Passing It On To Them
Costs are going up for Grace's catering business, and she's got to find a way to up the prices without getting customers ticked.
QUESTION: Grace has a small, family-owned corporate catering company. Their costs for things like flour and baking have doubled in the last few months. How do you figure out how much you can raise your prices without offending customers?
ANSWER: You have to explain to your corporate customers that it costs to make your products. Show them an invoice showing your cost of eggs and ingredients increase from 6 months ago to now. You have to give them a why and not just a what. Anyone that is your competition can either raise prices or go broke. They are using the same eggs. It’s going to come home to roost for everybody because egg prices and other prices have doubled. Ultimately that goes to the customer.