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Old 02-20-2009, 07:54 PM   #11
Radar
Constitutional Scholar
 
Join Date: Dec 2002
Location: Ocala, FL
Posts: 4,006
Quote:
Originally Posted by Clodfobble View Post
A move out of California to an area with a lower cost of living is a solid idea. I'm less convinced the hot dog cart will bring in the money you think it will.

Let's see if I can convince you. Even an average place on the street will sell at least 100 dogs a day. If you make a deal where people can throw in a drink and chips for $5 (Jumbo or Spicy Dog) or $4.50 (Regular Dog). I'd charge $4.25 for a Jumbo or Spicy Dog by itself and a $3.25 for a regular dog by itself.

Let's look at costs.

Hot Dog - $.35 for regular $65 for jumbo or spicy
Bun - $.20
Condiments - $.15
Drink - $.27
Chips - $.20
==============

Total Costs for Jumbo Combo = $1.47 for a profit of $3.53

Total Costs for a Jumbo Dog = $1.00 for a profit of $3.25

Total Costs for Regular Combo = $1.17 for a profit of $3.33

Total Costs for a Regular Dog = $.70 for a profit of $2.55

Since we are worst casing this, let's say from the 100 dogs sold 50% got the combo and the rest got only the dog. Odds are it would be more than that, but we'll use that.

Let's also say that only half of the people who got dogs got the jumbo dog and the others got the regular dog.

25 x $2.55 (regular dog w/ no combo) = $63.75

25 x $3.33 (regular dog combo) = $83.25

25 x $3.25 (jumbo/spicy w/ no combo) = $81.25

25 x $3.53 (jumbo/spicy combo) = $88.25

====================================
Total Profits Per Day = $316.50
x 6 days a week = $1,899.00 per week

Let's say we take off $99 per week for other costs (napkins, propane, etc.)

This makes $1,800 per week.

If you take a month off for bad weather, days off for doctor's appointments, or other stuff....

This is $85,800 per year.

If I do some special events like high school football games, farmer's markets, etc. I'll sell a lot more than 100 per day, but hopefully this will convince you.
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