HOTDOG VENDOR PROJECT

Objectives: Research and select a vending cart, create signage, calculate monthly payment, determine COGS, create a sales prediction chart, conduct break-even analysis, compute gross and net profit.

This activity is used for advanced marketing students for a year ending project.

Time: 1 to 2 weeks.

Activities:

1. Select a location for a hotdog vending operation. (mall, sporting
event, downtown, beach, etc.)

2. Create a sign for your vending cart. (example: Beach Dogs)

3. Select a vending cart from the internet. Calculate the payment for 24 months at 8% interest. (I=P x R x T) Payment=P+I/ 24

4. Determine your monthly salary that you would like to make. $10/hr is a good figure.

5. Determine your hours of operation and make a sign showing this.

6. Determine what you will sell at your stand. (drinks, chips, etc.)

7. Calculate the food cost of your hotdogs, drinks, chips, etc.

8. Do a daily sales prediction chart for a week, then a month. What about weather, holidays, etc?

9. Calculate the monthly breakeven price per hotdog without your salary. Use the following formula:

BE= cost per dog x units sold per month + monthly loan payment/Units sold per month

10. Calculate the monthly breakeven price per hotdog with your salary. Use the
following formula:

BE price= cost per dog x units sold per month + monthly loan payment +monthly salary/Units sold per month

11. Now determine your prices and create a sign showing them.

12. Determine your monthly gross profit. Use your monthly sales forecast x your selling price to calculate sales.

Gross profit = Sales –COGS

13. Determine your monthly net profit.

Nat Cridlin
Lee County Vo-Tech School
Ben Hur VA