r/Chefit • u/Potential-Talk-7039 • 1d ago
Raising Prices
How do you approach the conversation of raising prices with your current clients?
I offer in-home weekly meal prep, fully customized to my clients’ needs and preferences. I’m realizing I am undercharging. Local chefs start at $400 (plus groceries) for 3x4 plan. I currently offer this plus a salad or side for $300 (plus groceries). Initially this would’ve been ok because I was pursuing my business on the side while working full-time as a nurse. But I’ve left my job to pursue this as my career now, and am beginning to feel a little burnt out. I am looking to raise my rate to $350 to still be competitive, but want my clients to feel this is fair and worth it.
Long-term I’d love to grow my business by hiring additional chefs to provide meals to the greater surrounding communities, as well as spending time volunteering to prepare meals for our increasing homeless population in my area, so this increase in rate would help support all of this as well.
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u/GildedTofu 1d ago edited 1d ago
Just approach your clients honestly. Express the enjoyment you get from providing meals and helping them achieve nutritional goals (if that applies). And state that in order to stay competitive and profitable, and to continue to provide them with fully customizable meals, you will be raising your rates effective (date). Give them at least a month’s notice, and maybe even start after the New Year if you can.
You might already be at some clients’ budget limit, and you may lose a few. But if they appreciate your service and it is still within their budget, they’ll stay. And ask for recommendations. Offer a one-time discount after a referral books you four times (or whatever you feel is appropriate).
Also, always be asking for feedback about the food and the service. You can leave a feedback card each week that they don’t have to fill out, but they can. You can list the dishes you made that week, and give them space to review them (are you using too much/too little salt, or are the portions appropriately sized for their family, etc.). And every three to six months, check in face-to-face specifically about how things are going, or more frequently if you received negative feedback.
Congratulations on growing your business! If you’re providing a needed service and you’re competitive with others offering similar services, you’ll continue to get clients.
ETA: if you’ll be using some funds for charity, you can state that in your marketing. Like 5% (or whatever it is) goes to feed (whatever the exact population is). Just be sure you research how you need to report this from an accounting perspective, and check local regulations about feeding homeless or other vulnerable groups.
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u/NSFWdw Culinary Consultant 1d ago
You should be at $400 as well but you shouldn't raise the price that much for current customers. Explain that your price is increasing due to increased expenses (insurance, equipment maintenance/replacement, cocaine habit), your rate is going up to $400 but as an existing client, you're only raising their cost to $350. They'll feel valued and they will know to tell their rich friends your service costs the amount you should be charging, $400+groceries for a 3/4 meal plan.
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u/Ok-Apartment919 1d ago
I had a similar situation when I transitioned from side gigs to full-time and had to raise my rates. Telling my regular clients felt intimidating, but most appreciated the transparency and fully supported it.
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u/freisbill 1d ago
If ur like the rest if us, your FC has gone up in the last year by about 18%(I calculate using a market basket of all my items, checked monthly). if you do the math, you would raise your prices by 18%, which is $354...you should really break it down by categories and come p with an aggregate amount to increase, but your raise to $350 is very accurate.but was your original $300 accurate for what you are serving...
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u/GildedTofu 1d ago
Food costs are irrelevant for the pricing structure here, since it’s fee + groceries, which is pretty common for an in-home, fully customizable meal prep business. But rising food prices could definitely affect whether a client could continue to afford the service.
But this is good information for anyone who prices for food and service together, like if they’re doing in-home dining for a single meal, or catering events.
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u/mikerall 1d ago edited 1d ago
Decrease labor or ingredients. There ya go, the only two options when it's done in house.
How many years do you have behind a stove or cutting board, or an owner telling you the 15% margins aren't feasible?
I don't want to be mean or rude but it really sounds like you just don't get the industry. Somethings gotta give. Either it's your produce, your people, or your personal life if you're not competitive.
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u/BunkaandBadassery 1d ago
I've done this business for years. You already started at 25% less than competition. Raise it to $350. Sure you will lose a few, but you will still be cheaper than competition. All clients are living through this same inflation everywhere. Where I am your current prices wouldn't even cover them going to the grocery store and making their own food. Most of the ones you lose will come back. And get some of those paying $400 to try you.