This is for everyone who is undercharging for their hot dogs.
I offer you the following proof that people will pay a lot more than you think for a truly great product.
Surefire M3LT flashlight. $395
Le Livre Chocolates by Debauve and Gallais. $550 for 35 pieces.
Salvatore Ferragamo woven silk tie. $190
Glenlivet XXV 25 year old Single Malt Whisky 750ml $349
Continuum Caliburn stereo turntable $90,000 – $120,000
Kind of makes charging $4 for a gourmet hot dog a lot less scary.
-Steve
Wow!!! My combos go for 4.25 and 4.75…. I think and have been told I am really cheap!! LOL. That’s good to know…
Good for you Obee!
heck, Nathan’s gets 5.50 for hot dogs here in vegas on thier carts in the casinos.
Yep.
True, Steve,
But tell me, what makes a hot dog a GOURMET hot dog?
In other words, how much do you have to put on it, or what do you put on it to make it qualify as such and justify a higher price?
Something more than KMOR (ketchup, mustard, onion, relish). Uniqueness counts. Novelty counts. Presentation counts big time – make it pretty.
Name each of your gourmet offerings. This is very important. For example one of my gourmet dogs is called “The Buffalo Cruncher”. It’s created with ranch dressing, Louisiana hot sauce and crunchy onion topping. Delicious.
Start with a quality all beef dog. I have mine made locally from 100% Black Angus beef. And I make sure my customers know it.
You can command a higher price if you offer something that the customer can’t get anywhere else. And that includes your presentation and the overall experience a customer gets at your cart.
maybe a Haute Dog?
NICE! Fact is, people that can afford those toys also enjoy hot dogs!
Right on!
Steve,
Totally agree. We charge $3.50 for our specialty hot dogs and I think people would pay more. When you factor in your time and expense with top flight ingredients you really want to get what the market will bear for each one. Premium product, premium price.
Indeed. Good job Sam!
I will not race to the bottom of the price spectrum.
My new menu I am going to try will start with a basic hot dog and add extras on that can raise the price to $5.
10% – 20% of the customers will order at the high end.
Customers that shop for the lowest price will not be loyal.
Rich
Competing on price will give you an ulcer.
Nice website!
I charge $3.50 for my grilled quarter pound all beef dog and have no problem selling them. I get $4.00 for my grilled quarter pound red hot dogs. No dirty water dogs here..
Nice!
Steve…Please believe this truly unbelievable but true story. I worked outside the front door of a strip club (bar) during the wee nitely hours, 9 pm till 3 am 7 days a week for about 2 years. During that time I offered a Swanky Frank for $20. I would chop at home a variety of different veggies and cheeses, sauces from international hot to “this looks different” and out of the can. Everyday it was something different just short of gourmet. I found out that the atm machine inside only gave out 20 dollar bills, and all you have to do is sell a couple a nite to make your nite. Truly men and women would see the signage for the Swanky Frank and see the price of $20 and they would say well that must be good and order one. Only once did I have a customer buy 3 in one nite.
joe
I believe it. Those folks were already in heavy spend mode by the time they got to your cart. But it wouldn’t have worked if you weren’t offering something unique. Good job!
Steve ,
What brand (gourment ) hotdog do you recommend
Thanks Kris
Vienna beef!
Any quality all beef dog is a good base to build a gourmet dog on.
Hi Steve have a look at the price of hot dogs on this menu at Dougie Dog $5.50 to $100.00 each.
Bob
OMD!
err, oh my dog.
There you go. Thanks Bob!
That makes a good selling point if someone were to question your prices.
No one questions the price if they believe they are getting an equal amount of value.
Your right….
I sell Boar’s Head 7-1, All Beef, NC dogs. I pick up fresh bakery rolls daily (a “brat” bun). My 2-specialty dogs are a “Chicago Style” and a “Door County Coney” with chili (no beans) made from 100% Ground Chuck and a sweet red pepper sauce. I am entering my 4th year come April. I have held the prices at $3.25 but I’m flirting with bumping them .25 cents this season. The bulk of my customers are locals and while I live in an area dependent upon tourism 54% of these locals live UNDER the poverty level. My cost for these 2- is approx. $1.06. I sell a regular dog for $2.75 and am thinking the same .25 cent increase for it. Any thoughts?? My thanks in advance.
Sounds about right. The local demographic does have an effect on spending habits. Sounds like you’re doing great Fred. Congrats!
My most expensive dog is $6.50. The least is $3.00. I have three in between. I sell them all day long. The quality matches the price.
“The quality matches the price.”
That’s key. Thanks for commenting Merritt!
You’re absolutely right Steve, and since I’m starting to introduce more than “just a dog” I will be increasing my prices to reflect the fact that they aren’t getting a hot dog, they are getting an experience!! It pays to be different and to be able to offer something new and exotic! Just like the Hawaiian and the Sonoran Dogs which I sold last week, people who are adventurous will want to try it at least once and it never fails, they always come back for more!! These dogs will fetch a good price and I won’t feel too bad about it because I know that people will pay for an awesome product. Thanks for posting this story.
Hola mi hermano!
Never ever feel bad about charging more for a quality product.
Each dollar you earn is a certificate of appreciation bestowed upon you for providing a great product or service.
If the customer doesn’t feel that your product is worth more to them than the money they have to trade for it then you won’t make any money.
No one is holding a gun to the customer’s head. They are the ones who control the flow of these certificates.
You should feel honored to be so appreciated.
Thank you Steve…thank you! Finally someone said it!
Thanks ladies! Heading for Cedarburg soon?
I have had no problem getting people to buy a really good, top quality dog. Hot Dogs have been given a bad rap over the years. So people do like a really good quality, and great tasting dog. It really helps to have a really good in-expensive dog as a back up. Our new selling slogan reflects this. “HOT DIGGIDY DOGS ARE HOT DIGGIDY GOOD !”
Blessings everyone
Chappy
Hot Diggidy Dog
Great slogan Chappy!
Blessings to you too – Glad you’re feeling better.
Last season I hesitated to raise all my dog only and meal prices all .25 across the board. It didn’t affect my business at all and I plan another increase this season. Like you say Steve, you can price yourself out of business by being too LOW.
Pricing too low is the biggest mistake I see new doggers make. It’s also the number one reason for failure.
It’s a sneaky problem because pricing low feels good. It soothes the fear we all have about not being able to sell enough product. It’s the easy answer. Too bad it’s the wrong one.
The truth is that you CAN sell just as much at higher prices as long as your total customer experience is excellent.
GREAT comment Larry.
Charge em up! I don’t sell dogs yet ,however I have been in sales for years +. My buddy and I were working a show selling cutlery,,Mike my pal had a collector knife he was sitting on for ages price $30. I traded him out of it and he thought he I was the proud owner of a dead product…Not so fast there everyone,,A collector I thought needs to show value I priced the knife at $120.00 .That’s right 120 bucks…I owned it about 20 minutes…Had a offer of $90 dollars I told him he was just 10 bucks away from takeing this fine piece if cutlery home and he took it for $100 smackers…That’s Right one hundred bucks…Mike didn’t add enough value to it..I did,and the cutsomer seen it…
that is customer physc…….I have done this too many times to say it is a fluke,,it works,always go up first before discounting,,,,,Remember this “Good things arn’t cheep and Cheep things are seldom ever good”… and you can use that for a closing line too.
quality sells in America
Luke
You’re all over it Luke.
Pure awesome sauce.
cheep cheep?
mmm chicken dogs
hey steve..first off love your biz & page been meaning to drop you a email for the last few years.you know how it is time flys .my name brig Gabriel my biz rockin dogs & ice cream from Teton valley Idaho just 18 ml over the pass from Jackson hole Wyoming we work on both sides of the pass we have cart and we have a stand in driggs lots of imfo sorry.not the best e mailer.we live in magical place and awesome setting a my stand is in a rental & lumber yard..i have the only cart for in both towns…so it great how ever you can a see how hard it is to get product being in the mt.west I use a u.s foods & sams my sams 80ml one way if the weather is cool..gas works in to my cost my specialty dogs are all viennas as you know the only way to go throw Vienna or sabrett is to order 1000 lb so my long point is don’t sell are selfs sort my cients love are dogs that rang from 3.50 kids dogs to are cowboy dog for8.50.with no complantes any way sorry for my bad email form..ha.ha. check us out on face book a rockin dogs and ice cream in Teton valley ID.wy…
p.s we use your Cash Tracker and we love it. along with the other products we bought so keep up the great work..steve
brig.
Awesome comment Brig! You are doing great up there in paradise. Beautiful country.
Glad you like your Cash Tracker bookkeeping software for hot doggers. It’s nice not to have to keep your books anymore isn’t it? I always hated that part of the business. That’s why I developed the software. It’s a sanity saver if I do say so myself.
What’s on your Cowboy Dog that you get $8.50 for? Sounds great!
forgot to add would “you like extra relish with that??”
LOL!
I will be bumping the price of my grilled all beef dogs from $ 1.50 to $ 2.00 ! That’s just with your favorite condiments,
Go higher Dude. But do it in increments over time. If you customers are used to a certain price you don’t want to sticker shock them.
As you increase you prices also increase your offerings. The customer needs to see that they are getting more for the price increase.
Hi Steve. I truly agree. Here in Australia your looking at 5 dollars for a plain hot dog and with quality toppings 7.50 .people will return if its a good product, you must put love into it, only use the best produce and don’t cut corners . keep the cart super clean and no bad odors coming from it.only then people will tip you with a smile. Thank you Steve that was so cool..kind regards Jules..
Thanks mate. I sell a lot of my training materials to folks in Australia. The only problem was unreliable shipping. Now with our HDP Premium Membership that problem is solved.
Great comment!
Let me know if you need any help Jules.
that definitely puts into perspective now doesn’t it:)
Sometimes we all need a little perspective, right?
Thanks Tracy!
You left out the price of gas..now a luxury
Right on Hank. That’s a fact.
With the price of meat going up getting a hot dog is going to seem quite the bargain at $4.00. I can’t go out to lunch with my wife without spending $25.-$30. Great business to be in during a recession.
Truly recession proof. Folks gotta eat.
Now if I could just get a license to sell liquor and tobacco from my cart I would have all the recession proof sectors in one location.
I’m in total agreement. Let me start by saying that in about 3 1/2 years of study, I’ve done the research. There is lots of info out there but my findings were that the average american spends about $8 a day going out for LUNCH! There are many statistics and surveys out there to back this up but I’ve found my home town to be my best resource. When I’m driving during lunch I Always look at resteraunt parking lots and drive thrus. I often note the time of day I see pizza and chinese delivery vehicles as well. Consider this – you eat out…doesn’t everyone at some point?….LOOK AT THE MENU. While I’m sure take out food prices vary, I’m also sure that most Any combo meal is $6+. I worked in a resteraunt in a small town of 3,300 people. Everyday I saw about 240 people roll thru for lunch. What is our average lunch price? $9.10! In a half a decade I heard less than a handfull of people question the price (you can’t please everybody). I’ll attach an ABC link below from 2011. In 2011 Americans spent an average of $7.40 per day on lunch. Now, pop $1.00, chips $1.75 and with Americans spending an average of $7.40 for lunch; that leaves…….thats right slingers..$4.65 for a gourmet hot dog. Now go make that cash.
P.S.
While I researched many things on the web, I Cannot express the wealth of knowledge that I received about this business from Steves’ book Carts of Cash. I probably spent two years studying that I would not have needed to if I would have ordered this book sooner.
Good Luck Slingers,
Scooby of Zay Zay’s
Thanks Scoob. That’s some in depth price research – great job!
Glad you like my book and thanks for the many pics you sent of your E-Z Built Hot Dog Cart during your build.
(Scoob came up with an awesome folding side shelf that’s super easy to make. I’ll be posting the how-to over at HDP Premium sometime soon.)
I sell a vienna dog 8-1 comes in a case of eighty for 48 bucks then a case of poppy seed buns for 28. All dawgs get the same bun and whatever they want on it for 5 bucks that includes soda and chips. I don’t believe in overcharging just to do it. good product, good prices, more customers.
True Skyline. If you are charging more then you better be giving the customer an equivalent amount of value.
48 dollars a case?
you should shop at restaurant depot.
a caase of 8 to 1 here is about 42 dollars a case.
I forget how much thier buns are thou.
then you also need thier condiments aned stuff too.
last year any dog any style…… from a chi-town to a bacon dog…..$3.50. This year 4 price points…. $3.00 for about 5 different dogs… (kraut)…. $4.00 for a deluxe style… (chi-town, chili-cheese)… $5.00 for a bacon wrapped dog… (mexican, b-bbq, frisco)… and $10 for ‘The M-Fer’… this bacon wrapped dog is served in a nacho boat with everything on it… I stab it with a spork and throw a rolaid on it….. we are talking about 10+/- sauces and about 10 different toppings cold….. dont forget the chili, cheese, kraut, grilled onions and peppers……… yummy….. I will be opening back up soon……
“I stab it with a spork and throw a rolaid on it.”
PAY ATTENTION TO WHAT HOT DOG EDDY JUST SAID. He truly gets it.
This is a perfect example of what I always say, “Don’t sell a hot dog. Sell an experience”.
Do you think Hot Dog Eddy’s customers are going to talk about the M-Fer with the rolaid on the spork to EVERYONE they know?
Damn right they will.
Be careful when naming your creations. I do a lot of church and youth group gigs so serving an “M-Fer” wouldn’t go over too well with my clientele but in other markets it’s sure going to be an attention getter.
Freakin’ awesome comment Hot Dog Eddy! Thank you.
Wow. That’s a dang big hot dog.
Thanks Steve,
My husband and I have been going back and fourth over prices for this season. Between him and our Mayor saying I need to increase prices I guess….
“THEY WIN” I sell 1/4LB all beef nathan’s between $3.00-$3.50 Combos $5.00 on a Gourmet cart THE MEN ARE RIGHT (yes I admit it this time) I can’t believe I said it…
I have picture menu’s people LOVE that “You EAT with your EYES” ANd they comment my dogs look just like the pictures AWESOME!!!!!!PICTURE PERFECT every time plus I rock out with my PowereBox Radio……
Listen to the Mayor 😉
Send me pics of your menu, I’d love to see it!
My “Plain Ole Dawg” is just a weenie and bun and they get that for 1.89, no sides, no fries. My Reuben Dog is 3.79 with swiss cheese, kraut and 1000 island dressing on the top. I sell them all day long, every day! I am adding a Sonoran Dog and a Chicago Dog when spring hits and people are more in the mood for veggies. God Bless all of you slingers! Dixie!
Sounds delicious Wanda!