Canteen run by Contractor on perhead basis for 400 employees.He is requesting us for a raise in his per head Rate provided by Mangement.
How do we refix the rates?
Any new strategies in fixing the revised rates?
How do we convince after refixation?
If any such guidelines thro PPTs,Presentations are invited.
Pl.guide.
V.RAJARAM

From India, Madras
Dear Rajaram,
As per your view, about 400 employees means definitely it will be benefit
to the canteen contractor. If definitely the contractor wants to raise the
price you have to go for agreement basis upto 6 months or 1 year?
During price fluctuations enormously, you have raise little bit that also
you have to mentioned in your agreement.
Hope you can get some idea...
With Regards,
Shriram,
Chennai

From India, Madras
Dear Rajaram,
As per your view, about 400 employees means definitely it will be benefit
to the canteen contractor. If definitely the contractor wants to raise the
price you have to go for agreement basis upto 6 months or 1 year?
During price fluctuations enormously, you have raise little bit that also
you have to mentioned in your agreement.
Hope you can get some idea...
With Regards,
Shriram,
Chennai

From India, Madras
Rates of the Meals are based on the factors like Ingredient Prices, Labour Charges, Administrative charges and Profit Margins. Normally future increase in the prices of the ingredients are considered while fixing up the rates. but many a times its so happens that the increase in the prises are very high and the contractor is not able to to absorb the same. This happens in the basically two heads a) Labour Charges. Due to revision in the Minimum Wages the contractor has to bear extra burden in regard to PF and ESI contributions. Normally all the companies have the system to off set this rise by including the potential rise in the Min Wages in the Rates. b) Increase in the rates of the cooking oil. The rates of the cooking oil is highly fluctuating. The company normally revise the rates in case the price of oil crosses some values. we must understand the fact that contractor do business to earn profit and if he is not able to generate the profit he will try to manipulate either in terms of payment to its workers or some adjustments in the quality of foods. it is my suggestion that you should always fix up the rates considering the expected rise in the Minimum Wages and the Oil prices.
From India, Delhi
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