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Catering, Vending and Cooking For The Masses. this forum is OnTopic. A resource to help with catering, vending and just cooking for large parties. Topics to include Getting Started, Ethics, Marketing, Catering resources, Formulas and recipes for cooking for large groups. |
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10-19-2009, 01:49 PM | #1 |
Full Fledged Farker
Join Date: 07-09-08
Location: Watsonville, CA
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40% vending fee - would you do it?
Have any of you BBQ folks out there who do vending worked a venue where they ask for 40% of your take at the cash register as your vending fee? We are considering a new venue, but really need to crunch some numbers to see how profitable it might be.
We have vended at an event that took 30% and I thought that was pretty steep, but we did make money. The new venue is one that will have some very big crowds. Lots to consider. Any ideas or suggestions?
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Rollin' Smoke BBQ - West |
10-19-2009, 03:59 PM | #2 |
somebody shut me the fark up.
Join Date: 10-09-06
Location: Blue Springs, MO
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That is steep. Any other costs involved like permits? Consider competition. Ask them for numbers for comparable vendors for the last three years. Consider what % you need to make for it to be worthwhile. If you didn't cook this event, would you be working at all during that time?
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Pork Pullin Plowboys (and Smoke on Wheels) Save a hog, ride a plowboy! www.plowboysbbq.com Todd Johns (me); Blue Springs, MO Randy Hinck (PigBoy); Concordia, MO Andy Groneman (Hodedo); KC, KS (Cameo Appearances) FEC-500SS; FEC-100 (Right handed); FEC-100 (Left handed); Country Smoker Tailgater; Big Green Egg (2-large, small, mini); Cookshack Pellet Fired Charbroiler |
10-19-2009, 04:09 PM | #3 | |
is One Chatty Farker
Join Date: 01-29-07
Location: Fountain Hills, AZ
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Just me, the Wife, and the Dogs |
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10-19-2009, 04:48 PM | #4 |
somebody shut me the fark up.
Join Date: 05-03-07
Location: New Baltimore, Mi.
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As said earlier Marsha, absolutely not. 40 % before expenses would be suicide IMO.
Given an overhead of 25% (low), out of $1000 sales you have $250 in overhead, they get $400 and that leaves you a profit of $350. Not good business in my book. Good luck on your decision and let us know what you decide. What kind of event demands 40% of your cash sales?
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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 |
10-19-2009, 04:58 PM | #5 |
Full Fledged Farker
Join Date: 02-10-06
Location: MICHIGAN
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How are they gonna know what your cash sales are for the day?
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10-19-2009, 05:07 PM | #6 |
somebody shut me the fark up.
Join Date: 06-26-09
Location: sAn leAnDRo, CA
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Back when I was shooting video for horse events, this started coming in vogue, and a few were asking for that much money. It doesn't make sense for a business to do this. I know they claim that they are giving you a market, but, it is still very difficult unless the market has no other choices. I would not do it, even if I had an exclusive, unless there was some safeguards in the agreements.
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10-19-2009, 05:15 PM | #7 |
Full Fledged Farker
Join Date: 07-09-08
Location: Watsonville, CA
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Thanks for the great replies. The venue is Infineon Raceway, north of San Francisco. They hold a NASCAR race once a year, motorcycle, NHRA, and Indy car races, etc. We were pleased that they approached us to vend there. But, now that I think about it, why does the venue need to go out looking for more food vendors? The best venues we work often have a waiting list of people wanting to vend there because they have a good reputation as being a well organized, profitable event. I have a list of questions for them when I talk to them after we read the information packet they are sending, and that list is getting longer all the time.
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Rollin' Smoke BBQ - West |
10-19-2009, 05:16 PM | #8 |
Watching over us.
Join Date: 12-27-05
Location: Mid Michigan
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When I did catering on a very small scale for a couple years I wound never consider those type fees.
I did private partys, graduations ect., no vending. That almost sounds like the mobsters demaning a very high price for your protection or even allow you to vend. I hope im not out of line here with my comments but thats borderline insanity. |
10-19-2009, 05:19 PM | #9 |
Full Fledged Farker
Join Date: 07-09-08
Location: Watsonville, CA
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Some places send a person out each day to watch you Z out your cash register and everyone initials the paper roll at that point then you turn it all in at the end of the day.
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Rollin' Smoke BBQ - West |
10-19-2009, 05:23 PM | #10 |
somebody shut me the fark up.
Join Date: 05-03-06
Location: Ventura, CA
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+1 on Bull's comments. This sounds like mobster stuff!
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10-19-2009, 05:26 PM | #11 |
is One Chatty Farker
Join Date: 01-29-07
Location: Fountain Hills, AZ
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Larger vending venues require you have a cash register, and note the serial number(s) on your application. You then provide a tape or reading as backup for the sales number.
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Just me, the Wife, and the Dogs |
10-19-2009, 05:39 PM | #12 | |||
Full Fledged Farker
Join Date: 07-09-08
Location: Watsonville, CA
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Rollin' Smoke BBQ - West Last edited by Marsha; 10-19-2009 at 05:40 PM.. Reason: Can't type for beans |
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10-20-2009, 12:47 AM | #13 |
is one Smokin' Farker
Join Date: 10-19-07
Location: Oroville, CA
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Also remember that you will pay California State Board of Equalization 8.25 % of sales. This means that if you raise your prices to cover the 40% being charged to you----you will also be paying the state 8.25 % .
Events like this collect cash register tapes every hour and question any No Sale ring ups. They also put a sign on your vending booth to tell customers where to report you if they do not get a receipt from you. You will have a captive audience that can afford an eleven dollar tri tip sandwich. |
10-20-2009, 04:26 AM | #14 |
Quintessential Chatty Farker
Join Date: 12-15-07
Location: England
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Marsha would be very interested in seeing a list of questions that you are asking them. There have been a few events that have asked us for 20% and I would love to have some back -up via important questions to ask.
BTW at 40% I would walk away if vending over there. Here things haven't gotten advanced enough to need a cash register or receipts.
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10-20-2009, 07:15 AM | #15 | |
Babbling Farker
Join Date: 07-17-06
Location: Flushing Michigan
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