It sounds great at first, how could doubling your expected volume hurt you? Well, when you've contracted to provide hot dogs and more than double the people show up and you lose money.
But have no fear, Michael Wood of Duggs Doggs is here! Michael takes the opportunity to show his customers appreciation and while at it increases is ongoing customer base. Rather than losing money, Michael just made a fantastic investment. Here's his letter:
Ben, I was just sitting here and thought about this:I contracted a special event with my local bank to do a customer appreciation day, well really it is 3 days. The bank wanted to do the event for a fixed amount and because they (the bank) does a large amount of business with me and helps me in other ways I accepted the gig. I made an agreement with them to only have Coke, Diet Coke, and Water for the drinks, Plain Lays Chips and Hotdogs with only mustard, ketchup, relish and onions available(KISS) keep it simple stupid, the event was set for 11:00 am to 2:00 pm (I normally operate (10 to 2) one day was a Monday, Friday and the last day is a Wednesday. The event was at the local banks drive through at the bank main branch (in the back)(figured less traffic; Wrong). The bank also provided the girls to waite on the customers (really nice to look at too). Also I set up my cart in the front of the bank at no cost anytime that I wish and they provide me with electric if needed for free, they send out an emails to everyone in town to tell them that I am there.Well in taking the gig I figured that my food cost would lower than normal, no waste, all I have to do is setup, cook and dress the hotdogs, tare down, and I also figured that I would do about 100 dogs per day so I took twice that amount.Wrong, I have exceeded my estimate already for all three days and still have one day to go. Well I guess this last day will be one me (lol).I sat around and drove my wife crazy taking about how far off I was in my quote then it hit me. I did this event for the bank but about 50% of the people that came up for the bank event are also my customers so what I did was a customer apprecipation for my customers too and the ones that are not my customers got to enjoy my food so they will come back to my cart at other events, free advertising. I normal use the standard of 3xfoodcost to figure my prices plus a little rounding up but I guess for this event I will have to figure 2xfoodcost plus a little rounding up for the prices.I say all of this to say, keep it positive, yes you will make mistakes, yes you will do events or days that you don't make as much as you think you should. I am currently running about 9.97% above what I did last year for the same period (even with this small error); yes, track what you do; Always remember KISS and make it fun…Michael S. Wood