Prices

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CoyoteBlues
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Prices

Postby CoyoteBlues » Wed Jan 24, 2007 9:20 am

Ok...guys...I am thinkin about getting into the small time bbq business...just lunches for various business around town...nothing real big ...just call me up and see what I got cookin and I'll make ya a plate...kinda thing....

But...

How do you set prices for the meats and sides???

Anyone on here doing the bbq buisness thing??
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Re: Prices

Postby DATsBBQ » Wed Jan 24, 2007 9:52 am

CoyoteBlues wrote:Ok...guys...I am thinkin about getting into the small time bbq business...just lunches for various business around town...nothing real big ...just call me up and see what I got cookin and I'll make ya a plate...kinda thing....

But...

How do you set prices for the meats and sides???

Anyone on here doing the bbq buisness thing??


I've looking into doing this also. Don't mean to scare you but I came to this conclusion early on.

One of the biggest factors concerning pricing is overhead. One of the biggest factors determining overhead is if you plan to operate in the open or under the table. Depending upon your local & state laws, you will need a food service license and a sales tax license. Other costs to expect include liability insurance, website design & hosting, advertising, equipment, workers comp if you hire employees, trademarking your name, setting up your business enitity with the state (LLC, Corporation?) and a whole bunch more. Under the table you avoid these costs but could end up in trouble with various gov agencies and should something go very wrong and you get sued, you could lose all your personal assets.

If it's something you want to do, do it :D
Deputy Dave

“A wise man can learn more from a foolish question than a fool can learn from a wise answer."-Bruce Lee
CoyoteBlues
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Postby CoyoteBlues » Wed Jan 24, 2007 10:28 am

Yep...I have checked into the politics of it all...and I could not do it under the table...so I understand that perspective of it all...I was just talkin about a situation like:

the breakdown of how to charge for the food...sorry I didn't make all that clear :oops:

Lets make it simple...I cook 1 brisket and a butt...then I have 10 lbs of tater salad and al the ingrediants to make it and then there will be beans and slaw and buttermilk pie or banana puddin ...how do I figure what each plate would cost???

Add up what what each item cost per person and then multipy that by what it takes to make a profit???...looks like just starting out and I added what it cost to pay for all the politic correctness...a plate could cost alot of money :wink: :cry:

I guess I am looking for a easy formula :lol:
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Postby Dallas » Wed Jan 24, 2007 12:34 pm

Hey Coyote,

I don't want to come off tail a smart tail here but I'd like to say that you don't set the prices the market does. Got a couple of questions for you.

What kind of competition do you have in your market. What does a price of a brisket sandwich go for. Lunch is definitely a very price sensitive meal. In fact most businesses will over deals on lunch just to get the dinner business. If your not offering dinner at the higher prices your putting yourself in the hole.

I would imagine that Texas is super competitive for BBQ or so I've been told, so it will be hard to price your product at a premium. I would try to work it out so that you could offer maybe a sandwich, a drink, and a side of $6 or $7.

As far as a formula go I've heard people talk about 3-4 x cost but that is usually for catering a large group.

I wish you luck!

P.S. next time you make a brisket, see how many sandwiches you can get out of it. I like mine sliced thin and piled high. See if after adding in the price of a drink and a side, how much profit there would by charging 6 or 7 dollars a meal and whether you could make a comfortable living doing that. It's a tough business and you may quickly find that something you used to love to do becomes a real grind when it becomes your livelilhood!
Smoke 'em if you got 'em
CoyoteBlues
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Postby CoyoteBlues » Wed Jan 24, 2007 1:00 pm

Thanks guys...for all the advice :D

Here is what I want to do....yep there are two bbq places here in town ...with a 3rd going to open in a few weeks...the thing is they really don't have mouth watering Q.....everyone that I have cooked for ...family and friends...just the basic Q in the backyard kinda thing...have all said ...you need to go in the buisness...I am sure we all have heard that!!!

I just want to start out small with the business people that have ate my Q and have a lunch plate they can enjoy...like they have ate when its free!!!!

I think ...ya'll are right and just be compatrable with the other guys only make it better ....so they will ask for more :D

I think I will go to the other places and get what I want in the range of what I want to servw and do a blind taste test with mine included and go from there...prices with the other guys included...and by the way ...I know all the other guys in the business...how cool would it be to beat them at their money makin game!!@!

I guess ...right now ...I just want to make money to cover my cost and maybe pay for my hunting and fshing and cookin addiction!!

Do you guys buy your meat wholesale ...or how does that work.....????....I have always gone to where the meat looks good at all the local stores ...but no major butcher shop...for quality ...I guess...we do have a Sams club close buy...????
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Postby Big Mike » Wed Jan 24, 2007 2:34 pm

If the other places have takeout menus get one so you can see what they are charging for everything.
Mike

Eagle River BBQ
CoyoteBlues
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Postby CoyoteBlues » Wed Jan 24, 2007 2:49 pm

They do have take out...but not delivery... :)

This is a small town ...less than 2000 folks and I know the other business Q'ers...I guess I am trying to offer Q that is delivered...and taste better to me and others!!!

Why have these guys not done delivery ...you ask....????....'cause they don't want to!!!!

I know what they charge 'cause we eat at these places ... (I can't believe what they charge for a quart of tater salad or beans !!!)..

Bottom line is charge about what the other guys are charging and let the Q speak for itself :D

Thanks again for the words of wisdom....and do keep it coming!!!!
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Postby DATsBBQ » Wed Jan 24, 2007 7:07 pm

Dallas has a very good point. Small town, 2 Q joints with a 3rd on the horizon. You won't be able to command significantly more that the competition unless their Q sucks and yours is made in heaven 8)

Say you got a 12 lb brisket at a $1.59/lb. Meat cost is $19.08. Assume you get a 55% yield of finished briskett. You now have a lit more than 6 1/2 lbs of Brisket. Add to that $19.08 any sales tax you might encounter, the cost of the rub and the cost of fuel (Oak, hickory, lump what ever it is). Figure a little less that $7.00 for that stuff and now your outlay is $26.00. With a 6 oz serving you have about 17 portions at about $1.75 serving. Add sauce, bread, paper plates.... bet you come in a $2.50 serving just in materials. Add a couple of sides and what you think your labor is worth and you can see why you need to get at least $10.00.plate. What do you get for $10/plate at the other joints? How do they compare?

Of course there's economy of size. If you can fit more briskets on the cooker, your fuel cost remains about the same so your unit price drops.

Most of the "caterers" I know use store bought sides in huge containers. Some don't even bother to doctor it up so to speak. Find out what a gallon or 2 gallon box of tator salad costs at your local market.

Good luck. Run your numbers and see how it works out. :D
Deputy Dave

“A wise man can learn more from a foolish question than a fool can learn from a wise answer."-Bruce Lee
CoyoteBlues
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Postby CoyoteBlues » Thu Jan 25, 2007 7:34 am

Thank ya DATs...

Thats what I am talking about :D

yep...I think there sides are store bought ...I am sure this keeps their cost down...but it just don't taste "fresh" :wink: ...but its the only bbq in town...so you get what ya get!!

I guess I will make some plates up and give out some frre ones and get some ideas on what folks are willing to spend ...with my bbq!

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