A quotation deviation in the hospitality and events industry is the difference between the original quotation and the final price. Small deviations of 5-10% are often acceptable, but larger differences require transparent communication and prior agreements with your customer.
What exactly does quotation deviation mean?
A quotation deviation is the difference between the price you originally communicated and the amount you ultimately charge. In the catering and events industry, this occurs regularly due to the dynamic nature of events.
For you as a supplier, a price deviation quotation means that you have to explain why the costs have changed. For customers, it can damage trust if they do not know why the price is higher than expected.
Common causes include:
- Changes in the number of guests
- Additional services added during planning
- Unforeseen costs such as additional staff or materials
- Price fluctuations of ingredients
By what percentage can a quotation deviate from the final price?
There is no legal limit for quotation price differences, but in practice, hospitality professionals often apply a margin of 5-10% for unforeseen costs. Larger deviations always require prior communication.
When it comes to catering quotes, transparency is more important than the exact percentage. Therefore, always build in a buffer for unforeseen expenses and communicate this clearly to your customer.
Industry standards for event quotes:
- Up to 5%: Often acceptable without prior notification
- 5-10%: Communicate in advance about possible additional costs
- Above 10%: Always ask permission for additional costs
When can you modify a quotation after acceptance?
You may modify an accepted quotation if there are significant changes to the assignment or unforeseen circumstances beyond your control. Always do this in consultation with your customer.
Valid reasons for changing a quotation:
- Customer substantially changes the number of guests
- Addition of extra services or menu items
- Location changes that incur additional costs
- Extreme price increases for ingredients
- Unforeseen regulations or safety measures
It is important that you communicate these changes immediately and do not wait until the final settlement. Transparency prevents discussions afterwards.
How can you avoid unpleasant surprises when you receive your final bill?
Avoid surprises by making clear agreements about possible additional costs and communicating regularly about changes during the planning process.
Practical tips for transparent hospitality prices:
- State in your quotation which costs are variable.
- Send interim updates in case of changes
- Agree on approval procedures for additional work
- Use a quotation indicator tool to create realistic expectations
- Document all changes in writing.
A good system helps you keep track of all changes and communicate them directly to your customer. This prevents small adjustments from piling up and turning into big surprises.
What do you do if the final price is higher than the quote?
As a customer, you can check the event cost calculation and request a detailed explanation. You are entitled to transparency about where the additional costs come from.
Steps you can take:
- Request a detailed cost breakdown
- Check whether changes have been communicated in advance
- Negotiate unreasonable additional costs
- Look for compromises for future cooperation
- Document everything for possible legal action
Many disputes arise due to miscommunication. First, try to talk to your supplier to find a solution that works for both parties.
How do you create realistic quotes as an entrepreneur?
Set realistic catering prices by calculating thoroughly and building in buffers for unforeseen costs. Use historical data to improve your cost calculations.
Important steps for accurate pricing:
- Calculate all costs, including personnel, transport and materials.
- Build in a buffer of 5-10% for unforeseen expenses.
- Use formats for recurring tasks
- Link ingredients to dishes for automatic purchasing calculations
- Analyse your margins per dish and event
A good system helps you to create consistent and realistic quotes. By calculating all costs automatically, you reduce errors and ensure that you don’t forget any important cost items.
Quotation deviations are normal in the dynamic hospitality and events industry, but transparent communication is the key to satisfied customers. By making clear agreements and communicating regularly about changes, you build trust and avoid unpleasant surprises. Catermonkey helps hospitality professionals streamline their quotation processes and set realistic prices that satisfy both customers and entrepreneurs. For more information about how we can help you, please contact us.
Plan your brainstorm with Catermonkey!
Do you have questions about quotation deviations or would you like to know how Catermonkey can support your company in streamlining your quotation processes? We are happy to help! Schedule a no-obligation brainstorming session in which we can explore the possibilities for your hospitality business together. Whether you come with concrete ideas or are simply curious about our solutions, we are here to help.
