Mirasol Manalang
BTVTE FSM 3A
I.
IDENTIFICATION
___________1. It is a service business, and you need to price yourself accordingly.
___________2. The first step of this method is to determining your pricing is to compare the
pricing data you compiled in your competitive survey.
___________3. It means knowing how to control food, labor, and other costs is a crucial part of
running a thriving catering business
___________4. These are variable costs and generally include supervision, profit, freight,
software, and other intangible items.
___________5. It is a more tedious process, but it is important nevertheless. Only by carefully
measuring your costs will you be able to check that your prices are correct and measure your
profit.
___________6. It is the extent to which price is an important criterion in your customer’s
decision-making process; a price-sensitive customer is likely to notice a significant price rise and
switch to a cheaper supplier.
___________7. These must accurately reflect the level of quality and service you’re going to
offer.
___________8. One common pitfall in catering in which caterers often serve too much or don’t
keep portion sizes the same.
___________9. They are able to provide consumers with the lowest prices for goods. They make
their money by being extremely efficient, selling high quantities of products at a relatively low
margin.
___________10. Depending on your __________ strategy, you’ll want to either be priced
competitively with your colleagues or priced above them if you’re planning to offer a more
premium catering service.
II.
TRUE OR FALSE.
___________1. The more quickly you can prepare food for a job, the better. The lower your total
labor costs, the more competitive you’ll be.
___________2. Service charges range from about 15 to 22 percent. Charge your client based on
the pre-tax amount of his bill.
___________3. There’s an exact simple mathematical formula to follow for calculating the exact
price of your catered meals.
___________4. . Caterers follow the “being the low-cost producer” pricing strategy, providing
unique goods and services.
___________5. Correct pricing will help you attract customers and maximize potential profit.
Pricing can be complex, so this chapter focuses on setting prices with confidence.
___________6. It is not important to charge prices that reflect the ingredient quality and level of
sophistication of your offerings.
___________7. The more costs you can control and the more you can save by running your
business intelligently, the more profitable you’ll be.
___________8. Butchering, cutting, trimming, and deboning your own whole birds, whole fish,
and larger cuts of meat will cost you more money. Because of your lack in expertise, there a
tendency to waste meats.
___________9. The more you know about how to maximize food use and minimize waste, the
more profitable you’ll be.
___________10. Depending on the caterer, a similar meal must have the same price range
across the country.