quote:

Originally posted by mattcrunk

quote:

If you sell a widget for $2 that costs $1 you have 50% margin.
If you sell a dohickey for $1000 that costs $800 you have a 20% margin.

I’d rather sell one dohickey a day than 100 widgets.

So would I. This is the very aspect of a hot dog business I have a problem with. My average ticket now is $100 to $150, with a 98% profit margin (it’s a service business, so little materials are used) which equals about $100 per billable hour for work I personally conduct. If I were vending hot dogs full time, that means I’d have to sell 100 per hour at a $1 profit each (or 50 @ $2 profit) just to break even. It makes a lot more sense in my case to pay some kid ten bucks an hour to sell them for me. Why is that so hard to understand?

So when do you open.