Hi Steve,
I am having a dilemma and need your advice.
My husband and I have a hot dog cart for last 3 years. We tried few different locations & decided on one. We’ve been here for the last 2 and half years. We live in a small town (under 3,000 pop). This spring a lady vendor comes & sets up at the same location. She sells dogs & burgers (like us) but she puts her price $1 less. She has a trailer so she sells fries. We still get our customers but new people go there because of the fries and she is driving us crazy.
Please help- what to do? We loose about $100- $150 per day. Grrrr…..
– Val
+++++++++++++++++++++++++++++++++++++++++++++++++
That damn free market system! LOL, just kidding.
Competing on price is just a race to see who goes out of business first. Let her take that route. Just think how much it must suck to be her, working just as hard as you, and making a lot less money.
The bottom line for any business is that you can compete on price, or you can compete on quality. I highly suggest the quality approach. BUT – you have to justify it. Here’s how to do that…
People never buy something based on price alone. They buy based on the perceived VALUE. Value is just another word for “getting your money’s worth”. If you think that spending a little more is worth it, you’ll buy the higher priced product. That is the reason why Yugo went out of business.
You are going to have to do something to convince the majority of customers that you offer more VALUE. That you are worth more than your competitor. That doesn’t just mean your food. It includes the customer experience – big time.
How fun is it to come to your cart? What do you do to make eating at your cart an awesome, fun, exciting experience?
- Do you wear a uniform or just jeans and a t shirt?
- Do you have punch cards and incentive programs or do you just hope people come back?
- Do you offer “signature” gourmet hot dogs with a photo menu or do you just sell hot dogs.
- Do you have fun, energetic music playing or is it just quiet?
- Do you have colorful, flashy, eye catching signage, swooper flags, and streamers or are you just standing behind a plain old hot dog cart?
- Do you do any marketing in the community to set yourself apart from your competitor, or do you just show up at your spot and hope?
Implement all of the ideas above and people will be drawn to your hot dog cart. Once they experience the fun and excitement of your business and enjoy one of your signature hot dogs, they won’t ever want to downgrade to the cheapo food across the street. What’s a buck when it gets you so much more?
As for fries, I don’t really think you need them to compete. I hate doing fries on a cart because of the mess and danger of hot grease with out any barriers between the fryer and the customers. Especially with kids around. Just offer a good quality chip and you’ll be good. (I’m sure some of my slingers will disagree with that statement, lol!)
You’ve got this Val. Go get ’em!
-Steve
P.S. Any tips for Val my slinger friends? Leave them in the comments section below. (We just updated our site and the comments box is now at the bottom of the page after the comments.)
We set up every Friday across the street from Sonic Drive-In and a gas station most often they have hot dogs from $0.50 to a dollar and we still sell ours for $2 apiece. We’re faster better and have a lot more fun at it.
On Thursdays I set up at Anna Park along with another food truck that has all types of gourmet food and they sell hot dogs and french fries. But their average wait time is 10 minutes. We do a better job, we do it faster, we tell jokes, we have Punch Cards, we have a lot more fun with it, and our average time is less than 90 seconds.
Competition is good for business because you know people are coming there to eat you just have to be better at what you do and have more fun at it. Our sales have actually gone up since the food truck has arrived. We sell about 300 hot dogs in four hours.
$150 an hour. Gotta love it. Good for you Pastor!
Try customer surveys and ASK them what they want. What brands do the locals insist on? And this one is a biggie!!! Cook something deliciously smelly like onions on the grill. That will draw them in from half a mile when the wind is right!
Right on Robin! The smell of onions is irresistible!. Oh – and wear a pink cowboy hat 😉
The smell of bacon is even better.
Mmmmm bacon!
Hi Steve,
Mike here w/”der Ftankfurter Cart”;
Been a while since I posted anything, but I just had to chime in and put my 10cents in (not 2cents, that’s the quality difference-lol)
I agree with you on this one. I sell Natahns all-beef 8/1 frankfurters (ONLY FRANKFURTERS) at $2.75ea. There are two brick&morter hotdog businesses within three blocks of me, and many of my customers walk by these everyday to come to me. They sell weenies for $1.40ea, mustard chili onions only. I have 10 different condiments, with a ny style being my second best seller. I’m grossing between $250-$400 a day, with a GM of 72%, and only sellin from 11am to 130pm 4 days a week (I pickup catering &/or events another day 3-4 days a month – $500-$1500 ea on those)
If you got quality, personality, and great service, they will come to you. If they want cheap, politely just tell them where they can find “a cheap ol weenie”
Two years rolling for me, and I’m currently getting ready to go into a brick&morter myself by November. I never thought I’d do that, but that’s what “quality” has done for me.
Just think it out, make a plan, work your plan, stick to your plan, and your plan will work !
I love, love, love your story Mike. Congrats on your success!
Like my matey Steve always says.
Sell the experience !!!
Be unique in your own way.
Own approach is to keep it simple.
Imagine having to clean the fryer & surrounding area every day !!
Arrrrrrrrgg !!
Hang in there. Quality always comes out on top.
1St Mate Jim.
(Retired)
Aye, me salt. Arrrg!
I used to own a hood cleaning company and our mantra was “never apologize for price”. There were plenty of other companies that would do it for less. We called them “beer money cleaners” because that’s typically when they would come out of the woodwork. We eventually became 2nd in the state, and we were amongst the most expensive and one of the smallest crews. It was our quality, and the little “extras” in our service attitude that made us popular fast.
Keep it up.
“Never apologize for price.” Brilliant.
We have a part time similar issue…
So I updated my menu, I added Italian hot sausage with cooked onions and peppers I also added meatballs and sauce sometimes I add pulled pork and Italian hot dogs (with the cooked peppers onions and home fried potatoes) My condiments include jalapeño peppers and crushed cherry peppers with all the normal stuff. My other snacks include chips and popcorn, prepackaged cookies, candy (that doesn’t melt in the heat) prepackaged cotton candy.
Good luck.
Great point Rick. Offer things that your competitor doesn’t have. I like it.
Good advice from Steve. I put on one of those hot dog hat’s as a joke when we started. It became a trademark for us. Kids made their parents turn around to get a hot dog from the “Hot Dog Guy”. I can’t tell you how many pictures I posed for with kids, adults and pretty young ladies.
Even out of uniform people would say hi to the hot dog guy at the store, theater or gas station.
Who’d a thunk it?
That is too cool Jack. I remember your hat!
As Steve mentioned about my pink cowboy hat. I never thought that would become a tradmark, but as you say, people want to pose for pics and kids and adults alike want to go to the pink hat lady!
“The bitterness of poor quality lingers long after the sweetness of low price”
I have just about everything you mentioned above. Music and food draws a crowd. You can purchase a 50 watt speaker which works from Bluetooth from SAM’s club the brand name is ION
I have logo t-shirts also along with a lot of signage and feather flags.
Great tip on the bluetooth speaker Gary! I remember back in my start up days I burned a few custom music mixes on CDs. A blend of music from the 50s, 60s, and 70s. Some country, some rock and roll, stuff that appeals to the folks around here. I played in on a boom box and everyone loved it. Good times!
Robert Polet of Gucci said, “quality is remembered long after price is forgotten”. I serve a lemonade shakeup that my customers say is the best they’ve ever had. Yes, at $5.00 for a 32oz., I lose some sales to first time buyers who shop price at festivals, but I also have a lot of repeat customers that will tell me they walked past several other shakeup vendors to find me. My helpers and I wear shirts and visors with my logo, and we “chat them up” as we prepare their shakeup. And I sometimes play 50s tunes, my favorite, on my Sirius boombox. I apologized to one customer for a short delay serving her, and she said, “that’s OK, I’m enjoying the music. When I serve hotdogs, its a 5/1 dog, and I charge $3.00, or $5.00 for a Chicago dog or slaw dog. I get a lot of favorable comments on how big the dog is. When I do walking tacos, its in a 1.75 Nacho bag, or a 2oz. Frito bag, and tell customers we “custom build them”, adding condiments to their taste, for $5.00. You see many sold in 1oz bags, one way fits all for $3.00. I always say, “they sell a snack, I sell a meal”. And it only costs a little more to add $2.00 to the sale.
Everyone should go back and read Papa Smurf’s comment a second time. Lots of great info! I too have been experimenting with a 5 to 1 custom Angus dog. I got a case by accident from my supplier and put them on the cart just to see how folks liked them. I got a lot of compliments too. It’s a great “intermediate” size.
Well a couple of bums were sitting around a campfire,when one says to the other.,when I was in business my prices were the lowest in town.
Ha!
I really like this quote “never apologize for price” I live on Maui and am just starting to do my homework. I am a now a member here, and already have some supplies to start building my cart. Now I have went out and looked and even tasted my future competition, have to say not a lot of Slingers here on Maui so hopefully my hot dog business will do well. I have been talking with my local health inspector first to learn what I can and can’t have, she even gave me the do’s and don’ts along with some great suggestions. So their not all that bad! Anyway after seeing the other 2 major players on the island, I found that the better one serves $8.00, yes I said $8.00 dogs. They seem to be doing quite well. So as I was planning on setting my signature all beef dogs at $7.50. Do ya think this is too much? Granted these are the 9incher over 1/4 pound all beef dog with side of pickle and butter then grilled bun. It is Hawaii, if the market can handle it, why not go for it!
Indeed. I say go for it! Let us know how you do Dan.
I never, ever…ever apologize about my prices. I offer much more than any other food vendor who offers hot dogs. I have an awesome array of condiments; 14 mustards at last count. I offer fresh tomatoes, diced onions, grilled onions, sauteed peppers, sauerkraut, sports peppers, pickled jalapenos, fresh jalapenos and much more. Folks stop and star at my dazzling red clothed condiment table. I offer a handwash station, handwipes and more. I also have awesome music playing always.
Sounds enticing for sure!
Is there a possibility of using an air fryer for the french fries ? I have one I use at home and no oil is involved. I’m not an experienced “slinger” so please forgive if I’m off base here. But love all of the other ideas to improve sales.
Thanks,
John Trobee
Welcome John! Interesting idea… I’ll have to look into it. Some of the best ideas come from people who are new to the game.
I am new to the slinging game , but in former business was a goldsmith making my own gold and Silver.
Price was not an issue it was the quality of the product and I never forgot in business that they are buying your product and a piece of you.
Anyone can go on price but its just easier to sell quality and reliability.
I am selling all Yukon made meat and products . my only issue is the winter cold This where it is important to have a quick service and flexible payment. I rely on repeat business .
Keep on slinging
Good for you, Yukon Man!
Is it legal to play music what with all the copyright laws? I’ve heard of some bars and clubs that have live music being sued. This has always bothered the heck out of me.
I have never had anyone tell me to stop. However I did receive some info from an expert:
Hi Steve. Just wanted to give you a heads up on your comment about playing music on the cart. Can’t do it with previously recorded music. You would need a public performance license from the publisher. Playing a radio station live is OK. I was a DJ for 20 years and also taught copyright law.
– Kevin Michaels
A orice cutter came in because they saw a void…..Preset Vendor was not giviing them the EXPERIENCE
All details must be met to keep competition out
joe
Maybe, or perhaps they just have the “compete on price” mentality. Either way, the price cutter lives a hard life working for peanuts and eventually just goes away.