Help with pricing

2012/11/30 11:43:07
A while back we had a discussion on drinks and lemonades etc.  I finally have my recipes down and costed.  I will be making my sodas from scratch and Ill offer a couple teas as part of my concept. My cost actually isnt as bad as I thought it would be and I actually am paying just a few pennies more per serving than buying cans.  The cost is really in the cups lids and straws. 
So anywho as we were discussing before, I think all the labor and fresh ingredients demans a higher price than the 1.50 can of soda that other trucks are selling but I cant justify in my head like i believe chef buba was saying charging the 6 bucks that the lemonade stand charges for fresh made lemonade.  What do you think is a fair price where I can still move a lot of drinks with decent profit.  Just curious as to your thoughts I have a price in mind but everyone is telling me its too low. 
Also thoughts on Drink size, i was thinking 20 oz drinks, clear cups so you can see the fresh fruit garnishes
Dr of BBQ
Filet Mignon
Re:Help with pricing 2012/11/30 13:06:26
"I will be making my sodas from scratch"
That's funny.
Re:Help with pricing 2012/11/30 13:11:01
not to order but from house made syrups organic cane sugar, no HFCS and junk
Re:Help with pricing 2012/11/30 15:15:15
Just to give yo an idea, there's a lady at one of the farmer's markets we attend that sells 16oz. designer limeades for $6-$8 a pop, she claims to use turbinado and "organic" limes, she dresses the cups with either basil and mint with a tropical look.
Also she mixes her limes with other fresh fruits such as berries, pineapple. the cost of materials is way higher here than it is in MI and a lot of people actually buy her drinks.
Dr of BBQ
Filet Mignon
Re:Help with pricing 2012/11/30 16:25:56
Turbinado sugar is no big deal a little more expensive but I use it all the time in both my rub and sauce.
But there is a big difference between making soda and fresh lemonade. Giant difference. I assume now your only going to sell drinks and no food? Otherwise you'll work your tail off day and night trying to do both. 
Re:Help with pricing 2012/11/30 16:41:09
Oh Doc, you remind me of an old school chef I used to work for.  Very opinionated, very blunt, sometimes brash rude and down right mean.  His way or you were wrong.  However if you can look past all of that you have a lot of wisdom under your belt which shouldn't be ignored.  I will be doing food and sodas. 
I have been doing them for years and I have a method down which allows me to make sodas faster than someone can make a fresh squeezed lemonade.  There is the tough way and the hard way to do things.  Im not doing sodas the way you are thinking.  My process is a part of prep and easy to do.  For example, cream soda.  prep includes Carmelize sugar add water and lemon and a vanilla bean and steep.  Syrup gets cooled and put into squeeze bottles.  I make all of my syrups in this matter.  Also a part of prep is to fill a carboy with water and carbonate it.  This takes 5 min and gives me more soda water than i can use throughout service. And cutting garnish takes about 5-10 min.
Order comes in you grab a cup fill it with ice.  Pour the syrup from the squeeze bottle fill with carbonated water, stir, garnish send out.  Takes 20 seconds to assemble off the drink station.  This doesnt get in the way of my food production in any way shape or form generates more profit than a can, fits into my scratch cooking concept, and makes me feel better as a chef. 
Double Cheeseburger
Re:Help with pricing 2012/11/30 18:39:50
So what is your cost?  I think $2.50 to $3.00 is a max unless you really market it and have a market.
Ice Cream Man
Double Chili Cheeseburger
Re:Help with pricing 2012/11/30 20:37:42
It's nearly impossible to price a drink in someone else's  market.
I have found that if your price is low you will get the complainers that want to buy at supermarket prices. If your price is to high you won't have customers.
I believe the only way to price a product is to figure out how much you need to make a year and estimate how many customers you will have and do the math.
The other part is, check the competition, be higher if you're better lower if you are worse.
Start high, it's easier to lower you're price than raise it.
Never say I can do it better and cheaper than the guy down the road.