How would you like to set up here every day? Get that perfect spot…
I just received a great question from HDCN reader Arnold Sims :
Hello Steve,
I am sending you an email asking for a little advice. I found a location to setup at with my cart but it’s not working out. I have been at other places for similar amounts of time and had absolutely no problem making money. I’m very confident it’s because of the demographics.
I’m currently following back up on my research for the hot dog industry and am re-evaluating places for a location. I was wondering if you could give some advice and pointers on finding a location.
Thx a lot.
Arnold
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Hey Arnold,
Cold calling on business as a way to get a location has a dismal success rate because people do business with those they know, like, and trust. If they don’t even know you, you’re usually dead in the water before you walk in the door.
Here’s how to put the odds in your favor…
Start networking with local business owners. Here is a very informal, easy, low pressure method that you can use.
Just drop in and shop around, talk to the owner, buy something if you need it, but DON’T mention your hot dog biz.
Do this a few times to build up familiarity, then one day mention your hot dog business and how well you are doing with it. You need to appear successful, not like you need help.
Then casually mention how you think that putting one of your carts out front could really help bring new customers into their business.
By this time the business owner knows, likes, and trusts you. You are not a stranger who wants something – you are a friend with whom they can partner for mutual benefit.
BIG difference, from a psychological standpoint.
Also join the local Chamber of Commerce, Lion’s Club, etc. But don’t just join, be active. Go to the meetings, help out, volunteer.
You won’t get any benefit unless you actually participate! Remember – everything is based on the “know – like – trust” model.
Think of this method as a long term investment. It takes some time but it really pays off.
Even after you get the location of your dreams, keep on visiting local businesses and building relationships. You never know when you’ll need tap into one of your investments.
- Steve
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{ 40 comments… read them below or add one }
excelent advice it is like doing business with a bank drive thru is convient but you have no face time with the manager if you go in once or twice a week and always say hello to the manager you’ve established a rapport and he or she is a lot more likely to want to help you .
Steve is correct. I have found that this approach works well. Unfortunately, I live in a city that has numerous restrictions as to where a “push cart” may be located. Our area requires that a hot dog cart must be located under a structured awning, adjacent to an existing building or business, and not impede foot or vehicle traffic! Talk about limiting options! Anyway, building a good relationship within the business community is a great way to get your foot in the door. Also, do not bring up the issue of rent. Let them do it. You might find that they will not ask for any rent! Remember rent for any given location should not exceed two days gross sales for that location. Suggest a trial period to see how it goes before you settle on a rent amount.
Seeing Im going to start this season, this was a very helpful tip
Thanks
Hi Steve,
I have a very very different viewpoint on finding locations.
It’s based on my 15 yrs experience with my previous business. I had 34 independant Dealers all of whom I trained on locations. They were successful straight accross the board.
I have a whole “Hat” on the subject with pictures etc of what is good and what is not a good loaction.
1. You need a professional 3 ring binder, with a 8″x 10″ picture of your Hot Dog Cart. On another page put your local Health Department License.
IF you have Liability Insurance put a copy of in the binder also. One picture is worth a 1000 words when introducing your biz to a property owner.
2. You always go location hunting first thing in the morning as the decision maker ( Owner or Manager) will be there. What you say and how you say it is key.
3. What you are looking for has to meet several requirements. Visibility, Accessability, Parking.
You use a city map when you go location hunting. There’s a specific reason to do so.
Is the location aceessable from 4 directions and at a stoplight?
There is a lot more to this but it is very easy to do…IF you know how to do it. Did you knw you can get the traffic flow of any corner in the US from your State Government. Usually it suffices to just sit in the car and observe for yourself.
As an aside, go to your computer and type in (Your State such as Florida) “Florida Fairs and Festivals” or “Florida Art and Craft Shows”
or “Dallas Fairs and Festivals” or “Knucklehead Delaware Art and Craft Shows.”
This will give you a ton of short or long shows to sell at if that is of interest.
Anyway, there is a lot more to this but once again it’s quite simple.
This message is just a short tidbit on locations and perhaps would be of value to your readers. Hope this helps.
Ken
I must be lucky, I got my first spot on a cold call. Then all the rest have come from my customers. I could set up 7 days a week but I just don’t have time. I also feel that its a two way street, one you need a customer base but you don’t want to over book the area. Being in a small town, people seem more excited when I do set up. As long as you are happy with what you are doing, it is all good. Oh, Steve, I did have to raise my prices this year but so far business has not decreased. Only had a couple looks from regular customers that knew my prices from last year, but when I explain why they seem to understand. Note about locations: My first location I had made only $35.00 in sales for 10am to 2pm setup time, the last time I set up at that location I did $150.00 in sales in 2 hours. It sometimes takes time to build a location.
Duggs Doggs
Good!! Good!!
As usual, great advice!
Networking is a great idea – However, you need to be able to demonstrate value to the business location. What are you bringing to the party? Will you increase their customer base ? Provide a service that is needed? Add value to their business? Cash for rent is not always the motivator for a business. Show real value and you can seal the deal!
Very Good Advice! It is good to be involved with your community, You can also go to your local library and get the tapestry reports for your area!
Thanks Arnold for the question, its something that I am also kicking around at this time! I thought I had a good idea to start off my cart, but the more I think about it, it doesn’t really fit the guide lines Steve has set out, Thanks Steve for the idea’s on a better way to go about a solution! Great idea’s as usual!
Katherine
Kat’s Dog’s
we are going through something similar and it has been tough on us mentally and finacially – we are slowly working through it – as Steve said, build relationships and stay persistant! Thanks Steve – your timing is always right on for us!
Sue and Renee
Good advice Steve people tend to welcome friends and folks they know and reject competition or some one who might take buisness away
nadine
Mother Road like in Route 66 Dogs
This information is going to help me out when I try to find a location. Thank you for discussing this topic!
Print up some one time use coupons offering a free bags of chips with a hot dog and drink purchase. Include your business name, phone number and business location and don’t forget your logo. Print in color about business card size. Hand these out to all the businesses in a two block radius. Make sure to give extras so that they can be shared. You will be seeing them back real soon.
I also use punch cards that double as a business card. After nine purchases I give them the 10th one free. Not only do I get lots of repeat business, my customer always has my business card on them. This worked great.
Cecil, I like the bank drive through analogy.
Good tips Lucky Dawg!
Dave and Kat – I wish you both a good start up!
Nadine – I’m on Rt 66 too. What state are you in?
Dealers – Hang in there. You two got such great press last year!
Duggs Doggs – glad to hear you are charging what your product is worth. Good job!
Good library tip Rick – thanks!
You’re right Mark – market your biz as an asset.
Thanks Yanks!
Much awesomeness in your comment Ken – thanks!
Go get ‘em Debbie!
Brandon – if street vending regs are too too tough, you can still do very well with private parties, catering, and festivals/fairs.
A while back in August i remember telling everyone on this site how i lost my first location and how depressing it was,and i thought what the hell am i going to do now.Steve said its a part of business,and that i would come back stronger then ever you were right again tough guy.Just let the people know you,and serve a fresh product,be consistent with your times and days and always network your business,so people get to know you so you will have a new spot in case you lose the first one,it takes time ,but it really does work,and i love every minute of it!!!!!
Great thoughts on the first question, answered some I had thought about. I was lucky when I started last year the health dept. person had heard that the local park dist. was looking for something like I had. To make a long story short I got into working with the park dist. at non supplied food evening concerts(I can only serve coke produsts since the park dist. contract is with them!!) It works for me I get there about 5.30p and start selling by 6.15p and am done by 8/8.30p with an extra 250+ in my pocket!!! When I raise my red umbrella the people remind me of lemmings!! I also with out asking gave some money to the park dist. sports programs. I only have to drive a total of 20 miles and since the concerts are on a weeknite it does not throw off my work the next day. I will be there this year also.
I need to know if anyone out there has tried or is using a debt card reader for sales. I feel that it would be a topic to discuss sometime. I have had a number of buyers ask if I take cards(even checks!!)Let me know thanks, Jerry
Great info for my stand which i am going to start up in about a month. will let you u know a name or maybe someone can help me when i am ready
All great advice!
@Duggs Dawgs,
I’m in a small town too and got lucky on my first idea. My pitch was to the town as NOTHING happens in this town without town hall permission. I got the new, refurbished beach on the first year. It took a while to start making good money, but my customer base built fast. I’m visible from 4 directions at a 4 way stop, on a lake, in the parking lot at the beach, and one road is the main way to points north.
Consider beaches, folks! My pitch was “Hot dogs and beaches go together like peaches and cream.” I got a unanimous vote of approval.
Jerry, Check out Square for credit card processing. All you need is an iphone or a Android smart phone. Just Google for Square credit card processing.
Regards, Bill
Steve is right about joining the various Chambers and paticipating with them. A familier face has the advantage. Cold calls! If you do cold calls, have your menu and pictures handy and be willing to leave your pictures with the location. As Ken says “a picture is worth a 1000 words.” I found that cold calls to car dealerships work well if you tell them you would like to ‘partner’ with them in any of their promotions. Also, think back to any businesses that used balloons, tents, etc. when they have sales. I found that they tend to be eager for a hot dog cart. If they have doubts due to local city hall ordnances; go to the city hall and get the answers. I was able to book a location for all of their monthly promotions this summer because I did that and returned to the location on the same day. Unfortunately, it took me from Feb to Sept of last year to be approved by the county health dept. [nightmare!!!!], so we have started late in the season. And nearly all my bookings start in April/May. I now stand in the snow on Saturdays at Sooper Lube and have booked several events for Feb. And I’m knocking on doors! So much to do. Steve, I know you asked for my story and pictures; I’m working on it. You are a wealth of knowledge and heart felt love for us newbies. Nancy & Neal
Steve,
Oh Man, great advise as usual! Steve, you are on the money with the Know-like-trust model. When I first started, back in the set up, test, and move on stage, no one knew who I was so it took a while to establish my self. I shook a lot of hands and treated everyone as if I knew them for years, I am really good at remembering names, I make it a point to remember your name, as time went by people started to trust me and I was then intoduced to the right people. Steve, you are so right, trust is key. I went from doing 150 a day to 500 a day because I was able to build relationships with key people, oh yea, I also deliver really great food, consistantly! All that I can say is thank you for all that you do. I am currently building 2 more carts, one to add to my business and one to sell, I’ll send you pictures. The next generation of Campfire Grill/EZ Built carts are going to be awesome!
Hi Steve,
I know you know exactly what to do !! Help !! I’m having a problem with encountering property owners face to face. My previous profession was a receptionist and I have no problem composing a letter. Well.. I now realize I need to talk to these people in person, and I need help with the “solicitation” thing.. I’m not a born salesperson (hot dogs sell themselves). I’ve sent out so many “permission request” letters, and most were sent back because they don’t have a physical mail address. I know I have to physically get out there and talk to these people.. do you have some words of encouragement for me ?? I love people.. but I hate sales. I know this business IS sales.. but hot dogs are sooo good that they sell themselves !!! I look forward to your reply.
Kim,
Stop thinking of it as “sales”. Think of it as making a new friend and then later talking to them about your fun and interesting business. Property owners are business people so guess what they LOVE to talk about?… BUSINESS!
Just happen to mention what you do one day and they will be so interested that they’ll start asking you all sorts of questions. The conversation just naturally flows.
Put away that plaid suit because “sales” is dead. Doing business through relationships is where it’s at.
-Steve
How much is the average gross profit in 6 hours for 5 days a week, Monday through Friday, can someone help me to quit my job and devote myself to this one hundred percent
Jeff,
There is no such thing as “avereage” but a decent location can do $100 an hour realistically. Our net is usually 70 percent of that. You can do the math.
I never counsel someone to quit their job before their hot dog gig is producing solidly. That’s too much pressure and pressure makes you a bad decision maker.
If you are already out of work then go for it, otherwise start it part time. You can even hire someone to work it full time until you are ready to take it over. But by then you could just keep them on and start a second location yourself.
-Steve
I am really thinking about doing a hot dog stand; I’m just trying to get enough money built up. I would like to apply for a loan, but I need help with a business plan. Could someone help me?
Killah,
If you’ve never done this before you can find answers at http://www.HotDogBiz101.com
Thank you for all your comments and incredible information, I keep every email from Steve, and read/study when I have time.