Do You Have The Courage to Make More Money With Your Hot Dog Cart?
Price isn’t the only way to deliver value in your hot dog cart business. As a matter of fact it’s the very worst way.
It’s normal to be nervous during the start up phase, but it leaves you susceptible to self doubt. The temptation to lower your prices is very strong during this period because it makes you feel more confident.
You think it’s a competitive advantage, something you have control over. In reality this terrible strategy is based purely on your fear of failure.
Man up (you too ladies) and plan to charge a price that will return a decent profit.
Why you should charge more.
Let’s say you have been selling your dogs for $2.50. If you charge an extra fifty cents for your dogs here’s what happens:
If you sell 55 dogs a day, you’ll pocket an extra $5,321.25 per year (based on a 9 month selling season). That’s free money. A 16.5 percent raise which you didn’t have to work any harder to get.
That’s great, but check this out.
If you don’t charge that extra fifty cents, you would need to sell 16.5 percent more hot dogs (about nine) every day to make the same money, right?
Wrong.
You would need to sell 23.6 percent more. Thats TWELVE more hot dogs per day. How can that be?
When you charge that extra fifty cents, your costs have already been covered in your base price so you keep 100 percent of that extra fifty cents.
When you charge the base price, 30 percent of that price is eaten up by your costs. You only keep 70 percent of it. See the leverage you get by charging a premium price? It’s exponential.
Math is cool. Competing on price isn’t. You don’t have enough volume to make up the difference.
Don’t join in the race to bankruptcy just because you’re a little nervous at the moment.
Here are six better ways to deliver value:
1. Serve a kick ass product. Use top quality ingredients, super fresh condiments, ice cold drinks, and name brand chips. Watch those expiration dates – your customers do.
2. Be exclusive. Don’t try to compete with QT, Seven Eleven, and every other one-dollar-nasty-hot-dog-on-a-slimy-roller-grill-thingy operation out there. If all you offer is a green dried out no name dog with ketchup or mustard, you’ll get killed by the gas stations.
Do the regional dogs. Coneys. Mexicans. Slaw dogs. New York red onion sauce. One of your fellow readers Esteban Guzman (Stevie’s Red Hot Weenies) is killing it in Texas with his Chicago Style Dogs.
3. Be creative. The hottest trend in the country right now is “street food”, which usually refers to non traditional or gourmet offerings served from street carts. Jump on this trend by offering gourmet hot dogs. Try unusual toppings like avocado and sour cream, cilantro and tomato, crumbled bacon and chopped dates (try it – it’s good!).
Biker Jim’s Hot Dogs in Denver is becoming famous for his specialty sausages like Alaskan Reindeer Sausage, Elk Jalapeno Cheddar Brats, Southwest Buffalo, and Wild Boar Sausage. He even has a caulking gun loaded with cream cheese.
To see how creativity can get you a ton of attention, just google Biker Jim’s Hot Dogs. He owns the first 40 or so search results!
If your health department won’t allow you do do anything more than basic condiments, at least use a premium bun and “kettle” chips to brand your business as a premium operation. It works.
Better yet, get hooked up with a commissary so you can serve more creative options.
The exception is fairs and festivals where you have thousands of people just looking for a quick meal. There you can get away with a plain Jane product but still don’t sell it cheap.
4. Deliver an experience. Have some music playing (not too loud). Decorate your cart. Have a theme on certain days like “Hawaiian Fridays”. Run a little contest every now and then.
5. Be friendly. Don’t be the grumpy lady who sits in a lawn chair by her cart reading Lavyrle Spencer novels until someone rudely interrupts her to buy a hot dog. Chat up your customers. Most of them spend 50 hours a week in a cube farm under fluorescent lighting with no one to talk to. Be the highlight of their day.
6. Be findable. It’s a new decade. If you don’t have a website or Facebook page, make it a priority. In the old days you had to be in the same place every day so your regulars knew where to find you.
When people can find you online, it sets you free from being tied to one location because you can “post” your location each day. Your customers will get an automated email from you so they will always know where to find you.
It’s not unusual to have customers waiting when you pull up.
There you go. A half dozen ways to rise above the competition without cutting prices.
Have the courage to be the best. It pays.
What do you think about this concept? Any more ideas? Let’s hear you in the comments!
-Steve
Great read Steve,, Keep it up!
Steve, you are so right about pricing. I got a late start with my cart. I did my first event during the third weekend last September. I had only been out with my cart two other times that month, and sold 40 dogs each day for 3 bucks a piece. Chicago style dogs..Quality all the way too.
I teamed up with a local bar owner at the event, and set my cart up next to his bear trailer.(Doing this got me in the event right away, and with no event fee). The event was held in an upper class small city. The bar owner was selling beer for two bucks, and said we would make a killing if I sold my Chicago dogs for two bucks, too. I sold 150 dogs the first day. Hundreds of people passed by and turned their noses up at my 2 dollar dog. I actually heard one guy say to his family,”that’s just a 2 dollar hot dog. Can’t be anything special about that.” That hurt, but I learned that a low priced hot dog can make it suspect. I raised my price to 3 bucks at the beginning of the next day, and sold over twice as many dogs with a smaller crowd. I sold 580 dogs in all, and I will never lower my price again. I’m glad I learned this lesson right out of the gate!
Great post Steve!
Now to raise my prices and send out more “Tweets”!
During the current recession, that is currently being dragged into the new year by Obamanomics, it is very important that we deliver value to our Customers(clients). Delivering value is not a survival tactic but one that lends growth to your Food Cart business. The good decisions you make in bad times will be great decisions in good times. Do not wait for the bad times to make good decisions.
Steve makes good sense to keep your products at their current price point. If you are using quality meat-let your customers(clients) know-if you are using quality buns-Let your customer(clients) know. Next to your product you are the best advertisement for your product. It is your job pass that information on to your customer(clients) Clients is in parenthesis because I believe the term Customer implies a one time transaction. We all know how important our clients are. These repeat Clientele can help you deliver the concept of value to future clients. Take care of them and they will return the favor.
IM SORRY ILL ONLY CHARGE1.75@HOT DOG 2.25 FOR SMOKED SAUSAGE 3.00 FOR KNOCKWORST 3.50 FOR RED HOTSAND 4.75 FOR GYROS ON PITA AND IM GOING TO MAKE A KILLING
Hey David,
If you’re already making a killing – congratulations! That’s awesome.
Would you consider raising your prices for one week just as a test? Maybe you’re leaving a lot of money on the table and don’t even know it.
BTW, I totally respect you for posting an opposing opinion.
-Steve
Steve, The story goes like this. A customer walked into a propane company and asked how much they charged for a furnace cleaning. Seeing that it was summer and they were slow they replied $20. The customer asked if they could do it now. They replied yes. Cutomer asked if he could ride with the service man to his house. When they arived the customer paid the service man the $20 and said, “Don’t wory about cleaning my furnace.” Service man asked why he did not want his furnace cleaned. Customer replied, ” Cab fare out here is $25.”
Ha!
Steve,
Your article was great.I bought one of those silly hot dog hats last year and it turned out to be a great idea, i soon had to buy two more as my customers especialy at larger events wanted pictures with the hot dog guy wearing one of the hats.This led to a face book page with many pictures and comments. We have even attended meetings not relating to the cart in other towns, where the subject of the hot dog guy with the hat and great 1/4lb hot dogs came up. You can also list events and specials ect to all your fans.
Right on Rick!
I started this gig in April with a plump polish on a bun for #2.50 and the chili/cheese for $3. I soon made the price for ANY dog $3, as I didn’t want to mess with change (tax is included). Few and far between is the fool who passes me up, complaining about my prices. A few weeks ago this man paused to read the menu, and said well gee, he could get a whole package of dogs at the local store for 50 cents (I doubt this). I cheerfully encouraged him to do just that. “Bon soir, cher! Au revoir!” A minute later, he returned, and got the chili/cheese dog (I have beau coup free fresh condiments, all the best Cajun sauces, peppers, and spices appropriate for a dog). This crotchety sucker has since become a regular.
When people walk by and ask is it a “Lucky Dog” (the carts in the French Quarter), A Coney, a Chicago style, I always say, in the local patois, “Mais, cher, dis is a C******s Dawg”, using a local loving word for “Cajun”…that is not cool to say unless you are one!
The Frito Pie sells briskly at $3. No, I do not need to feel like I hafta compete with the dollar dog at Walmart!!
Am the only dog/BBQ vendor doing the annual Boucherie down in beautiful St. Martinville. February 13th, if y’all down for Mardi Gras (will be along the parade route for that too!!) Not for the squeamish or those intimidated by happy, drunk, dancing Cajuns!!
steve the price makes alotta sence now tell me about the up sell 2 dogs soda and chip $?
Hey Famousray,
As in all things – test, test, test. Try different price points until you meet some resistance, then back it off a notch.
That’s the only true way to determine how high a price your local market will bear.
-Steve
Well, I guess I need to go up because I get $3.00 for a hotdog, chip and 12 oz coke all name brand and $4.00 for a all beef sausage dog, chip and 12 oz coke, expect when I go to a fesival where everything goes up $1.00. I have been real happy with my profits at this point but I guess you need to understand I have no cost to spot my cart, no city fees and just health department and Serve Safe fees to pay. Maybe I will go up in the summer. Duggs Doggs “Good!! Good!!
You also need to take in consideration what part of the country you are selling in. We are in a small city in the south. We cannot sell our products at the same price that you might sell for in NY City or Chicago. You can get cheap hot dogs around our area @ 2 for $1.50 at any of the Quick Stops. So we sell our basic dog at $1.50 each ($2 at special events) but we use top end products. We can buy these top end products locally at very reasonable prices. But if we where selling in a large city, we would have to charge more.
If you check out my webpage, you will see what I have my items priced at. I feel like I’m on the low end, but for now I can live with that. However, as soon as I start getting supplied with Vienna all beef franks, I’ll have to raise the price of the Chicago dog simply because I’ll be using a premium frank for my staple. As far as the other prices, I will keep them at where they are. No one has complained about my prices yet, in fact, I had someone comment that they would have expected to pay at least $5.oo for a chicago style hot dog, and thats with the franks I get from Sam’s Club! I’m excited about the future and what it holds in store for me and my hot dog business. I’ve already have folks trying to hire me for the 4th of July parties!
Thanks Steve, for mentioning me in the story, that was totally awesome reading it earlier today. Keep up all the good work, and lets all sell lots of hot dogs!
Esteban
Hey Guzman! what kind of franks you get from sam wholesale?
Thanks Steve and all for the great article!! I am almost done with The Rte 66 Little Red Wagon!! Will be opening soon!! What do you think about a Southwest dog? (roasted corn, tomatoes, and green chilis?????) Can’t wait for the Big Foot movie to come out, you had better believe I’ll be taking advantage of that!!!
After figuring all the costs including meat, The bun,condiments propane, insurance. we sell our dawgs 2.50 sausages 3.00 and work on a 78% markup don’t see any reason to go up we are in a small town and sell between 55 and 100 dawgs a day during the winter and double or more when the tourists show at the diamond mine.
Jim and Kay ” The Great American Dawg wagon’
Jim and Kay “
Thanks Steve! Just what I needed!
i like the storys every body had the prices an there location .hope to get started soon .thank steve i getting ready to build one of your carts .cant waite ron
steve i think you are doing it right could toy send me a photo when you are finish with it and how you put it together thanks alot if i need to pay you auy thing please le me know thanks tony
As a semi-comparison look at what the burger, sub, and other fast foods are giving you for $5 or more, some dont even include a drink or side for that. Surely a fresh cooked quality beef dog with the trimmings, name brand drink and chips is worth $5 dont you think?
I do.
John, absolutely, especially if you offer top end hot dogs and fresh toppings, 5 dollars is very reasonable! I’ve changed up my prices a bit because I’m now offering Vienna beef franks for my chicago style hot dogs but its worth it. I still have the Bakers and Chefs franks for my other offerings, but I wanted Vienna for my chicago dogs to be truly authentic. I can tell you what, people down here in Central Texas who have never tried a chicago dog are truly raving about my hot dogs and I’m excited! I’ve also added more items to my menu without actually adding to my overhead. I’ve already had the food, I just decided to be a little more creative on how I serve it. Good luck to everyone, hope its a great year for everyone!
Esteban Guzman
Stevie’s Red Hot Wienies
Great read, thanks so much. As we continue to develop the best Hot Dog possible at Boner Billy’s Famous Hot Dogs we are always looking for great ideas to market, and provide the best for our customers. Thanks so much.
I started selling dogs .25 cents more than my competition a block away. He was outselling me for the first three months. Eventually the word spread that my dogs were much better, now he complains to me that I am running him out of town. I also heard he complains to customers if they use too much ketchup. Be friendly, sell a good product, and make your money on quantity. I also have more condiments than anyone in town. Chili, Cheese, Sauerkraut, Stewed Onions, Raw onions, Relish, Hot sauce, ketchup, Mustard, Honey Mustard, and Spicy Brown Mustard. Oh yeah, i also have a styrofoam container for customers that want it to go. Costs more, but they keep coming back day after day. Happy Dogging
Maybe my prices could be a bit higher. I may try raising just 50¢. We’ll see. Good to hear what others in the biz are charging around the country. I sell only Vienna Beef brand dogs and toppings. I am considering a non-meat substitute for the vegetarians out there, but I would charge 50¢ more, or maybe even $1 more instead. Kinda hesitant about the veggie dogs, but I do rarely get someone who asks for these.
Hey Steve great post mate,
Im from the land down under and I charge $4.95 for a hot dog. I dont charge extra for extras and I go heavy on the condiments. I run a mobile food van cart set up so the guys pay for added conveniance when I come straight to their work place and set up.
Have had some managers complain and I’ll tell em straight up that these are the best hot dogs in perth, and if they want cheap hot dogs they can call the competiton, coz they sell they worst hot dogs in perth. I will NEVER lower my price…EVER!
GReat post
Can you hear me clapping my hands, Mark? I’m whistling too! Right on mate, profit margins are everything to small businesses such as ours.
“these are the best hot dogs in perth, and if they want cheap hot dogs they can call the competiton, coz they sell they worst hot dogs in perth.” I LOVE that.
O.K. Hope im not asking a question already explained and I missed it but I asking anyways. I will be starting my HD cart in about two weeks and am UP and DOWN trying to decide if I should go full fledge top quality dog or a good quality dog to start. Im losing my mind!! I want to do a top quality dog but wondering if something like Bakers & Chefs Beef Franks will do til I get on my feet. I am not exactly rich to start off top quality like Nathens and Ill lose money because Im not even sure at the moment if my location will cover the expensive dog. Are Bakers & Chefs Beef Franks good enough to start? I have a killer homemade chili and will be using real shredded cheese. I also have a homemade slaw and other fresh ingredients.
Any decent all beef hot dog will work. Stay away from the pork and turkey filled dogs. You will find that your location will support the brand name dogs as long as you give you customers a unique experience to go along with it. This business is more than just the food! Good luck Christine!
Thank you! I finally got a straight answer from someone ;} I was on road foods for a while in the professional hot dog part and all i got was people screaming how dare I not use a Nathens or some other expensive dog made me feel as if I was going to food poison someone lol! I eventually want to use the expensive brand but Im just starting new. I have never done this before so I don’t want to dig my self a hole til I get grounded. Im thinking of chefs and bakers for now with a good quality bun.
That’ll work. We try to run a friendly joint here Christine – welcome aboard!
I just re read what i said…I don’t want to dig my self a hole til I get grounded” huh???? lol! THANK U
No worries. What you encountered is a real problem, especially for newcomers to the industry. We try to create an atmosphere here at Hot Dog Profits where you don’t have to be afraid to ask even the simplest questions.
O.K….I tried Bakers and Cheifs from Sams Club and they were horrible! I bought the box of 80 and wished i hadn’t now. Maybe they will let me return them lol! Im back to square one again trying to find a good dog thats not going to break me. Maybe I should just buy the Nathens and just charge more. I just dont want to scare off customers with expensive hot dogs. What do you think? Also, I tried the Skyline chili and cant figure out what the fuss is..it tastes like pumpkin. Ill stick with my own chili recipe if the HD lets me do it. Still waiting on them to approve my menu. ;}
Don’t sell your dogs too cheap. You’ll be out of business in a year. Sell a high quality product and don’t be afraid to charge for it.
A lot of slingers use Bakers and Chefs and turn a good profit with them. Try them on your customers and see…
Oh yes, the only reason I got Bakers and Chefs is because the great reviews. Typically I try a dog first but didn’t this time. Wont to that again, that was dumb lol!
Mark from down under kinda helped me with my dilemma…Thanks Mark…I agree
I never really had a chance to read through this whole blog and now realize most of what im worried about here the answers are.
I’m glad you find it helpful Christine!
-Steve
Hi Steve- I’m a teacher, and have been thinking about running a hot dog stand here in CT during the summer (mid June – mid Sept.)… I grew up in the restaurant business, so I know about food. Do you think I can make a go of it during the summer?
I never promise specific income results because like any business, so much depends on you. But if you follow the training in my book “Carts of Cash” you have an excellent chance. The proof is out there – there are so many folks making great money in the hot dog business. Why can’t one of them be you?
Let me know if I can answer any more questions!
i think 1. 00 A DOG IS GOOD PROFIT WHY BE GREEDY
If you’re happy then I’m happy. However think about this…
There are advantages to making more profit and it has nothing to do with greed. Not at all.
More profit means more money to reinvest in your business so you can expand and serve more customers who want your tasty food. This is a lot better than just scraping by, living hand to mouth, not being able to replace worn out equipment, not being able to buy quality food to serve your customers, and worst of all – denying folks access to your services because you don’t have the resources to reach them.
Think of dollars as “certificates of appreciation” that customers gladly give you in exchange for providing something that they enjoy. That’s what money really is.
We are not “taking” money away from people. People buy what you sell only if they feel they are receiving a greater value than the value of the currency they exchange for it. The customer makes that decision, not us. If the food and experience you offer isn’t worth what you are charging you will know it very quickly. The customer will take their “certificates of appreciation” elsewhere and happily give them to someone more worthy.
And most importantly, more profit puts more money in your pocket which allows you to help not only yourself, but others who are in need. There is an old saying, “It’s hard to help the poor when you’re one of them.”
I have been in the entertainment business for 20 plus years and have concluded that you are only worth as much as you charge. I have worked for clients that chose me because I charged considerably more than other entertainers.
If it cost a buck-fifty to build your dog and you sell it for a dollar… it’s only worth a dollar. On the other hand, if you sell it for 4.50, the customer will perceive a greater value in your quality product. Sales and pricing is ALL about perception. Like Steve has said… be unique!
What about Bison Dogs? Anyone doing those? I live in Montana so it is readily available, and not too expensive. I can get a 1/4 lb Bison Brautwurst for $2.25 each and 1/5 lb. dogs for2.19/ea. Do you think these would cost too much if I sold the Brats at $4 and the dogs for about $3.25? I would also use a high quality but reasonably priced bun from our local big bakery (Wheat Montana).
Your pricing is fine Justin. Sounds delicious! Send me some pics of those bad boys.
Justin,
What part of Montana are you selling in? I only ask because I am starting up in the spring in Western Montana. I was also thinking of bison dogs, or even elk. Those would definitely be a specialty and I would probably only do those a few days a week. I would like to talk and run some things by you and see what you think.
I have a question on pricing. I have 4 festivals coming up. I charge $3 on my cart every day and that includes whatever toppings. Is that the price I should charge at a festival or should I raise my price?
If you are going to see any of your regular customers there, don’t raise your price. If the festival is far away then raise prices two to three dollars.
Steve,
I have a old school circus looking food truck. I sell Dogs, Chili, Fries, Soup, Chips, and Hot Chocolate at a Farm stand/Fall festival(Pumpkin patch,hay rides..etc) on Long Island. Just added the soup to the menu (New England Clam Chowder) and finding that it is expensive to produce. Not to mention the cost of soup cups, the ingredients (Clams,Scallops,Pancetta) are proving to be pricey, but the soup is very hearty!!. I was thinking about charging $3.50 which would yield about a 50% profit being that it cost roughly $1.50/Cup. Am I wasting my time. Should I increase the price? It is already the most expensive single item on the menu, can you see me getting $4.00 or $4.50 for a cup? This would be more like 65-70% profit which is roughly where I have set all my other prices.
thanks Steve
The only way to know what the market will bear is to test it. Start out at $4.50 and see if it sells. You can always lower the price if it doesn’t move.
The really important criteria is whether the soup makes enough profit to be worth the effort. Calculate the cost of ingredients plus your time to prepare it at $25 an hour. This will give you your true cost of goods sold for that product. That is your break even point. Anything else is gravy.
oh wow, this is all great. I am starting a HD business and so excited. In reading some of the posting i see that we are just talking about the price for the HD. I will be using Nathans and Hebrew Nationals, with assorted buns. My question is that, i do want to add a soda and chips, but not sure as to, what to charge as a bundle. Recently, i was at flea a Market and the gentleman sold 2 hot dogs, a soda and chips for $5.50. Also, what do you think of the customer serving themselves with toppings. Should my specialty sauces sell for more. Thank You for your response….Oh i live in NC.
Hi Angela,
Congrats on getting started in the hot dog biz! We shoot for a combined profit margin of 65 to 70 percent on all consumables. That includes dogs, chips, sodas, buns, condiments, etc.
The key to pricing is to not underprice your products. Come up with some unique menu items, serve them with a great presentation, and don’t be afraid to charge for it.
Angela, Where in NC are you?
ok great blog, im looking to sell at my sons football games and i was wondering if since mainly high school students and parents will be there would a all beef frank be a good way to sell lots of dogs at a 1$ a piece.
Not if you want to make any money. Sell an all beef frank with awesome condiments and a unique experience and you can charge $3 or more. Good luck!
How do I get one
I am thinking to start up a hotdog cart business, I’m in the researching/studying-up-on-it phase right now. I agree with the $3 price point for one hot dog, maybe 2 for $4, and the $5 for a combo of one, and $6 for a combo of 2. There are two ideas of how to design my cart. One is to come up with a menu and call them unique names…but then I would have to dress them myself. The second is to place the “fixings” in an easily accessible place on the cart with serving spoons that the customers dress their own dogs. The above pricing would work for the 2nd, customer-dressed dogs…but that would knock the cutesy names off the menu. Such a dilemma. And thanks for all this information and interaction in which I learn from you who are experts already.
In a daily vending setting I dress the dogs myself. In a mass feeding setting such as a fair, festival, etc. I put up a table with condiments on it and let them have at it.
Hey guys if anybody out there I’m in process of buying cart was planning on doin 2 dogs chips & drink for $5 my friends say do one with chips & drink for $3 any suggestions?
Too cheap on the single combo. Charge $4 for that.
Having some problems with setting up with a commissary, if anyone out there is from southeast, NC and have any suggestions, pls email me
Ken try a church they seen ready to help maybe you could make a deal with them like you vend for one of there girls group or something like that I’m trying to start a vend cart bizz In angier nc myself good luck
That’s exactly what I did. Thanks George!
I’m wondering if by commissary your referring to?
I look up commissary and see a name for a restuarant, military official, food supplier.
Now your referring to a church and that makes me think the church is being referred to as a commissary due to the fact it may have a food bank.
A commissary can be any facility with a health department approved kitchen. The health department does not want you to prepare food in your own home.
Just wondering any one have good luck making and selling your own brand hot Dog?
I am very interested in starting my own cart with Chicago style dogs. I’m nervous and excited. I’ve been trying to get an idea of the over head cost. Beside the cost of the cart . I tried contacting a sales rep. In texas where I live with no luck. Can you guys give me a ball park figure?
Hi Sandy,
Sorry but that’s like asking what a car costs. You can pay $1500 or $150,000. It depends on what your goals are. The very least expensive way to get started is to build your own cart. I have a video series that shows you how to build your own cart using hardware store parts for around $800. It’s included in my Premium training. Check it out here. I look forward to helping you get started Sandy!
Any other recommendations would be great
I have been asked to run a hot dog stand at a church strawberry festival. This blog has
been a great help. But I have one question. I am assuming that steamed dogs are a lot
tastier and hold up better throughout the day under steam than say one of those roller
machines. Am I correct?
Yes, definitely! The steam (or water if you want to simmer them) keeps the hot dogs from drying out. Grilling, whether roller, gas, charcoal, or flat top, will dry out the hot dogs quickly. Some of us grill then place the dogs in a steamer to hot hold.
New here, Not sure how old this Blog is. But I disagree with the pricing theory. I Charge according to the event and clientele. I run a trailer from early May to late October along the Northern Ohio border / Lake Erie area. May brings out the fisherman eager to score in the annual Walleye-White Bass run. I bring out the Cheaper dogs and charge accordingly-Usually 2 for $2. These guys are usually looking for a quick bite and a drink. Coffee is a huge seller and very profitable. $1 a cup one size-12 OZ. At the summer events (Boat Races-Small Festivals) Out come the better cuts and sausages. Usually $1.50 a dog and $3 a Braut. I boil my dogs but I have a homemade Grill marker. Expanded steel grate that I roll the Dogs over. People seem to levitate towards mine just for the Grilling impressions. I keep my prices lower and this has caused a little tension from my competitors. So ..Don’t lock yourselves into one set price.
I respectfully disagree. Your margins are so thin that you must work three times as hard to make the same money as someone who gets 3 ton4 bucks a dog. Competing on price is a race to bankruptcy.
Awesome site! Thanks, Steve =)! ….and every participant thereafter! I will remain tuned in!!
Sometimes, it is easy to forget that this is a business. I am just getting started and consulted with SCORE in my area, they are a wonderful group to help with the business plans, marketing strategies, cost analysis, legal structure of your business and so on.
For me, it was a great way to open my eyes to the fact that while this is a small, self operated and owned business it is still a business.
Having a plan to cover all of your costs is good business sense, and of course it varies.
Right on Hannah. While most trainers concentrate on the basics like how to cook hot dogs, we go way beyond that. We devote the entire second half of our Carts of Cash start up guide to business planning, marketing, positioning, and legal structure. It’s the most in depth guide you will find anywhere. And now it’s part of our massive Hot Dog Profits Premium training. Go to http://HotDogProfitsPremium.com to see everything you get.
I have not opened yet. I am getting my cart in a few weeks. I keep reading that I need to use all beef dogs. What brand works best?
Any quality all beef dog will work fine.
Wow what a source of information and trails of life and answers to boot!lol, I hope that all of u succeed in all that you do! Thanks for the input, I finally took the plunge and should have my first cart in a few weeks. Then I will have a better idea of ideas. Merry Christmas!
Congrats on taking the leap Bob! Let me know how I can help you.
The best markup item on the cart is the drinks. As I learned from an experienced vendor, selling a $2.00 20 oz. bottle that costs you about $.60 instead of a 12 oz. can that costs you about $.30 will have you taking home twice the profit on drinks at the end of the day. Do the math. For most clients, bigger is better, and it helps make up for a slimmer profit margin on the food items. A wise person once said, “quality will be remembered long after price is forgotten”. I started out doing Lemonade shakeups at $4.00 for 32 oz., soon raised them to $4.50, and now charge $5.00, and have never had a complaint. Meanwhile, I have created a shakeup that have clients seeking me out over other lemonade vendors at festivals.
When I do food, I use GFS 5/1(5 to the pound) all beef dogs and charge $3.00. A Chicago dog goes for $6.00 with no complaints at festivals. Just make sure you do them right. Chicago people know their “Chicago” dogs. Finding what you need is tough if you’re not in the Chicago area. Neon relish, poppy seed buns, and sport peppers are on the shelf in NW Indiana & Chicago, but unheard of in other areas. I have started using GFS 8/1(8 to the pound) all beef dogs for the Chicago dogs, etc. only because the 5/1 leaves very little room for the required condiments. Slaw dogs(chili and slaw) is popular with people that have spent time in the south. This also gives you the chili for coney dogs, my favorite, (chili and chopped onions).
Great job Papa Smurf. For all of you that can’t find neon green relish or sport peppers, call Vienna Beef and ask for a distributor in your area. They can hook you up.
oh geez – lol – a quick question to everyone; are you in this wonderful business to make a living while having fun? Or are you worrying about how much you sell your dogs for to be competitive? Yes, it’s a fine line to tight-walk around!
In two years, I’ve raised my prices three times. Yep, three times in 24 months! Each time, never ever a complaint. Now at my cart, with a 8:1 Nathan’s, $2.75 (should be $3, but whose counting quarters – oh yea, I AM!!! ) A single dog meal w/chips and drink is $4.25, and two dog meal is $6.50. Whenever I’m set up at my regular location for lunch, it’s not unusual to have a dozen or more people in line, and that line stays the same from about 11:45am until around 1:15pm.
Inside my brick&morter, I started out a little lower (quarters…)but just since November, I’ve gone from “tax-inclusive” pricing, to “plus tax” – which means that’s an immediate 10.8% increase, or a swing of $2.16 in total gross income (yea, there’s some math to think about), and just this month, I’ve began charging for “Premium” condiments – red onion sauce, shreaded cheeses, nacho cheese, bacon, pepperoni, cole slaw. New customers everyday, and one of my regulars recently said “it’s about time you started charging what your franks are worth!”
AND, my average ticket has gone from $5.50 per, to almost $6.50 per ticket/transaction (I hate numbers, but I know mine -lol), and that’s with daily new customers constantly increasing. I’m still the most affordable lunch downtown.
Did I mention there are over a dozen-plus restaurants around me, and a hundred-year-old hotdog only lunch counter less that 50yards across the street from me.
It’s up to you if you want to be just another hotdog slinger, or if you want to set yourself apart with quality, customer service, and friendly inviting atmosphere (and that’s true for a cart, or brick&morter setting – I do both, and make sure of those three things are in place everyday, for every customer)
Sorry to ramble on Steve, had a little time before I opened for the day.
Forget the cheapo weenies, ROCK ON with a great all-beef frankfurter
Good to hear this advice again from yet another very successful hot dog slinger. Thanks Mike!!!
Im in my 4th year of slingin dawgs and I only raised my price once. I started at 4.00 per dog any dog and any topping, $5-.. if you added the lays chip and brand name soda (can). But, then I went to $5.00 for the chicago dog, because the sport peppers and relish is soooooo expensive. I live and sell in Craig Colorado and had to order those condiments. I sell the 1/4lb Nathens all beef, and my buns are made fresh daily by our walmart store. The dogs are well recieved and im only seasonal, from Labor Day to Memorial Day. This year Im going to to do all dogs at $5, and if they want the meal deal with chip and drink it will be $6. I was told by so many customers last year that I was too cheap.
DOes anyone know of a way to get the neon relish and sport peppers without breaking the bank.?
Good for you on raising prices. Call Vienna Beef and see if they have a distributor in your area. A distributor can get the neon relish and sport peppers in 5 gallon buckets for a great price. That’s how I got mine here in Missouri.
This is the best blog you have sent! Three GOLD STARS to you Steve
Everyday we try to be better than the day before….this keeps us focused on our priorities
joe
Thanks Joe.
If you’re like me and don’t want to sell in the winter, it’s a good time to curl up in front of the fireplace with a good book, like Steve’ Carts for Cash, etc., to learn the business or consider adding to your business by catering, etc. It’s also a good time to go on line and or request catalogs and check out wholesalers prices. You can access many on the internet, Sam’s Club, GFS, Gold Medal, and many other concession sites. Prices can vary greatly for both equipment and supplies. However, sometimes paying a little more locally for equipment pays off if they would provide a spare replacement unit if yours happens to break down just before an event. Something to consider. Talk to their salesman. Sometimes they’ll also provide promotional items, posters, etc, or free samples of their brand if you ask. The worst they can say is no.
I recently needed chocolate chip muffins for a venue. I found $24.95, $25.95, and $14.95 from three different sellers, all for the same brand in the same package of 24? While not always that wide a margin, prices do vary. However, the lowest seller in that case was not always the better price on all the other products I needed. As Steve has said, you must also consider shipping and your time and travel costs in the final price. Usually delivery is only available in larger volume purchases to a commercial location. Always remember, there are only two ways to make money, make more or spend less! Being able to sell the best possible product at the least possible cost should always be the goal, but it involves a lot of research. Many wholesalers will want you to make them your one stop shop, but that rarely works. SHOP AROUND!! Then go out and make a good net profit. It’s not how much you gross, it’s how much you have left for yourself after all expenses that makes it worth doing.
Shopping around is a great way to increase margins. Thanks Papa!
Instant Total Cure for the subject of Pricing!
All you have to do is visit any sit down restaurant or franchised establishment and order from their menu!
I challenge you to walk out with a complete fresh, hot, tummy filling, tasty meal with beverage, served with a truly friendly attitude and smile for under $5.00!
Anybody up for the challenge?
Compete on the quality of your food and of your service not on price!
Hope this helped.
Good luck,
Clifford
P.S. EVER EAT A TWELVE DOLLAR HAMBURGER?????!!!! YES THEY ARE OUT THERE!
Exactly!!!
Thanks for the tips and Ideas. Your the Best.
My pleasure.
Hi Steve,
I’m set up at a leased location on the weekends at a “Premium Outlets” shopping area center near the SF Bay Area.
All my meat products are top quality locally sourced, customers dress their own dogs, we have ketchup, 3 types of mustard, Sweet bay Ray’s BBQ sauce, Sriracha sauce, mayonnaise, onions, sweet relish, Jalapeños .
We used to sell our premium dogs for $4.50, combo (dog, chips, drink) for $6. Polish, Hot Link or Chicken Sausage for $5.50 (combo for $7). Solo chips at $1 and solo drinks at $1.50, (Coke, Diet Coke, Sprite, Water), Outlet vending machines sell water and soda for $2. During warm months we did a fresh squeeze 32oz lemonade for $4.50, strawberry lemonade for $5.
We decided to simplify and eliminate the quarters, and also give people incentive to buy the combo, so now our dogs are $5 (combo still $6) and Links, Polish and Chicken sausage are $6, combo $7. We charge $2 for drinks and $5 for lemonade, regular or strawberry. (Lemonade moves pretty good when it’s warm – people are fascinated watching us make it right in front of them, we always put fresh mint leaves in – “it’s all about the show”.
We’ve eliminated the quarters and find that we sell more combos. They see on the menu solo drinks are $2 but when they want a dog they get drinks and chips for only a dollar more, they think: “what a great deal!”
We give outlet employees and public safety personal 10% discount. We cater private and public events and do a few farmers markets during the week summertimes.
Jonny
Beautiful! Congrats on your success Johnny!
I have been thinking of starting a hotdog cart . I was wondering if someone could possibly give me about a yearly average for this kind of Buisness ??
Not possible Matt. It varies so much. I know people making $20,000. I know people making more than $100,000. It’s really up to you. If you want an idea of how much you could personally earn take my quiz here.
I just saw above a post re: quarters; Steve, I know your stance quarter price points, and every situation is different. At my cart, midway thru summer of ’16, I started placing a tip jar, and a few dollars began being placed in that little jar on top of the cart. Well, on my first price increase (which was 50cents), that little jar went from having $5-$15 a day in dollar bills, to the same amount in paper PLUS another $10-$15 in those shiny little quarters 🙂
Yes, change is a pain to deal with at a cart, but doubling tips on top of your profit makes it worthwhile (or at least it does for me!)
Every penny counts – or in this case, every quarter adds up fast
Thanks for your great site! Always enjoy sharing, and love learning new things also from everybody
Yes, that’s a good point Mike. I would stick to quarters though. Anything smaller gets to be a pain real fast.
I don’t know where this Steve guy is from but here in New York hotdogs are $2 for regular toppings (ketchup, mustard, onion, sauerkraut, and relish) and $3 for special toppings like chili cheese and everyone makes a killing even with tons of competition around. When I see hotdogs for cheaper prices, sometimes $1 at special events do you know what happens? People buy more of them and they are the same premium quality. There is no way I would ever pay $5 for a hotdog unless it was some gormet one with truffle oil on it.
1. I’m from St. Louis. In most places you can’t make very good money selling hot dogs for $2. It may work in New York City if you have enough foot traffic.
2. How do you know that they are making “a killing”? Did they show you their books?
3. Yes, people would buy more $1 hot dogs than $5 hot dogs. But the profit margins are so thin that you’ll be working 5 times as hard for the same profit as the guy who sells $5 hot dogs. Why would anyone want to work 5 times as hard for the same money?
4. I don’t doubt that you would not buy a $5 hot dog. You are not our target market.
5. Your thoughts about our prices don’t mean very much to us. We’re doing just fine. When you open your own hot dog stand you can charge whatever you want to.
having sold dogs for the past seven years as a hobby I have raised my prices once. 3.50 for a 1/4 # all beef dogs(gluten free) that can be a biggy at this time. 4.50 for a combo. I have kept my prices the same for five years, every year I sell more as people find me. I started a few years back to sell water 2 for 1.00 and get people that way to come back. Although I am always puzzled at the number of people that walk by and never notice the sign for water 2 for one( sign can be read from 15 feet away)
then buy a water next door for a dollar or more!!
“sell em’ all”
Jerry
Just another thing to add… re: “don’t know where this guy Steve is from” ( a huge lol) – That Steve guy is from the Land of Oz, and his web site has loads of great I formation, just like the Wizard!
Anywho…. What part of NY? If it up-state NY, or on that middle finger called Long Island, then it doesn’t really matter, unless you are referencing the real part of NY. I hear it everyday “your price is too high”. Then my answer is you you get what you pay for. In my mind I’m saying g to myself “well don’t buy it then. I have anywhere from 150-to-200 customers a day,, so I know it’ll be gone soon” Many of my weekly regular customers are from NYC, or the metro area, and they all say I am too low on price for what I offer (isn’t it great when loyal customers let YOU know how much they value your product. One of my daughters just got back from NY, and told me carts are everywhere, and the lowest price she saw was $3 with basic toppings. Add SK and red onion sauce, add another buck or two. My neighbor, and one of my employees are from Brooklyn, and they both have said the same thing for the past two years to me. I’m NOT going to ever EVER buy a $1 hotdog, FROM anyone.That tells me they don’t care about what they serve, and more than likely don’t care how it’s handled (i.e. basic sanitary practices, or following Health Dept guidelines). So here’s my prices- Nathan’s 8:1 for $2.75 Nathan’s 4:1 $4.00 – and if you add any of our premium condiments you add 25cents (Premiums are red onion sauce, chedder cheese, nacho cheese, motzerella cheese, bacon bits, pepperoni, pinapple, Cole slaw). These premium specials outsell a basic hotdog ALL DAY LONG! Oh, did I mention tips? If people don’t like the dogs,why are they filling the tip jar up everyday on-top of those “high prices”? hmmmm
Sell a $1 hotdog, you might get a 10cent tip, from the 10cent clientele you might be catering too. I like catering to my super customers. Those who value my product, value my services, value me, and look out for me every day (a topic today was birthday gift time, for ME! I have the bestest fricken customers in the world.
AND one more rant (hahaha); I love it when I get the chance to engage in a conversation about prices with a customer, with this comment – “you can buy a whole pack of hotdogs for $2″ yes you are correct, but that would be a pack of weenies made of pork, chicken, and beef, not 100% kosher Angus Beef, or inc?use the pricing of let’s say, $22gal red onion sauce?, or true chilli con-carne. Oh, did you know that $5 hamburger you buy at wherever , if you made it yourself actually cost less than 75cents? So comparably, my hotdog is actually!!y e better buy that you think” – in a polite way, over the past two and ha!f years, I’ve enjoyed this exact conversation at least a dozen times. Many of those, have became regular customers
That’s all for now
Thanks again, where ever you are to Steve
Thanks Mike, great response. I know how successful you have been and I know you don’t compete on price. Good for you!!!
FYI, Oz in my case is a small town out in the boonies, 45 minutes from St. Louis Missouri. LOL.
I’m in Montana and unlike a lot of the country, the only place you will find a dog for less then $5 is the convienence store. We sell our plain Brat for $5 and our plain Dog for $6. Of course we use Johnsonville Brats and jumbo Hebrew National Dogs, and our buns are made at a local artisan bakery.
So the corner of the country does make a pretty big difference. My area is very gourmet, and I really went back and forth on what to charge because I wanted it to be affordable, but in the end I think we are good for our area. That’s not even considering our specialty toppings.
Always remember! Never apologize for price!
Hi, Steve is Maria here. I make my own red onions NY stile and my chili. the clients love it. It’s fresh every time.
Nice! Fresh is best.
I love everything I’m reading on here I’m getting ready to buy a cart thanks everyone for all the good advice. Hi Steve got a question but not for the post your ears and eyes only don’t want my plan out here just yet email me please
I got your email Eudell. Just answered it. Cool idea!
John
Just wondering any one have good luck making and selling your own brand hot Dog?
Hey Jihn, I run a American Style HotDog Trailor in Germany. Since you only can get convienience Hotdogs made of Pork I sat down with my butcher and we made my own Beef HotDogs. It took us about a half year but the customers love them. It doesn´t matter what we put on them as a topping. It always tasts delicious ! So give it a try and you have somethoing you only cant get them from you !
Greets Perry.
Great strategy Perry!
We all need to price our dogs depending on where we are as well as volume of sales possible. We sell our premium NY brand beef dogs for 2.75 -3.00 depending on toppings. Our 1/4 lb. Smoked Sausage is 5.00-5:50.
We have to rely on high traffic festivals to do really well. ( Sadly..all were cancelled due to Covid)
Street vending in our area is highly restricted and there is not a killer spot to be found.. however we vend at a local military base and pocket a few hundred $$ a week doing that.
Just started my cart up a few months back. To cold now living in the mountains in a small town. I sell my all beef dogs at $4 a dog and get the second dog 1/2 price. Single dog meal with chips and choice of a name brand pop or water $6. Double dog meal $8. Chili dog meals and polish dog meals a $1 more. BBQ pork sandwich $6. I work Prime hours 10am/2pm. make $200/400 a day. My first day out I averaged a dog every 2.8 mins. Keep in mind theres less then a 1000 people in out town and less then 5000 in the county. Location is key.
That’s awesome Grady! Keep up the good work.
I just started my business March 1st of this year. I live in very small town in Northwest Georgia. My prices are as follows
Plain dog-$5
Chili dog-$6
Chili/slaw dog-$7
Combo meals are-$7, $8, $9
Never had a complaint and I sell between 72 to over 100/day. Sell nothing but premium products.
That’s awesome Jody! Keep it up!