount remains the same, even if minor adjustments are made during the preparation or execution.
The big difference with variable quotes is predictability. With a variable catering quote, costs can still go up or down during the process. Think of extra guests, changes to the menu or unforeseen circumstances. With a fixed quote, you eliminate this risk for your customer.
Both types are commonly used in the catering and events industry. Variable quotes are mainly used for large events where there are many uncertainties. Fixed quotes are used for standard catering assignments, business lunches or smaller parties where you can accurately estimate what is needed.
When should you use a fixed quote for your event?
You opt for a fixed quote when you can accurately estimate the scope and requirements of the event. This works perfectly for recurring assignments such as weekly company lunches, standard buffets or parties with a fixed number of guests.
Small to medium-sized events are ideal for fixed quotes. Think of birthday parties, weddings for up to 100 people, company drinks parties or workshops. With these types of events, you know exactly what you need to deliver and can accurately estimate the costs involved.
Customers who want budget certainty also prefer fixed quotes. This way, they know exactly where they stand and can plan their own budget better. For you as an entrepreneur, this often means faster decision-making and less negotiation afterwards.
How do you calculate a fixed quote for catering?
Start by calculating your direct costs: ingredients, staff, transport and materials. Add your desired profit margin to this and include a buffer for unforeseen expenses.
Follow these steps for a solid catering price calculation:
- Calculate your food costs per person based on the chosen menu
- Calculate how many staff you need and what this will cost.
- Add transport costs and any rental equipment
- Add up your overheads (insurance, administration, marketing)
- Add your desired profit margin (usually 20-40%)
- Build in a buffer of 5-10% for unforeseen costs.
Take seasonal influences on ingredient prices into account and always check your competitive position. A price that is too low may seem suspicious, while a price that is too high will scare customers away.
What are the advantages of a fixed quote?
The biggest advantage is budget certainty for both parties. Your customer knows exactly what the event will cost and can adjust their budget accordingly. For you, this means fewer discussions afterwards and faster payments.
Fixed quotations make your planning much easier. You know exactly what you need to deliver in advance and can tailor your purchasing and staff planning accordingly. This reduces stress and ensures smoother execution.
Customers appreciate the transparency and professionalism of fixed quotes. It shows that you know your stuff and have confidence in your own cost control. This increases your credibility and can lead to more referrals.
What are the risks associated with a fixed quotation?
The biggest risk is that your costs will be higher than expected. Rising ingredient prices, extra staff due to illness or unforeseen circumstances can significantly affect your profit margin.
Scope creep is a common problem. During the process, customers ask for small adjustments that together have a major impact on your costs. “Can we add some extra snacks?” or “Is it possible to stay an hour longer?” seem like innocent questions, but they cost you money.
Prevent these risks by:
- Make clear agreements about what is and is not included
- Build in a buffer for unforeseen costs
- Changes must always be confirmed in writing, with the associated additional costs.
- Regularly check and adjust your cost prices
How do you create a professional fixed quote?
Start with a clear structure that includes all the important information. Prominently state the date, location, number of guests, chosen menu and fixed price. Use your own branding to make a professional impression.
Ensure clear communication about what is and is not included. Explicitly mention items such as crockery, staff, transport and clean-up costs. This will prevent misunderstandings later on.
Important elements for a convincing catering quote:
- Clear description of all services
- Fixed amount with VAT clearly stated
- Payment terms and conditions
- Contact details for questions
- Validity period of the quotation
- Option for digital signature
Follow-up is important for your conversion rate. Send a friendly reminder after a week if you haven’t heard anything. Many customers simply need time to decide.
Important points to remember about fixed quotes
Fixed quotes offer clarity and professionalism, but require thorough preparation and cost control. Always ensure you have a realistic buffer and clear agreements about what is included.
The key to success lies in accurately estimating your costs and presenting your quote professionally. Invest time in attractive formatting and clear communication – this will pay off in more assignments.
Modern quotation software can significantly speed up your process. Instead of typing quotations manually, you can work with templates, automatic cost calculations and digital signatures. This saves time and reduces errors in your price calculations.
We help caterers and event organisers to professionalise their quotation management. From automatic cost calculation to attractive, customised quotations in your own house style – everything you need to improve your sales and reduce administration. If you have any questions about our solutions, please feel free to contact us.
Ready to take your quotation management to the next level?
Do you have ideas or questions about optimising your quotation management? Catermonkey is happy to help you figure out how our platform can support your business in professionalising your quotations and increasing your conversion rate. Whether you want to know how to create quotations faster, improve your cost calculations or streamline your administration, we are happy to help.
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