Each year another convention planner discovers the anatomy of a meal price. She selects a reasonably priced meal from the “approved” catering list. (The approved catering list means that the convention center or hotel will let that group serve food at your convention site.) The convention planner feels good that even though prices have risen since the last event and this location is noted for higher prices, she has found a great lunch. “The chicken ala hotel salad is only $25 and includes coffee, tea, rolls, butter and a light dessert,” she smiles. She reports to her committee and they, too, are pleased.
Then the convention registration form must be created. She is asked about tax and gratuity and other fees. She assumes, “Tips are like gratuity. People know that.” She adds the mandatory 22% gratuity/service fee, thinking that she usually tips 20% or less. She frowns when she realizes that the meal price will now be $30.50. She asks and is informed that the state and city taxes are figured on the entire price, including the gratuity/service fee. She multiplies the $30.50 times the 9.26% local taxes. Her total is now $33.32.
Her committee members murmur, “Looks different when you add it all in at once. At the restaurant we just think about the menu price, not after adding dessert, coffee, tax and tips.”
They are now faced with what to charge members for the meal. They are being very frugal and are worried that 32 cents times 2,000 people ($ 640) would mean no decorations for the event if they try to absorb the odd cents. She asks the chapter working on the decorations. They say that creating anything for 200 tables add up, even if they donate all the work and some of the supplies. They cannot "absorb" another $640. Her committee notes that registration costs are usually rounded with no cents for ease of tracking registrations and having a little extra for favors or decorations or assorted other function charges. She sighs.
Her $25 lunch is reasonable, but it will look much different when it appears on the registration form as $34. She asks the editor if she can list the salad, meal, dessert, gratuity/service fee and tax separately. When the laughter ceases and the editor explains that the registration form has several meals listed and must fit on one page, she understands. Now she hopes members do the same.
Her committee members murmur, “Looks different when you add it all in at once. At the restaurant we just think about the menu price, not after adding dessert, coffee, tax and tips.”
They are now faced with what to charge members for the meal. They are being very frugal and are worried that 32 cents times 2,000 people ($ 640) would mean no decorations for the event if they try to absorb the odd cents. She asks the chapter working on the decorations. They say that creating anything for 200 tables add up, even if they donate all the work and some of the supplies. They cannot "absorb" another $640. Her committee notes that registration costs are usually rounded with no cents for ease of tracking registrations and having a little extra for favors or decorations or assorted other function charges. She sighs.
Her $25 lunch is reasonable, but it will look much different when it appears on the registration form as $34. She asks the editor if she can list the salad, meal, dessert, gratuity/service fee and tax separately. When the laughter ceases and the editor explains that the registration form has several meals listed and must fit on one page, she understands. Now she hopes members do the same.
FYI: As I signed my credit card receipt for dinner recently, I realized my quick dinner had doubled...soup, appetizer, beverage and tax had taken my $11.95 entre to $22.14 and I still had to add a nice tip!
