If you run a food truck business, you have to balance a variety of factors to ensure your business is profitable, even in the slow months. Nothing factors into this equation more than the prices you charge for your delectable dishes, and in today’s post, we’ll review five important considerations to make as you price out your menu. As your go-to source for custom mobile food trailers, Southern Dimensions Group is here to help you succeed in this ever-growing, competitive industry. Check out the pricing considerations below and then contact us to learn more about how our custom food trucks can boost your profit margins!
Food Truck Pricing Considerations 101
The Cost of the Food
You can’t accurately price your menu without knowing the cost of the individual ingredients that go into each dish. As you begin to break down the cost of your ingredients, you may need to examine where they are sourced from. For example, local, farm-fresh ingredients cost more than those you can purchase in bulk. If providing locally sourced ingredients is important to you, then your menu prices will likely be higher than some of your competitors’. Some food truck owners accept this as a cost of doing business and look to cut prices elsewhere, while others feel it is important to pass cost savings on food to their customers in the form of lower prices.
The food truck industry is more competitive than ever. As you are pricing your dishes, it is important to consider what the competition is doing. If you often frequent the same locations and events as your main competitor and they offer comparable dishes at a lower price, then it may be necessary to lower your prices so you don’t risk losing valuable customers. Whether you are starting a new concession trailer business or you have been up and running for years, don’t underestimate the value of doing a little research on others who operate mobile food trailers in your area. Understanding your competitors’ food quality and pricing can really give you the competitive edge you need to succeed.
The cost of some ingredients can fluctuate depending on what is going on around the world, and some of the most common market fluctuations come from natural disasters. For example, tomatoes often come from Florida and California because their weather can accommodate the long growing season this crop needs. A shortened growing season due to drought can have a great impact on supply and demand, causing prices to increase. Likewise, the cost of seafood can increase after a natural disaster. If you choose to include ingredients that fluctuate with market conditions, it is important to allow for some flexibility in your menu pricing accordingly.
Your Customers’ Budgets
One of the biggest considerations to make as you price your menu items is your average customer’s budget. You want to provide your customers with the best value and quality that money can buy, but overpricing your menu items could cost you long-term customers. At the same time, you don’t want to underprice your menu for the sake of attracting customers, as this could be detrimental to your profitability. Again, doing a little bit of research on your competition can prove invaluable here, as can keeping an ear to the ground if you have to make pricing changes to your menu. Surveys are a great way to keep your finger on the pulse of your customers’ needs and they can create engagement, both of which can boost profits.
There are several other factors that are important to consider aside from the cost of ingredients, your competition’s prices, market fluctuations, and your customers’ budget. Some of these may include:
- Staffing expenses
- Insurance and food truck payments
- Fuel costs
- Supplies and specialty equipment
All of these factors are necessary to operate a food truck business, and they must be factored into your bottom line as you price out your tasty dishes.
Shop Mobile Food Trailers Online
Aside from the prices on your menu, having the right food truck for your business is critical to your success. Southern Dimensions Group is here to provide you with a wide variety of customizations and impeccably manufactured mobile food trailers that are built to suit virtually every type of food truck imaginable. What’s more, we even offer quick, three-step food truck financing for well-qualified applicants, and there is never any obligation to buy. Check out our gallery to see examples of our detailed craftsmanship and get a quick quote on the food truck you’ve been dreaming of today!