Hi Steve,
My city has spots that you can put food carts and trucks on the street. Those spots are up for bid . How much should I bid?
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That’s a tricky one. I’m assuming you don’t know what the typical bids are, so you are going to have to work from a different angle – how much is the maximum that you can you afford to pay?
You’ll have to figure out how much you make per vend (selling price minus cost of dog, bun, condiments, chips, and soda). Then multiply that by the number of vends you think you will do per month at the spot you are trying to secure.
Next, you have to subtract your monthly overhead costs. These are the costs that stay fixed no matter if you sell one dog or a thousand. Things like your desired hourly wage, propane, ice, travel costs, advertising, licenses, etc.
Now you know the most you can afford to pay per month for the spot while still making it worth your while.
Knowing how to sell is only half of the equation. You must commit to mastering the business part of the hot dog business if you want to keep more of the money you make.
Ever wonder why there’s not as much money left at the end of the month as you think there should be? Want to know the tricks that top vendors use to increase their profits without selling more hot dogs?
If these things are mysteries to you, then it’s time to up your game and get control of your business. We lay it out in easy to understand language in my 80 page hot dog business management book. Click here to read it.
-Steve
Off subject, I thought I saw one of your Hot
Dog Carts on Episode 9 of Longmire on Netflix.
Yep, I am a fan of that show too and I did see an E-Z Built hot dog cart in the court house scene. I think the show is actually filmed in New Mexico. Not sure who owns that E-Z Built Hot Dog Cart. If you are reading this let us know who you are!
Better be a damm good spot if you have to pay for it!
Our local city designated 20 “Vendor Sites” in the downtown area. Minimum bid was $250 per month. After 6 months all the vendors that won the bids were out of business. The city cut the minimum bid to $150 a month – only 1/2 of the spots are filled and only 1 is a food vendor.
Unless this is your only option – I would look for a “free or low cost” spot!
Best wishes –
TopDawg
I don’t like to pay for spots either but it can make good financial sense if there are enough people at that location. For example, wouldn’t you be willing to pay $500 a month if you could make an extra $2000 profit? I’d do that for sure.