how do calculate price per person?

I am clueless. But when people talk about price per person - what is the formula? Does it include tax and gratuity as well? If I am doing it in a loft do I include my space rental fee? Just curious.

Re: how do calculate price per person?

usually when people quote you the cost per person they dont include tax and gratuity in the price.

Re: how do calculate price per person?

at catering halls, when you go to visit they tell you a price per person and what that includes. you can add or take off of it usually if you want something different. so in that case, people just take the price per person the hall gives them and add in the tax and gratuity.
but... if you're talking about renting a loft and hiring in a caterer, i would count the site rental fee separately...

Re: how do calculate price per person?

Best way to figure it out:

Rental Fee +
Total Base Per Person (ie; loft says $90 pp x 100 guests = 9000) +
Extras getting +
Tax +
Gratuity = TOTAL
divided by person: Price Per Person

Re: how do calculate price per person?

Price Per Head is what the hall is offering in your package per person. You can usually add, remove or substitue to a degree. However, it doe not include tax and gratuity.

To figure Price Per Head with tax and gratuity take the final number they give you lets just say $13,000 and divide ( / ) it by your guarantee lets say 100 people = $130 per person.

Usually when you go to a hall they give you the price per head first and you bargain with them before you get to the final count with tax and gratuity. Hope this all makes sense, it can get confusing.

Re: how do calculate price per person?

Thanks for the help!

Re: how do calculate price per person?

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Posted by ChristineAEid

Best way to figure it out:

Rental Fee +
Total Base Per Person (ie; loft says $90 pp x 100 guests = 9000) +
Extras getting +
Tax +
Gratuity = TOTAL
divided by person: Price Per Person

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In my case, 'gratuity' is disguised as a 'service fee' so it is taxed, it adds up like this:

Base Price ($100 pp)
+ Service Fee (18%)
+ Tax (8.75%)

Your 'true' PP price is $128.32

Re: how do calculate price per person?

So they charge you tax on the service!?
I always thought you should calculate tax and service separately

100 * 8.75%
100 * 18%
and add them for your final.

That is nuts if we are paying 8.75% on the 18% haha

Re: how do calculate price per person?

Glad I found this thread. Something to watch out for ladies....

I had places calculate it differently, and it makes a difference in pricing.

Good way to calculate:
base price + NYS tax (8.625%) + gratuity (18-20%) = total per head count

Bad way to calculate:
(base price + gratuity) * NYS tax

example - lets say your price was $100/person --

In the good example:
$100 + $8.63 + $20 (if the gratuity is 20%) = $128.63

In the bad example:
$100 + $8.63 = $108.63
$108.63 x 20% = $21.72
$108.63 + $21.72 = $130.35

In the bad example they are taxing the gratuity...which I don't know if it's legal...? But I know one reputable place that we looked at does it this way. It may seem like it's not a big difference ($1.72), but if you have 200 guests it will add up (nearly $350).

Just something to look out for! Good luck!

Re: how do calculate price per person?

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Posted by beachbum05

Glad I found this thread. Something to watch out for ladies....

I had places calculate it differently, and it makes a difference in pricing.

Good way to calculate:
base price + NYS tax (8.625%) + gratuity (18-20%) = total per head count

Bad way to calculate:
(base price + gratuity) * NYS tax

example - lets say your price was $100/person --

In the good example:
$100 + $8.63 + $20 (if the gratuity is 20%) = $128.63

In the bad example:
$100 + $8.63 = $108.63
$108.63 x 20% = $21.72
$108.63 + $21.72 = $130.35

In the bad example they are taxing the gratuity...which I don't know if it's legal...? But I know one reputable place that we looked at does it this way. It may seem like it's not a big difference ($1.72), but if you have 200 guests it will add up (nearly $350).

Just something to look out for! Good luck!

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They can't tax on a 'gratuity' but they CAN tax you if it says 'service charge' or something along those lines. Which IMO absolutly S U C K S