They want a percentage???

[Captainjack]

I have been asked to vend pulled pork and Sliced beef at an event at our city park. Last year there were alot of people there and no food to speak of. (I was at a KCBS comp, and we won) They are all excited to have my trailer there with good food. Now the other shoe drops that they want 25% of my profits.
I can jack my price up a buck and make out pretty well and it is a charitable organization that give back a lot to our little city and area. My question, has anybody vended in a similar situation and does this sound fair. I will be the only food vendor there other than the Rotary selling brats and hot dogs.

I am tending to probably do this as I think it will benefit both of us. I just interested to see what the rest of the world thinks.

Thanks,
Jack

[ThomEmery]

splits range from 80/20 to 60/40 depending on the traffic
25% take they should supply a nice crowd

[RICK Allen]

I would only give a percentage after , I reached a point when all my costs and wages were covered. I understand from your post they want 25% of the net. Let me give you an example, I was asked to do a naked Bunji jump, estimated crowd of over 10,000, they made sure I as the only caterer that this was huge, and wouldn't be asked back as the only caterer if I ran out of food. My cost to do it was 3000 in product, we grossed 300, they took their 30 dollars and I ate, all of the waste., therefor I refuse to give any percentage unless they want to take some of the risk, I.E. pay me if it is a bust.

[landarc]

25% of fully encumbered profits, that is not bad. If the crowd is large and you are mostly one of two, then I would do it.

[Bigmista]

I wish my markets took net instead of gross.

[JimmyDAL]

No more than 10% of net, to easy to sell a pipe dream without the cash outlay. JMO

[Cook]

A percentage of net profit? Sure.

My question is this...how exactly are they supposed to know if you actually made a profit at their event? That is alot of trust being extended on their part.

[Captainjack]

Thanks for all the replies. I'm not worried about this deal being a flop as it has been an annual event for 50+ years. The Rotary club is promoting the event and I know most everyone in the club. I have been assured that whatever I say I sell will satisfy them. I have no plans to cheat them and I hope that we will both do well. There is a large car show, volleyball tourny, softball tourny, horseshoe tourny, tractor pull and a bunch of crafters. There isn't much else in the area to do so this is a big event. I will post what my results are. It's August 20th so I have some time to prepare.

Thanks again,
Jack

[Jacked UP BBQ]

You can make money at 25% make sure you price your stuff correctly. We do an event up here at 20% and I just up everything $1 and it helps a lot. You will have to do some volume to make a good nut. But its possible.

[chad]

You should be able to write off this 25% as a charitable deduction as the $$ is going to the Rotary Club. At least that can make 25% a bit more palatable.

[Smokin Turkey]

At our comp we don't want anything of your sales. We charge you a set fee to come in and we only need to know your books because we are using federal land, we need to pay the taxes on all "profits".

Now not sure of how the place is arriving at 25% if it's total sales or profits.

Profits = sales - expenses. (food cost, fuel, travel expenses, labor and employees....)

[HBMTN]

I'm in at 10% , if they want better than that then I would have to state to them that A) you get nothing until we gross X B) 10% until we sell XX and when we hit XXX we will pay 20%

[BigButzBBQ]

It's a tough one. We recently decided not to have a booth at an event because of being charged 20% after a $500.00 profit but, that was after paying them $300 for the booth to begin with and then there were a bunch of rules that we weren't comfortable with.
If the booth were free and you could up your prices accordingly to make up for the 20%. It could definitely be worth it.

[chad]

A lot of events are taking the vendor for a ride. They feel like they are the only game in town and over-state crowds, charge exorbitant fees, limit your prices and what you can sell, and THEN want 10-25% on top!! Might as well open a kiosk in your local mall for those kind of rates!!

[WaywardSon]

Originally Posted by chad

A lot of events are taking the vendor for a ride. They feel like they are the only game in town and over-state crowds, charge exorbitant fees, limit your prices and what you can sell, and THEN want 10-25% on top!! Might as well open a kiosk in your local mall for those kind of rates!!

Well, it's Sunday morning...can I get an amen:-) I'm not going to just come out and say that promoters lie, but they are certainly going to give you a best case scenario. I don't think I have ever had an event live up to what the promoter said would happen. That doesn't mean you can't make money, but you need to take a hard look at what you are being charged to set up and figure what you are going to have to gross in order for YOU to make a profit. If it is not an established event & I don't have an exclusive on the product I am selling, I'll pass if they want a percentage.