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: 2 class blocks
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 (use cost factoring
sheet).
8. Do a daily sales prediction (forecast) 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