misc Conventions / Expo pricing

[AJ Drew]

Have noted a few THP sauce, salsa, and other value added producers mention setting up at conventions and expos.  With the table cost, staff cost, and travel costs I wonder about pricing.  Do you stick with normal pricing and figure its a loss leader for advertising sake or do you raise your prices the way they sell popcorn at a movie theater?

I do not make sauces, but read about an expo in CA and tried to imagine what it would cost just to break even.  The air fair, hotel costs, table fees, shipping product there, shipping product home.  At $2.00 a bottle net (just a guess), that is 500 bottles to sell per $1,000.00.  I imagine that might cover the hotel stay at the convention center.  Damn, how do you guys do it?

 

[The Hot Pepper]

A show is to market yourself. If it is a loss you chalk it up to the cost of marketing, as in hopefully you have just gained a bunch of future customers. The key is when you are there you have to be prepared with proper marketing materials, product samples, etc. and be prepared to hustle. A show is a real life "commercial." If you are looking to sit back and sell you will be disappointed. Sometimes it pays to lose. I'm not sure of the stats on profit/loss. Others could chime in who have been there.

 

[salsalady]

depends on what "show" you are talking about.  Booth fees are from $300-$1000-$2500.
 
 
 
Speaking in regards to a couple of the national hot sauce show I attended, my comments would be-
Booth fee ~$900
Do not attend the show expecting to make bank
Do not attend the show if you cannot afford to lose money
Do not attend the show unless you can afford to pay for all travel, booth fees and expenses out of pocket
If you break even or make money...BONUS!
Do not believe other vendors claiming to "sell out and have the best show ever..." and then pack up a pallet of sauces to ship home
Do believe that some vendors are actually making money, but not as many as they would have you believe
 
One vendor I was next to- it was their first show, they drove to the show, selling 12oz BBQ sauce for $3.  They sold out by mid-Sunday.  For $3 a bottle, hell, that's even a better price than the supermarketBBQ sauces!  Kinda hard to compete with that with a $7 BBQ sauce, not including shipping to the show.  It is what it is~ 
 
Most all the other sauces were $5-$10 for 5 oz artisan hot sauces.  Pretty much in line with their retail prices. 
 
 
 
Regional shows are a little different.  Usually less travel expenses, less booth fees ($100-400).
 
Holiday Bazaars offer a great opportunity to sell GiftPacks.  But again, most of the big shows in my area are $1500 and up for a booth for a 2 week show.  You have to be able to cover lodging, meals, extral help so you get a pee break, extra help so you don't bite the head off the 7-thousandth customer who asks what a "SHOO" is (SHU).............extra costs for the gift pack packaging/gift wrapping/bling
 
 
 
 
 
 
Back on topic... most sell their products at their listed retail prices. 

 

[AJ Drew]

Wait, some of these things are two weeks long?  This might sound funny, but i am being dead serious,.  You have to be nice, smile and shake hands for two weeks long?  Even the two day shows, I have no idea how you can do it.  Not just the funny part about being pleasant, but the travel, managing staff, living in a hotel room, none of it sounds very pleasant at all.

I think maybe there is a big difference between growers and value added folk.  Value added folk have to be right there, face to face on a constant basis.  I can manage a few hours three times a week at farmers markets, but that is about it.

 

[SavinaRed]

You are not there to profit and be ready to take one for the team with the pocket book. You are promoting your product. Marketing is an expense and shows are for marketing your product. If anything you discount your product and get it into as many peoples hands as possible. This is business 101. 
 
And if you are not wiling to do these shows maybe there is another type of business that will suit you better. 

 

[Lucky Dog Hot Sauce]

Wait, some of these things are two weeks long?  This might sound funny, but i am being dead serious,.  You have to be nice, smile and shake hands for two weeks long?  Even the two day shows, I have no idea how you can do it.  Not just the funny part about being pleasant, but the travel, managing staff, living in a hotel room, none of it sounds very pleasant at all.

I think maybe there is a big difference between growers and value added folk.  Value added folk have to be right there, face to face on a constant basis.  I can manage a few hours three times a week at farmers markets, but that is about it.

 
My county fair was 17/20 days. Only Mondays off. I'll do it again next year.
 
Most festivals are 1-2 days. Albuquerque is 3. 

 

[AJ Drew]

And if you are not wiling to do these shows maybe there is another type of business that will suit you better. 

Yep, that would be why i am in another type of business.  It suits me better.  I just like growing things.  I asked because I want to know more about what people like Salsalady, Luckydog, and other members here do.  More of a social thing than a business thing. 

Luckydog, i think i would pull off a county fair for a week.  It wouldnt be easy, but sleeping in my own bed at night would help.  The thought of traveling by plane, organizing all transport of materials, and so on.. i think it amazing that you guys can pull it off.

 

[The Hot Pepper]

You could always attend one as a patron, bring business cards and samples, shake hands with vendors and schmooze, attend the after parties/dinners and that is marketing as well. Especially if you sell to businesses.

 

[AJ Drew]

Hotpepper, me smoozing... oh damn you make me laugh.  I guess if PBM were to grow beyond me and the kids I could have someone in charge of the smoozing department.  I do thank you for thinking my range is greater than it is, but naw i do not present well.

 

[rickster]

start small. local farmers market, flee markets, gun and knife shows. things like that and see how it goes. learn what to do and must importantly, what NOT to do.

 

[The Hot Pepper]

Hotpepper, me smoozing... oh damn you make me laugh.  I guess if PBM were to grow beyond me and the kids I could have someone in charge of the smoozing department.  I do thank you for thinking my range is greater than it is, but naw i do not present well.

 
You have to schmooze even at farmers market level. Talk to your customers and be engaging. I don't know why you wouldn't be good at it, online you have a vibrant personality. 

 

[Lucky Dog Hot Sauce]

 
You have to schmooze even at farmers market level. Talk to your customers and be engaging. I don't know why you wouldn't be good at it, online you have a vibrant personality. 

 
The duck is his security blanket. 
 
Can't very well carry a duck around with you at a trade show. 
 
Well, unless it's a trade show for selling ducks, in which case my logic goes right out the window. 

 

[salsalady]

ajdrew, I really don't see hot sauce festivals, holiday bazaars, county/state fairs as a real market for you unless you eventually get to making Value-added products.  Noone at the hot sauce shows is selling fresh chiles (the 2 biggest shows are in Jan and March, the next couple are in April, July, and July)  Not a whole lot of fresh chiles there....
 
There are a couple regional festivals in Sept/Oct that I think have some fresh pepper vendors, but that's not the focus of the festivals.
 
BTW, have you ever see HorribleHaggis?   You and him....long lost cousins or something?
well, I couldn'f find a current link, and there's also Capt Thom.
GREAT marketing with the scruffy beard thing going on.
 
 
 
Just look for local events where you can peddle your wares which are fresh chiles and other stuff.  Other events are probably not the right venue for what you are selling. 
 
Keep looking, you'll probably find some local event that would be a good fit. 

 

[AJ Drew]

Salsalady, wasn't really asking for business interest.  More a social interest in what folk like you do.  Read people talking about an expo, saw some photos, never knew anything that fancy existed for peppers, hot sauce and other products.

Hotpepper, wow.  Thank you for the compliment.  Me at one of those fancy expos would be like an episode of the Beverly Hillbillies without the millions.

Thank you everyone for all the encouragement, but was really interested for social value.  I read someone talking about 'pepper whores' at one of the expos.  I thought to myself, there can not possibly be pepper whores.  So i had to look at the photographs.  Still not sure what a pepper whore is, but in the pictures everyone was very well groomed and dressed, everything was very fancy.  Not my world.  I do not think I own a pair of jeans without holes.

Still wondering what a pepper whore is.  Do they dance and get naked as people throw peppers to them?  I cant imagine people sliding them into their underwear like they do dollar bills, that might get to hurting.  My wife would beat me.

BTW; About the parties...

https://www.youtube.com/watch?v=kMr7NCFoHFo

 

[The Hot Pepper]

Hotpepper, wow.  Thank you for the compliment.  Me at one of those fancy expos would be like an episode of the Beverly Hillbillies without the millions.

 
Don't you mean Duck Dynasty?

 

[salsalady]

never heard the term, can't comment o that.

 

[AJ Drew]

Salsalady, it turned out to be someone just being stupid and hurtful of someone else.

Hotpepper, nope not Duck Dynasty.  They were the other way around.  Beverly Hillbillies were rural who made a ton of money and tried to go urban.  Duck Dynasty folk are more like Green Acres.  They made money off the Duck Commander line and tried to go rural with that TV show.  They came off looking more like the over the top drag show guys or maybe the white guys doing black face a few decades ago.  I think the right word is caricature.  Lots of people bought it hook, line, and sinker.  I think it is kind of insulting.  I doubt any of them worked a field a day in their life.