A few nights ago, I was walking with a few friends of mine in downtown Austin and after a night of beers and talking a ton of bulls%*t, we headed home.
On the way the guys spotted a dog vendor on the corner at 11:30 at night. He saw us look and shouted, “Come get a hot dog, I’m just taking ‘em out”
We all laughed and said we were on the way home. His reply was genius…: “Ok, big fella, come get one for FREE for the ride”.
I couldn’t help myself! He hooked me up with a “Chicago” and it was great. I ate two more and all the guys got 2 or 3.
Bottom line: one free .50 dog made this savvy vendor a 5 minute $24. After a chat about what I do, he told me that he has been at the same spot by 3 popular bars in Austin for 5 years.
He only works 8-12 three nights a week and banks a cool $800 - $1000 a week. On top of his full time job as “get this”, a registered nurse.
So what should you take from this story? Well, 1st - my nurse buddy didn’t quit his job, 2nd - he always has fun at work and 3rd - outside your favorite bars might be a great place for your stand.
The really big secret here was the FREE dog. By the way, he says he gets back an average $10 for every FREE dog he gives away. Crazy like a fox.
Before you go out and pay a ton of money for a place to set up you hot dog cart you should really
consider bartered or simply free locations.
Here are a few:
Construction sites (my favorite)
These are usually free and you can make your entire days profits in just 2 hours a day or so.
Warehouse and factory parking lots.
Most factory bosses and warehouse owners will let you set up on their property once you explain the benefit that their employees who eat with you stay at work and have no excuse for returning late.
In office delivery.
Don’t have a cart yet? Just make up your dogs, wrap them in foil, place them in a cooler and hit the biggest office building in town.
This is a great way to start even if you’re flat broke.
I hope these few tips help. There are tons of great locations that work that you may never think of.
This is the difference between the men and the boys in the hot dog business. Mc Donald’s didn’t invent “Supersize Me” just for fun. This one tactic almost doubled their profits overnight.
Why?
Because there are really only three ways to build any business.
#1 Attract more customers - This is the one everybody concentrates on. It’s the most difficult of the lot and the most expensive.
#2 Increase customers frequency of purchase. Now we are talking. Loyalty programs, free samples and coupons work wonders. FACT: A customer who has bought a hot dog from you once (assuming it was a good experience) is 10 times more likely to purchase again than a normal passer by.
#3 Increase the volume of each transaction. Up sells! If the customer only ask for a hot dog for $1.50 you make $1.00 or so times 75 customers a day =$75 or minimum wage.
Here are just a few absolute winners…
Would you like a second dog for just .99?
Do you want the combo? Hot dog, chips and a soda only $3.95?
Oh but the way did you want a cookie for desert, their only a dollar?
Just these few could instantly double or triple your daily profits and it cost you NOTHING to try.
We have over 10 up sells that work like a charm boosting your average profit per customer to $3.50 each NET! So the same 75 customers earns you a cool $262 a day or about $90K a year.
Up sell ideas are endless… Make an irresistible offer and they cant refuse.
Next lesson… Bringing them back for more - How to get repeat customers
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