|
Catering, Food Handling and Awareness *OnTopic* Forum to educate us on safe food handling. Not specifically for Catering or competition but overall health and keeping our families safe too. |
|
Thread Tools |
11-26-2010, 07:39 PM | #1 |
is Blowin Smoke!
Join Date: 10-16-08
Location: Virginia
|
Setting your vending prices
Just curious when setting your road side vending prices do you go by cost x3 or x4, also when figuring this up to get your pricing what all do you include in cost? In other words to you figure say bun, sauce, pork, rub times 3 or 4. Or do you add things like foil, charcoal, styro containers, utensil packs for meals, etc.
__________________
Ole Hickory EL-EW, FEC 120, Lang 84, Custom Off Set |
|
11-26-2010, 08:12 PM | #2 |
somebody shut me the fark up.
Join Date: 05-03-07
Location: New Baltimore, Mi.
|
3X food cost is a good place to start. 4X and you won't have many customers.
The more you can include in your costing, the more accurate your food cost will be. Once you get established, you can change your pricing to fall in line with what your customers will pay, thus dropping your food cost %.
__________________
Owner of Bubba's BBQ & Catering L.L.C. Beer Snob I cook the #bestbrisketnorthoftexas. Get over it. #detroitporkmafia BBQ Person of the Year 2013 |
|
11-26-2010, 08:31 PM | #3 |
is Blowin Smoke!
Join Date: 10-16-08
Location: Virginia
|
Thanks Bubba, that is what I am trying to figure out. I sold 5oz sandwiches for $5 and add 2 handmade sides to make a dinner for $7 this year. I think I am good on the sandwich price but feel like I should move the dinner price to about $8.50. Especially after taking my 7 and 9 year old kids to get a meal at Wendy's and paid $29 for me and 2 little kids for a crappy burger.
__________________
Ole Hickory EL-EW, FEC 120, Lang 84, Custom Off Set |
|
11-27-2010, 09:15 AM | #4 |
Full Fledged Farker
Join Date: 11-01-09
Location: West Des Moines, IA
|
That's what we charged for a 4oz sandwich and two sides last year. Halfway through the season we changed the menu so you could select either two sides or a side and a 12oz can of soda for the $7.00. Although 3x is an excellent starting place, it pays to do some recon on your fellow vendors to see what they are offering and charging. I like to be right in the middle - not the cheapest and not the most expensive.
__________________
Brian Sweeney - CBJ #3691 - '77 Step Van Mobile Kitchen, Horizon Marshall, WSM with Pro Q Stacker, Weber Kettle & Smokey Joe GOLD. "Any sufficiently advanced technology is indistinguishable from magic" - Clarke's Third Law |
|
11-27-2010, 11:04 AM | #5 |
Full Fledged Farker
Join Date: 03-12-09
Location: Genesee Valley, NY
|
Question for the author of the thread and those who have commented/lurkers:
- Your question about vending prices and the manner in which it is phrased leads me to believe that you are basically all ready to vend roadside and have done so in the past. I am in the process of getting licensed to vend and cater in the coming year which, for me anyway, involves putting together a business plan. Partly for my own use to get organized but also to present to the bank when I apply for my business loan. My question is did you also apply for a business loan to start your vending business? If so, how did you receive a loan without accurately forecasting food costs and profits in a detailed manner within a business plan? If you did not apply for a loan how do you fund your operation? Now, I live in New York so I'm sure rules are less stringent in states like VA; however, I see a lot of guys on here lately asking about pricing for the catering/vending/whatever business that they are launching and making it sound like the only thing left to figure out are those prices. From the context of the process I am going through either I am doing way too much work, laws and regs are far less stringent and loans much easier to get outside of NY, or there are a lot of guys on here doing it under the table or in for a rude awakening with the HD, banks, their own savings, etc. What am I missing?
__________________
HandsomeSwede fettsvinbbq.com |
|
11-27-2010, 03:48 PM | #6 | |
Quintessential Chatty Farker
Join Date: 12-15-07
Location: England
|
Quote:
I started my business off my own back. For us the key was not to drop in at a veny with the biggest baddest mulit dollar gear but to get the ball rollig with what we could build. The pots and pans were loaned from a pub landlords kitchen, cheap gazebo, and fold up tables. My smoker was built from a water bowser found on ebay and still is our main cooker today. The most important thing was to get insurance, register as a business and get the health department on board. I took a class for my food service license that cost about 60.00 all in. None of this helps with putting together a business plan but it's how we started and are doing well.
__________________
www.drsweetsmoke.com Slappin that bass like some delerious funky preist!!! UDS, Half Pint (Mini UDS), Weber, ProQ 20, Kegrilla *250 gallon cooker- 'The Meat Beast!!'* British BBQ Championships Grand Champion 2008 ~~~~ British BBQ Society - Southern Championship Grand Champions 2009
|
|
|
Thanks from:---> |
11-27-2010, 05:14 PM | #7 |
is Blowin Smoke!
Join Date: 10-16-08
Location: Virginia
|
Swede, I did not put a business plan together for a bank. I was able to fund my start up without having to go to a bank and borrow money. This is the end one my 1st season in business and I put most of what I made back into the business. It is hard to forecast anything and I am only just getting a hand on things so I am not sure what to tell you about a bank. I am sure some will say you can start up for $1000 while others will say $100,000 I can only tell you what I spent and if you count every detail I probably spent around $30-40K oner 2 years. Hope this helps.
__________________
Ole Hickory EL-EW, FEC 120, Lang 84, Custom Off Set |
|
Thanks from:---> |
11-27-2010, 09:06 PM | #8 |
Full Fledged Farker
Join Date: 11-01-09
Location: West Des Moines, IA
|
Same here. I've totally funded this internally, no help from the bank. Started small and have acquired more equipment as we go along. If I happen to land a big gig, it help funds the equipment needed. This is still a part time thing for me and it's still more fun than not. I get along fine with the HD.
__________________
Brian Sweeney - CBJ #3691 - '77 Step Van Mobile Kitchen, Horizon Marshall, WSM with Pro Q Stacker, Weber Kettle & Smokey Joe GOLD. "Any sufficiently advanced technology is indistinguishable from magic" - Clarke's Third Law |
|
11-28-2010, 06:54 AM | #9 |
Quintessential Chatty Farker
Join Date: 12-15-07
Location: England
|
Our initial investment to get on the road and cooking was under 500.00 including the purchase and build of the cooker. The first gig I ever did was with a ProQ XL, Weber 22" , ice chest and two fold up tables. No gazebo or anything. Took home 300.00 fro that gig and turned it back into the business.
__________________
www.drsweetsmoke.com Slappin that bass like some delerious funky preist!!! UDS, Half Pint (Mini UDS), Weber, ProQ 20, Kegrilla *250 gallon cooker- 'The Meat Beast!!'* British BBQ Championships Grand Champion 2008 ~~~~ British BBQ Society - Southern Championship Grand Champions 2009
|
|
11-30-2010, 07:07 AM | #10 | |
somebody shut me the fark up.
Join Date: 05-03-07
Location: New Baltimore, Mi.
|
Quote:
If you can't afford to do it out of your pocket, you probably should'nt be trying to go this route. How can you forecast changing meat prices, inclement weather that will kill sales, the plain fact that people may not like your food? Not shooting you down but this is NOT a business you want to start with a chit load of overhead.
__________________
Owner of Bubba's BBQ & Catering L.L.C. Beer Snob I cook the #bestbrisketnorthoftexas. Get over it. #detroitporkmafia BBQ Person of the Year 2013 |
|
|
11-30-2010, 11:13 AM | #11 | |
Full Fledged Farker
Join Date: 03-12-09
Location: Genesee Valley, NY
|
Quote:
Now, your point about the forecast of prices is the most relevant. My thought was to look at the current price of pork shoulders, for example, per pound. Then look at the price of shoulders historically over the past 5-10 years (such info is available online). Take the % change and extrapolate it out as an estimate in rise in pork costs over the next five years. Am I offbase here? Additionally, unlike restaurants, food trucks can be 100% reposessed and resold at or near market value.
__________________
HandsomeSwede fettsvinbbq.com |
|
|
11-30-2010, 12:42 PM | #12 |
Full Fledged Farker
Join Date: 11-01-09
Location: West Des Moines, IA
|
I'm a finance and ops guy in real life and I'm not familiar with how one would compute this profit ratio you speak of. Can you provide some additional details?
__________________
Brian Sweeney - CBJ #3691 - '77 Step Van Mobile Kitchen, Horizon Marshall, WSM with Pro Q Stacker, Weber Kettle & Smokey Joe GOLD. "Any sufficiently advanced technology is indistinguishable from magic" - Clarke's Third Law |
|
11-30-2010, 02:36 PM | #13 | |
Full Fledged Farker
Join Date: 03-12-09
Location: Genesee Valley, NY
|
Quote:
The entire site is great and has industry and government data for any sector of food service. It has been very helpful throughout our entire planning process. Depending on what version of the report you want it costs either $99 or $199.
__________________
HandsomeSwede fettsvinbbq.com |
|
|
11-30-2010, 10:27 PM | #14 | |
Full Fledged Farker
Join Date: 04-25-09
Location: Des Moines, IA
|
Quote:
Knowing these costs and keeping them in check is everything; both to establish your pricing as well as to be able to accurately measure your profits. Even though your greatest recurring costs will be commodities (meats) that fluctuate in price almost daily, you do your best to take that into account so you don't have to constantly adjust your prices. Like most things in life, the devil is in the details. Learn to keep very accurate records from the outset and soon you'll be able to quickly assess how well you're doing and where you can improve. Detailed and organized records are also invaluable at tax time. Good luck, Chris |
|
|
12-01-2010, 10:40 AM | #15 |
Full Fledged Farker
Join Date: 03-12-09
Location: Genesee Valley, NY
|
Great thing about the business plan, even if you are not applying for a loan, is that all the costing and details are considered. Rather than getting a week out from a bid or event and saying "oh shoot, I wonder if I need to quote or pay for that."
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Vending Prices: What do you charge? | Rightstuff | Catering, Vending and Cooking For The Masses. | 20 | 10-27-2008 07:51 PM |
Thread Tools | |
|
|