Profitability

Blue's

Blue's

Hey Sauce Makers:

I'm curious about at what point you turn the corner and start making money. I'm married to a CPA, so I'm told how many label to print (9000 minimum). I know cost to the penny of each bottle sold and made by my co-packer. I've got all of my costs wired. Does anybody get rich doing this? I'd like to share notes on this either publically or privately.

Thanks,

Blue's
 
Sort by date Sort by votes
Getting rich, in most cases, requires selling out, i.e., Kraft wants to buy your sauce. It's the same for anything... sauce, music, film... if you are in it because of your passion, you usually need a day job, or you may reach the level of living comfortably if what you are doing is successful.
 
Upvote 0 Downvote
Hot sauce is not a venture in which you will become the next Bill Gates. As was stated, it's a passion thing. Yeah, over time, you may make a few bucks, but it's more the fun of doing it. We're doing pretty good, but I can assure you, I'm not quitting my day job (as of yet).

Once you have the logistics all figured out, things to get a bit easier, as the sauce will sell itself. We purposely grew slowly, so as to keep control over the entire operation. Things have picked up a bit, so we are expanding just enough so as to maintain control. I don't foresee becoming a millionaire, unless, as was stated, you get bought out by a food conglomerate. Kind of like the lottery...The odds aren't very good, but you have to be in it to win it.

But, like I said, we do it for the fun, and we are having a lot of that. There is also a lot of work that goes into it. If you're passionate about your product, you won't find the lean profit, but if you stick with it, you never know. My feeling about the entire industry is that it's a relatively new industry, and the people getting into it now, are kind of getting in on the ground floor of something I think will become much larger in the next few years, as the taste for hot & spicy is really catching on all around the globe.
 
Upvote 0 Downvote
You must log in or register to reply here.
Back
Top