Is a 25% cut of sales by event organizier ok?

[ProvidenceCoffee]

Hi - I have a chance to sell coffee buy the cup at an event where the organizer wants 25% of the gross sales - never have done this so no clue (I'm mostly a wholesale roaster) - is 25% a standard amount or should I negotiate for a lower amount - any advise would be great! Thanks

 

[peterjschmidt]

What will happen if you negotiate? Will your opportunity disappear? Will you leave a bad enough taste in the organizer's mouth that you won't be asked back?

Will your level of profit at 75% be a good enough deal that you want to proceed? That to me, is the real question. In a way, it doesn't matter what's being skimmed off, but whether what's left is still acceptable to you.

 

[PinkRose]

I'm guessing that they're not charging you a fee to be a vendor at the event, and the 25% is the only cost for you. (Some places charge a flat $200 fee.)

Will they be proviiding the electricity and water for your equipment?

Will they let you promote your company name? Will you get some decent exposure for your roastery? If so, letting them have 25% is worth it, if you're willing to put in the time and effort.

 

[topher]

Thats not bad. What size cup and how much are you charging. You will still make a good profit and the publicity is reason to do it alone.

 

[CoffeeJunky]

If you do not have pay table fee, booth rental or participation premium other then the 25 percent is not bad at all.
So how much are u going to charger per cup and how many are you expecting to sell.

 

[tazzadiluna]

If anything, it would be great for networking - new customers/subscribers and possibly new accounts as well. Make sure you have some handouts ready like business cards and a good size sign, if they let you!

 

[ProvidenceCoffee]

Thats not bad. What size cup and how much are you charging. You will still make a good profit and the publicity is reason to do it alone.

Thanks much and since I've never done this before - really would like to keep it simple with the least amount of moving parts - thus on the cup size should I offer small. med, large or just large and small? The event is about 12k people over 3 days - with a gate fee and the stuff for sale is not cheap - thus I think the attendee with pay good $ for a great cup of coffee - any ideas on pricing?

thanks -

 

[CoffeeJunky]

Are you planning on serving espresso base drinks or just coffee. coffee should be around 2.50 small 3.50 large.
Espresso should be around 4.5-5.95 only two size should be offered. More size only give them confusion. Make sure small size is about 12 oz and large should be 20 oz.

There are few website show their coffee price locally. Check them out and see what you should charge. I would add about 50cents to about 1 dollar more for the event cost.

Good Luck

 

[ProvidenceCoffee]

Are you planning on serving espresso base drinks or just coffee. coffee should be around 2.50 small 3.50 large.
Espresso should be around 4.5-5.95 only two size should be offered. More size only give them confusion. Make sure small size is about 12 oz and large should be 20 oz.

There are few website show their coffee price locally. Check them out and see what you should charge. I would add about 50cents to about 1 dollar more for the event cost.

Good Luck

Great and thanks - no espressos for this show - maybe down the line & I have a few more questions:

1. should I use airpots or urns - how long should I keep the coffee fresh (when do you dump and refill)?

2. how coffee types should I offer - want to keep it real simple - maybe two plus a decaf?

3. also any rule of thumb on volumes - the show is three days about 4k people per day, hours are 9-5.

4. What about the add ins like milk, 1/2 & 1/2? use a carafe?

Good chance I'll look to do more of these events so I don't mind investing in some equip.