Concession Trailer Business

By Editorial Staff / Industry / Last Modified: February 22, 2017

Many entrepreneurs find it difficult to start a concession trailer business right from the beginning. In fact, even experienced ...

Many entrepreneurs find it difficult to start a concession trailer business right from the beginning. In fact, even experienced business owners may fail in this industry. But over the years, there have been several factors which differentiate the successful concession trailer businessmen from the ones who have failed in the past. The four major factors which influence this business are:

1. Setting up your concession trailer business correctly

Planning and organizing your business is essential and careful consideration should be made to the types of food you plan to sell. Their estimated purchase cost and selling prices and also the locations in which you plan to pitch at should also be thought through.

Planning your business can significantly reduce the risk of your concession opportunity failing. By performing a simple calculation you will be able to accurately see if your business will work in reality.

Let's say for example, you wish to sell ice cream near a busy beach because people will be looking for a way to cool down during hot weather. The total cost to produce one ice cream (containers, ingredients, etc) is 50 cents so you add your profit margin and decide to sell your ice cream for $2. You estimate that every day there are 500 people at the beach and you make a fair assumption that you will be able to sell to at least 20% of them. This means out of 500 people, you will forecast that you will sell 100 ice creams each day giving you total revenue of $200 and an expense of $50 which is a $150 profit every day and $4500 per month.

From carrying out this sort of scenario exercise, you will be able to see how your numbers stack up and whether or not your business will be viable. Looking at this example, we can see that selling ice creams at a beach could be profitable IF 100 people bought ice creams every day, which is very likely considering the circumstances.

Another caveat of setting up your concession trailer business is obtaining the legal permission to sell food in public to avoid prosecution. To do this, you will need to contact your county, city and state officials in the location you plan to sell.

2. Selection of the right concession trailer

A major hindrance in starting off a trailer business is the lack of initial capital for buying a trailer. Some entrepreneurs devote too much money on trailers and thus leave themselves with very little liquid cash which is essentially required for the daily running of the business. An owner of a concession trailer business, Bill from Texas, incurred losses in this business for more than half-a-year before ultimately breaking even, and then making profits. On being asked about what he could do to make a difference, he said that rather than buying a new trailer, he should have got a used one for almost half the price.

There are many concession trailers for sale online and the prices and features of new and used concession trailers can be compared easily using sites such as Concession Trailer Bay.

By buying a cheap concession trailer, you will leave yourself with more money to buy equipment and stock and also be able to recoup the initial costs quicker so that you are not in debt.

3. Attracting the customers

A concession trailer which has many people will obviously make more profits as compared to those having few people as customers. Still, most businessmen are not aware of how to increase their customer base.

William, an owner of a concession business with more than 5 trailers in Miami, said that the cosmetics and the pitch area of the trailer were the most important things which must be taken under consideration. He also added that selection of the right area to sell was as important, but more importantly, selling the right kind of goods was vital. For instance, if one had a soft drink concession trailer, locating it at a busy beach would be apt. Another observation that he made was that unusual-colored trailers catch the eye of more people.

4. Make money by working less

Believe it or not, working less can mean making more money. By hiring someone to manage your concession trailer, you will be able to spend time growing your business through doing research and finding out more about the concession trailer industry.

Having a bird's eye view of your business can lead you to see things that would otherwise be illusive if you had been working at the trailer every day. Along with this, hiring someone is essential to having more than one concession trailer as it is obviously not possible for you to work in all three at the same time.

So in conclusion, working less can mean making more money because you leverage other people's time and can gain a much better insight to your own business.

Learn more concession business tips and find concession trailers for sale only at Concession Trailer Bay.

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