$7 Dollar Hot Dogs – Sounds Cheap
When compared to $1501 or the latest craze… $38 hot dog water (with a hot dog inside) – then a $7 dollar dog doesn't sound that bad.
BUT WHAT IF YOU CUSTOMERS ARE USED TO $2 AND $3 HOT DOGS?
Will folks pay more for the same thing? Yes & No.
There are several variables that come into play though. Odds are if you're in a low economic area and your base of customers can't afford it – then there's no way adding lipstick to the pig is going to get you more money.
In fact – you could lose business and not just because they can't afford it – but because they now see you as some “gourmet” [read: fancy pants] place and they just aren't about “all that”.
HOWEVER – if you're customer base is mixed or primarily folks with more money – then by all means.
THIS DOESN'T MEAN YOU CAN JUST
…raise your prices and quadruple your current profit margins. Nope! This requires some effort. However easy – it's still effort.
Recently my old Toyota Tacoma died. Actually the transmission went out. I made an impulse decision [read: idiotic] and Uber'd to a local Nissan dealership. (it was the closest and I was out of town)
I purchased a Nissan Titan.
Now the truth is… any Titan would do it. Any would pull my loaded trailer home. But the bells and whistles – they got me. So I did what human nature demands and got the most for what I could afford.
A stupid move on my part and far harder to stomach [read: buyers remorse] than a $7 dollar hot dog. However – I really do love all the cameras and heated and cooled seats. It's a sexy beast of a truck.
BECAUSE I CAN
Do you get the regular Hardee's burger or bonus up and get the newest latest greatest super burger they're touting? Arby's restaurants have made a fortune after introducing those new “artisan” sandwiches. They charge more and it costs them very little difference between the normal Arby's® Roast Beef.
HOW DOES THIS HELP YOU?
If you have the right crowd, then adding a little lipstick to that pig – will make you more. Here's what I mean…
Looks to me like some brown craft paper and twine – a total of .15¢ or less – and you've now got a $7.00 hot dog!
Sometimes it's the smallest things – that command a higher price.
Above are Japanese Fusion type hot dogs. Regardless they taste – they look delicious. We first eat with our eyes and if the eyes say that the hot dog looks worth $20, then the wallet won't have any problem paying $7 or more.
As you can see here…
They used a bun that cost them a tiny bit more and they didn't just slop the ingredients on it. Instead they created a little piece of mouth art. An effort that took a few extra seconds will net them 4 to 5 dollars more.
We've seen vendors add craft wrap like this…
With no change to their product, just simply a craft wrap bag and begin getting more money (all profit) from their menu.
Not necessarily menu changes or the use of gold saffron – you can just present your hot dogs differently.
When the food looks better – it tastes better and those result in more profits and the added benefits of word of mouth advertising.
It's a win – win.
THE BOTTOM LINE
If you are set up in locations where you can present beautiful hot dogs – then why not.
If you're worried – try adding one menu item – one special hot dog that is your signature hot dog. One that you can get $7 and more for. One that means increasing your profits by 6 fold. And of course – keep your current menu going.
We share tips and more with vendors every day on our Vendors United private pages. If you're vending or thinking about it – you'd be wise to check out Vendors United.
Imagine – 200+ vendors helping each other live – every single day.