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Restaurant pricing
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Posted by snappybob SaTexas (My Page) on Mon, Sep 26, 05 at 10:09
| I'm thinking about marketing some of my vegetables to small restaurants. The Mom and Pop types. How much below retail do these type of establishments usually pay for produce? |
Follow-Up Postings:
RE: Restaurant pricing
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| usually resturants buy in case lots. If you are selling your items in amounts smaller than a case than you can charge retail with no qualms. This is an added value service you are providing to the chefs. |
RE: Restaurant pricing
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I sell to a few restaurants and a health food store. I grow on a little more than 1/8 acre, which is part of my back yard. I earned a bit more than $5,000, so I don't depend on it to pay the mortgage.
Anyway, I found that the smaller mom and pop restaurants in my area are mostly concerned (as are their customers) with price. I have found the greatest interest among chefs at high end restaurants where the quality of my produce is most appreciated. (I grow heirloom tomatoes and basil.)However, even though they appreciate good produce, I found that they are still concerned with price. I plan on charging around $2.85-$3/lb for tomatoes next year and $10-$12/lb for freshly picked high quality basil.
I have raised my prices for the past two years in order to determine a fair price for myself and my customers. I'm still not sure if I'm charging too much or too little.
That's my two cents.
Mike |
RE: Restaurant pricing
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| The wholesale price is about 2/3 of retail. If you are selling less than case lots, you can easily charge 10% more. Be sure that your minimum order is enough to make the stop worthwhile. You will know if it is not. I sell to everyone at the same price. That way, there are no complaints. If the price is too high for the restaurants, they won't buy it. Usually my quality is much better than they can get from a distributor. I provide the service of selling smaller quantities and will deliver to them. I try not to be the cheapest in the market. Quality, Price, Service. Pick two. Greg |
RE: Restaurant pricing
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| Thanks Greg, thats what I was looking for. Sort of a rule of thumb. BTW, I like your slogan. |
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