Calculate surcharge calculation in gastronomy
Nowadays, many prices in the catering industry are still calculated using the markup calculation. Here you can find out what you should pay attention to as a restaurant operator and what the advantages and disadvantages of this method are.
Determine the cost of a markup calculation
As an entrepreneur, your goal is to determine the manufacturing costs of a product as precisely as possible and, from that, the price derive that you can ask for the product in order to make a profit on the one hand, but also on the other hand to be competitive. Once you have determined the direct material costs of a product, you can use the so-called mark-up calculation to determine the sales price.
- The costs are divided into individual cost types. All material costs that are directly attributable to a product and that are incurred during its manufacture belong to the direct material costs. Assuming you own a pizzeria and the product under consideration is a pizza salami, then bet The direct material costs mainly consist of the dough, the tomatoes, the cheese and the salami together.
- The material costs are now used as cost drivers when allocating overhead costs and direct production costs.
Carry out the calculation
As an entrepreneur, you naturally want to generate a profit that is higher than if you invested your money risk-free in the bank. The price must therefore cover the entire cost and include a sufficiently large profit margin.
- When calculating the surcharge, you now determine certain surcharge rates based on the direct material costs, with the help of which the remaining costs (overheads + direct production costs) are added to the direct material costs will. These are usually several hundred percent. For example, if you have determined material costs of 1.30 euros for your pizza salami and choose one Surcharge rate of 400%, then you should get the pizza according to the surcharge calculation for 1.30 x 5 = 6.50 euros to offer.
- Of course, such a price calculation can be fatal. Especially if you, as a restaurant operator, also offer larger pizzas, then using this calculation method means that They offer the larger pizzas too expensive compared to the small pizzas and therefore almost exclusively order smaller pizzas will.
- Because if the pizza is 50% larger, then there are direct material costs of 1.95 euros. With the surcharge, the price is 1.95 x 5 = 9.75 euros. The employee has almost the same effort as with the smaller pizza. Whether you roll out a slightly larger pizza and top it with ingredients makes little difference to a skilled pizza maker. This makes the final price of the pizza too high and ultimately orders it less often, which is why you as an entrepreneur lose sales (and thus also profit).
- Calculation methods that better solve this problem are surcharge calculations, target costing or multi-level contribution margin calculations.
No matter whether you have your own shop, a restaurant or a company in ...
As you can see, calculating the cost and setting the price are not straightforward processes; However, they should be carried out carefully so that you do not calculate yourself out of the market.
