MyConcessionBusiness.com

Posts Tagged ‘money’

Hi Everyone,

I wanted to share with you an email that I received from one of our blog readers...  I am posting it here with his permission.  I think our readers will gain a lot from his experience in the field.   It is a lenghtly, informative email so I am going to break it down into 3 or 4 sections posted in 3 or 4 days.  Hope you enjoy.  Below is discusses how he got started and a little advice for setting up your trailer.   A lot of people reading this blog are interesting in selling the donuts concession style, for example at flea markets and the like.   If you are interested in doing that,  there is a great website that will basically "hold your hand" and teach you the ropes in explicit detail,  head on over to:

Concession Trailer Business

I don't do a lot of promotion of the site, except in the forums I've added a banner.. but it truly is a good resource.   Here is Part 1 of the email,  thanks again Dave for your excellent advice!  I have found (and as I have told Dave) that people in the concession business are so secretive with their information so this is a rare glimpse in someone that is actually walking the walk.

  Starting a concession business with multiple owners is a fairly common occurrence. There are many advantages to doing so however, it can also lead to serious complication with time if you do not have a clear cut, drawn out agreement of business goals and each owner's responsibilities.

 When you dig to the root, a concession business is just the brilliant idea of a person or people who want to become self employed and make money.

 The idea of starting a concession business with multiple owners is a fantastic one but when a problem does arise, it can lead to disaster. The biggest conflict that multiple owners have is over power, especially if the business is successful.

 If you start a business with someone whether they are a family member or your best friend, you have to write in detail, who is responsible for what, hours that will be worked, goals of where you want the business to grow to, etc. Without these, you could ultimately have one person doing the large percentage of the work and feeling resentful which not only causes problems in the business but also in your friendship.

 You should also take the time to discuss what happens to the business if someone doesn't hold up their end of the job or decides that they want to venture off on their own in a different direction. How will issues be handled? This all needs to be put in writing. You may feel a bit uncomfortable discussing such matters since you do not want to hurt each others feeling and there is a certain level of trust obviously already there however, owning a business needs to be handled like a marriage with a prenuptial agreement to protect everyone that is involved.

 Starting a concession business with multiple owners is common and usually successful. It certainly helps to have a shared workload but to avoid any future problems, be sure that everyone is on the identical page from the beginning and put in in writing.

The concession stand market is a growing business in this defunct economy. One of the most reliable concepts is that concessions never lose their novelty; this is the case for stands which sell food (items which are always in demand) and also for souvenirs (which are readily in demand at areas such as ballparks and sports stadiums). With hundreds and even thousands of people going into and coming out of sporting events and public venues, the concession stand business becomes a cash cow in which high volumes of traffic – and money – exchange hands from them to you.

A particular concession stand, such a a simple hot dog wagon, can yield amazing profits in a short amount of time. Consider the costs of running such a stand: the stand itself, even one of the cheapest ones, runs about at about only $2,000-$3,000 (used) or twice that price ($4k-$6k) for new models. Take into account the costs of materials (at the most, you'll spend about $100 in materials such as hot dogs, buns, condiments, and even pre-packaged chips and canned or bottled drinks). With only a $100 investment in materials, you can make over triple that amount in only one day's worth of sales, if packaged correctly. Putting together a meal (hot dog with fix-ins, chips, and drink) can justify a price of $3.00-$5.00; even if you decide to be generous and sell for cheaper than this, you will still come out with money in your pocket to cover expenses and pocket the rest. Think about this: the cost to make a hot dog is about $0.17 for the dog, $0.10 for the bun, and less than $0.05 for condiments; add chips ($0.40 per bag) and a drink ($0.25), and you've got yourself a total cost of $0.97 for the meal! At a $3.00 price point, you're making just over $2 in profit per sale!

Location is the key to your success. Placing a concession stand at a location known for its traffic, and also providing convenience in an area where food or drink is not readily accessible, provides you the opportunity to rake in the cash. Think beaches during the summer, or even just outside schools. Target those who are looking for a quick bite to eat on the fly – these will be your constant influx of revenue. Imagine school's out, it's a nice summer day. No one is at home, everyone's at the beach enjoying the surf, sun, and sand. Swimming sure does work up an appetite – make sure to provide your service to them, because they'll be dying to have one of your meals. And if it is something as simple as a hand-held hot dog, they'll likely buy more than one meal throughout the day! Repeat customers in a highly saturated location; you're bound to make huge amounts of money in little time, and with very little investment. In only a few short months, maybe even weeks (if you're truly motivated), you'll have made back the money you put down for your cart, and will have established a strong customer base with your continued presence at these locations.

Concessions are probably the best way to make money in this tough economy, as you're able to reap the benefits of a cost-effective business model, along with high volumes of customers, in a time when people want – nay, need – your product. Just provide the service, and the product will sell itself! Good luck in your future money making!