High school concession stands are an excellent way to raise money. Set them up during sporting events, plays, and music and dance recitals to bring in extra income. Attendees want refreshments and schools and affiliated organizations need to make money. It’s a win-win.
Your high school concession stand will do even better with strategic pricing. Affordable yet profitable price points and upselling strategies will maximize profits. This article will provide tips on ensuring your high school concession stand prices support your fundraising efforts.
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Every marketing effort requires a clear understanding of your target audience. You must be familiar with their favorite food items and what they are willing to pay for those items. The event type will also play a role.
Here are some tips that ensure you use a pricing and selection strategy that caters to audience needs.
The demographics of your target audience will indicate their dietary preferences and spending habits. Common demographics include:
Once you have identified your target demographics, you can determine what type of concessions to carry. Will they prefer healthy choices, or is it a soda and chips type of crowd?
You can also set pricing accordingly. If you are catering to a lot of young kids, they probably won’t have much disposable income. Price your items accordingly.
If your attendees consist of higher-income parents, they will likely realize that you are pricing up to support a cause. They may be willing to spend a few extra dollars on a soda.
Your event type will also indicate your attendee demographics helping you determine high school concession stand prices. For example, if you set up a concession stand for a play or recital, parents will attend to support their children. You can price items a bit higher.
A football game or school carnival may have a wider mix of students and parents. The prom will be for students only but consider that many parents may have given their children a little extra to spend on this special night.
Your demographics and event type will guide how to price items based on profitability, but you must also conduct a cost analysis to ensure your expenses are covered. Here are some things to consider.
There are various factors to consider when setting concession stand prices. They include:
This video explains more about the licenses and permits you will need to start a food concession stand.
It can be difficult for food vendors to calculate the cost of an item with several ingredients. Touch Bistro offers this handy equation.
The same Touch Bistro article also offers an equation for calculating labor costs and other operational expenses as follows:
Food cost= sales – (labor costs + overhead + profit goal). The resulting number should indicate a fair price structure.
It’s important to price competitively. If people think you are charging too much, they won’t want to buy. Moreover, you may incur reputational damage.
Here are some tips that ensure competitive pricing.
You don’t need to compare your concession prices to supermarket prices. People understand they are paying more for convenience and to support a cause. However, you should avoid overcharging.
Base your pricing on other school and local events. Go to nearby fairs and school happenings to find out what their concession stands are charging. Charge similar rates, or maybe even go a bit lower to undercut the competition- while still maintaining a profit, of course.
According to Gold Medal, high school concession stands can bring in a profit margin of up to 70% to 80%. However, you must consider the item to charge a reasonable amount.
For example, water purchased at the store can be as cheap as 25 cents a bottle. However, it’s not unreasonable to charge $1 a bottle at a concession stand bringing in a 75% profit.
Other items may be too expensive if you charge a 75% profit. Profits for these items may be closer to 50%.
Here are some other market standards to consider:
It’s essential to choose items you know will sell. Here are some ideal options.
Concession stand food should be easy to prepare and eat. Serve a mix of freshly made and pre-packaged foods including snacky and healthy items to ensure everyone has options. Popular choices include:
When menu planning, include items people will enjoy, but it’s also important to focus on profitability. Items with low ingredient costs and high demand are ideal. For example, water is perfect because it is inexpensive to buy, popular, and guaranteed to turn a profit.
Other high-profit items are:
Watch this video to learn more about high-profit concession stand items:
Today, many people have dietary restrictions. Some want healthy options. Others may require items that are non-dairy, gluten-free, vegan, soy-free and the list goes on.
Regardless, it’s important to understand which healthy options are in demand. These items can comprise 9.2% of total revenue when offered. And with 52% of people saying they have dietary restrictions, you can’t miss out on this opportunity.
Get familiar with various dietary restrictions and learn what ingredients to avoid. Here are some helpful guidelines:
Get familiar with your selection so you can provide options when someone asks, “Do you have anything vegan/nut-free/paleo, etc.?” You may even offer a menu specifying which foods are suited for various dietary restrictions.
Portion control is related to profitability. If you serve overly large portions, you will lose money. If your portions are too small, you will disappoint customers. Here are some tips that ensure you strike the right balance.
To ensure portion control, you must implement standardized servings. Be consistent to ensure you aren’t giving away food unnecessarily. Create exact measurements for each of your menu options and train your staff to ensure they adhere to them.
You must also be careful about how much food to buy for your concession stand. Buy too much food and some of your food may go to waste. Buy too little food and you may run out and miss out on sales.
Base your special event food stand purchases on the following metrics.
This video provides food inventory management tips that will guide your stocking decisions.
Don’t miss out on upselling opportunities. According to SalesGenie; businesses that upsell see a 10% - 30% revenue increase on average and a 20% increase in customer lifetime value.
You can upsell by charging more for extras like cheese and chili. You may also charge a reduced rate when people buy in bulk. For example, offer a deal so customers can purchase one water for $1 or two water for $1.50.
Your pricing strategy should go beyond ensuring you make a profit and not overspending. You must also cater to buyer psychology in your pricing methods. Here are some things to consider.
Psychological pricing makes the customer think they are getting a value. Not every psychological pricing tactic will work at a concession stand, but here are a few effective strategies.
Value perception means people will value your product differently based on how it fulfills their needs. For example, a person may think a branded painkiller is more effective in relieving pain than a generic painkiller simply because of the brand name. Or they may buy a luxury item because it’s advertised as luxury.
So how can concession stand sellers work value perception in their favor? Well, people at an event often don’t have many food options. It may not be easy for them to go out and grab something.
A concession stand is there and it’s convenient making it more valuable to attendees. Therefore, you can charge a bit more.
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