damien275x
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- Oct 18, 2011
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Hey Guys – Just after a bit of advice here.
I am about to enter a round of negotiations with small businesses at the local food court – I am basically providing them with a web based portal where people can logon with their iPhones/Web browsers and place orders, and my staff deliver orders to people.
I have calculated the amount I need to make on each order, and the amount of orders I need to make in a day to turn a (reasonable) profit. I am minimising risk by taking the delivery route duties on myself until they are consistent and steady.
I am wondering if anyone here has ever run a café or food business and has some kind of idea what the margin on each food products are – Like sandwiches, drinks, wraps. What made the most money? I want to be informed on how they make their money so that I can come to a fair negotiation and not sell myself short, or rip the businesses I am dealing with off.
At the moment I am thinking a flat fee of $2 per order, and $5 for delivery, passed onto the consumer. Obviously I want to reduce the price that goes onto the consumer to increase the incentive, or disguise it by having the margin on their profit reduced, thus covering the delivery and it appearing cheaper. I understand I may be selling myself short but I will turn a profit with enough volume. Can anyone provide me with a bit of advice? There’s no competition so should I just double the price?! J I should be more greedy….
Thanks!
Damien
I am about to enter a round of negotiations with small businesses at the local food court – I am basically providing them with a web based portal where people can logon with their iPhones/Web browsers and place orders, and my staff deliver orders to people.
I have calculated the amount I need to make on each order, and the amount of orders I need to make in a day to turn a (reasonable) profit. I am minimising risk by taking the delivery route duties on myself until they are consistent and steady.
I am wondering if anyone here has ever run a café or food business and has some kind of idea what the margin on each food products are – Like sandwiches, drinks, wraps. What made the most money? I want to be informed on how they make their money so that I can come to a fair negotiation and not sell myself short, or rip the businesses I am dealing with off.
At the moment I am thinking a flat fee of $2 per order, and $5 for delivery, passed onto the consumer. Obviously I want to reduce the price that goes onto the consumer to increase the incentive, or disguise it by having the margin on their profit reduced, thus covering the delivery and it appearing cheaper. I understand I may be selling myself short but I will turn a profit with enough volume. Can anyone provide me with a bit of advice? There’s no competition so should I just double the price?! J I should be more greedy….
Thanks!
Damien
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