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Vending Question about fees

 
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hedgehog



Joined: 04 Nov 2008
Posts: 16

PostPosted: Mon Feb 02 09 9:10 pm    Post subject: Vending Question about fees Reply with quote

One of the farmers markets we work has a really nice venue to entertain with a stage set up, etc. The facility opened up just this past August and has just been a farmers market to this point. They are expanding the usage now to have some Friday night concerts (with top local bands). We have been asked to vend at these events, which we really want to do. The market coordinator is trying to figure out a fair way to get revenue from the vendors to help with the cost of the concerts. Any additional revenue generated will go into advertising the events along with the farmers markets. Initially they talked about using tickets and the vendors would get 70% and the market would collect 30%, no cost for setting up. Initially we figured to increase our pricing to cover the additional overhead, but some other market vendors complained, that they didn't think it was fair. So my question is what is your experience in these type of venues? Flat fee, percentage (what was the percentage), combination of both. Appreciate any feedback.
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BBQMAN
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PostPosted: Mon Feb 02 09 10:27 pm    Post subject: Reply with quote

A 10'x10' vendor booth is $45.00 at the market we attend for the day (I pay for two).

A percentage draw only works if both the vendor and sponsor are honest, and of course the food ticket thing assures that.

However, 30% is way steep IMHO.

15% is the norm in my area.

I prefer the flat fee unless it's a vending event that I am not familiar with. In those cases, if the event has a poor draw at least you are not out any fee money.

Most fresh markets that I know of operate on a non-profit basis, taking in fees to cover general operating expenses only.

Good luck with your market!
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Jerk Pit Master
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PostPosted: Mon Feb 02 09 10:31 pm    Post subject: Reply with quote

Other variables to consider. What's the projected attendance? Do they charge admission? How much?

Under any circumstance 30% is too much. The only time 30% is even worth considering is for a proven, well promoted annual event with almost guaranteed attendance.

With a new event, I do think a percentage of 10% or a nominal flat fee is the fairest wasy to start.
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Jerk Pit Master
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PostPosted: Mon Feb 02 09 10:36 pm    Post subject: Reply with quote

The fee at my new unestablished market is $15, but I'd gladly pay $45 for a market like BBQMAN's.

For those doing parking lot vending, you should use local farmers' and flea market fees as a benchmark on what your higest daily rent should be. Some property owners will come up with crazy numbers.
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Texman
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PostPosted: Mon Feb 02 09 11:17 pm    Post subject: Re: Vending Question about fees Reply with quote

hedgehog wrote:
Initially they talked about using tickets and the vendors would get 70% and the market would collect 30%, no cost for setting up. So my question is what is your experience in these type of venues?


Unless you have a captive audience, wherein you increase price to offset the 30%, it will probably be a tough go.

Texas is big in Stock Shows combined with Rodeos (Houston, San Antonio, Ft. Worth etc “captive audience”). The food at these places is extremely high. Reason: Vendors, San Antonio as an example, must pay 45% of gross to the Stock Show/Rodeo Association, which funds generated is used to give scholarships, a worthwhile cause.
Surprisingly, these shows do not have much vendor turnover.
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PapioQ2B



Joined: 20 Jan 2009
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PostPosted: Fri Feb 06 09 6:56 am    Post subject: Re: Vending Question about fees Reply with quote

We have the same thing here in Omaha for 2 weeks when the NCAA College World Series comes to town. The city charges a hefty fee for vending booths but you can easily make it back because you have 2 games per day with 15k to 24k people per game.
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hedgehog



Joined: 04 Nov 2008
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PostPosted: Fri Feb 06 09 11:54 am    Post subject: Reply with quote

Appreciate the responses. We had a meeting the event coordinator and we are waiting to find out what the final percentage will be, but it will be less than 30% (there take). More importantly we will be the only ones doing BBQ and burgers, so I don't have to worry about being undercut by someone doing pulled pork sammies from a crock pot.
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valleypigs
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PostPosted: Sat Feb 07 09 4:42 am    Post subject: Reply with quote

Quote:
so I don't have to worry about being undercut by someone doing pulled pork sammies from a crock pot.


Only if the organizer is honest and makes everyone else be honest. I have been to fairs where the promoter told me I was the only one doing BBQ...until I set up and have the local fire hall selling from an open grill and the boy scotts selling from a crock pot and another vendor selling the slop he got in a 5 gallon bucket. It is hard to compete against the "charity" type vendors as they use donated supplies so they can cahrge $2 for a sandwhich and still make $1.

And if you confront the promoter, you make yourself look like an a$$ because you are complaining about the boy scouts or the volunteer fire dept.

Just be sure you can trust the organizer and that truly no others will be selling BBQ or burgers.

Either way, figure on about 10% of the buying public will buy from you. And it is REALLY difficult to know what that number is unless it is an established event. And in this economy, those numbers will likely go down
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marvsbbq
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PostPosted: Sat Feb 07 09 12:07 pm    Post subject: Reply with quote

valleypigs wrote:
Quote:
so I don't have to worry about being undercut by someone doing pulled pork sammies from a crock pot.


Only if the organizer is honest and makes everyone else be honest. I have been to fairs where the promoter told me I was the only one doing BBQ...until I set up and have the local fire hall selling from an open grill and the boy scotts selling from a crock pot and another vendor selling the slop he got in a 5 gallon bucket. It is hard to compete against the "charity" type vendors as they use donated supplies so they can cahrge $2 for a sandwhich and still make $1.

And if you confront the promoter, you make yourself look like an a$$ because you are complaining about the boy scouts or the volunteer fire dept.

Just be sure you can trust the organizer and that truly no others will be selling BBQ or burgers.

Either way, figure on about 10% of the buying public will buy from you. And it is REALLY difficult to know what that number is unless it is an established event. And in this economy, those numbers will likely go down


I would not do events that allowed "charity" vendors just for this simple reason you mentioned.

Also, to figure 10% of the buying public would buy from you....dosen't that also depend on how many other food vendors are at the same event??

10% would be a good number of sales....say an event had a gate count of 10,000 that would be 1000 buying your food??? Have you found this to be pretty consistant number at the events you have vended at???
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BBQMAN
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PostPosted: Sat Feb 07 09 6:56 pm    Post subject: Reply with quote

All good points Valley. Been there, done that!

Our market draws 8,000-10,000 now on a good day (today will be one of them with 70' weather and not much else going on in town except Gasparilla in Tampa).

We are a well known long time vendor with a very dedicated fan base.

There are about 2 dozen total food vendors, with one other guy selling pork sammies and turkey legs (NASTY).

On average we feed 250-350 people in a 4 hour period.

YMMV (not really, your milage WILL vary).
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marvsbbq
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PostPosted: Sun Feb 08 09 12:29 am    Post subject: Reply with quote

Good sale Mike....30% of the visitors eating from your Barbecue. Most vendors would be happy with 10% of those 10,000 visitors.

Goes to show that you are well known and provide quality food(s).

Just think now, if you had your own restaruant (with that following), you could do that SEVEN days a week... Wink Wink
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Texman
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PostPosted: Sun Feb 08 09 12:32 am    Post subject: Reply with quote

Almost all of the events we attend have “Charity” vendors, such as Scouts, Lions Club, Rotary, Elks and Churches, but no duplication of product.

Some of these vending charities sell by donation only, while others have an established price at market value, maybe a little less, or even a little higher.

Initially, we took, and continue to take a little different approach with these vending charities. We cultivated friendships, by walking over introducing ourselves, and then buying their product and leaving a free rack of ribs….just a hair before the lunch run starts. Neat exposure for potential new customers - seeing others eating our ribs. Now we continue to buy their products, as they do ours and occasionally we’ll give away ribs, especially to the Scouts. Handling charities this way shinned a positive light and also generated more business for all of us.

We agree with Valleypigs on the 10% rule, regardless of the number of food vendors, but at a new event it does require some drawing in of customers with samples. Once established at an event this 10% can be substantially higher.
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hedgehog



Joined: 04 Nov 2008
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PostPosted: Sun Feb 08 09 11:52 am    Post subject: Reply with quote

At least at this event the "non-profit" folks will only be selling soft drinks and beer. We can still sell our sweet tea but they will handle all the other drinks. My reference to the pork in the crock pot actually happened to us on the grand opening of the market. They brought it out for a couple of weeks and every time had more left over to bring home, till they decided to stop bringing it. Although its a couple of months off - we now hoping for good weather.
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Bluegrass BBQ
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PostPosted: Sun Feb 08 09 12:10 pm    Post subject: Reply with quote

Did I read right Mike got 250-350 out of 8,000 to 10,000? That is about 3 to 3.5%. this more in the ball park of what I figure 3 to 5%. Is my math right?
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BBQMAN
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PostPosted: Sun Feb 08 09 7:14 pm    Post subject: Reply with quote

Bluegrass BBQ wrote:
Did I read right Mike got 250-350 out of 8,000 to 10,000? That is about 3 to 3.5%. this more in the ball park of what I figure 3 to 5%. Is my math right?


Yes it is Jim!
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marvsbbq
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PostPosted: Mon Feb 09 09 1:52 am    Post subject: Reply with quote

BBQMAN wrote:
Bluegrass BBQ wrote:
Did I read right Mike got 250-350 out of 8,000 to 10,000? That is about 3 to 3.5%. this more in the ball park of what I figure 3 to 5%. Is my math right?


Yes it is Jim!


Sorry Mike....I said 30% instead of the correct number of 3%. I SHOULD have corrected my math before I posted... Embarassed Embarassed
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