Keeping drink costs down

For me, the selling of cold drinks is the least profitable part of my business, percentage wise. I don't care, and I really don't look to make lots of money off drinks, but I consider it a necessary part of the business and am always looking for ways to rake in more money for drinks while still giving my customers the best value possible.

I may be nuts, but I sell bottled Coke, Diet, and Sprite for $1.00 My cost is 49.5, so my food cost is a hideous 50%. Obviously I don't really like that number, but I really hate to charge folks for than a dollar to get a cold drink, and until it I am selling it at a loss I refuse to raise my price.

I also charge a $1.00 for bottled water, which obviously helps the food cost a lot, but I still having been working on bring the drink costs down further.

I tried an experiment today and sold canned Jones Soda for $1.25 a can and I sold 40 of 'em! The cost on the Jones is only .32 a can, and is "sometimes" available at Wal-Mart. While obtaining a steady supply of Jones is difficult, as Wal-Mart ALWAYS seems to run out after a few hours, young people really seem to love the Jones Soda, and it helps the drink food cost quite a bit.

Does anyone else sell anything like this that helps on the drink costs?

You have the right idea in offering a choice in drinks. You do not want to sell a lot of anything at a 50% food cost. Your best sellers should be profitable and easy execution. Offering choices to "take the weight off", of the not so profitable item is smart.

Consider the fact that you sold me 4 bux worth of hot dogs. By selling me a coke bor a buck, you made another 50 cents. Do that 100X and you made 50 dollars.
In the resturaunt biz we often sold "loss leaders" to not only get a customer to buy something but to add something to the check that wouldnt be there otherwise.
britt

Why mess with bottles? They are $pendy and break easy not
to mention take up a lot of cooler space!

Why not cans? Coke/Pepsi products in my area cost $2.50 a
12 pack in just about any store. Cost is .21 cents each !

Not to mention your selling your soda too cheap anyhoo.
A bottle or can of soda in a convenience store in my area
is anywhere from $1.40 to $2.25 for a single bottle!

rick, i feel your pain. we had planned on selling 20 zo bottles as well(plastic bottles, like you), but our supply of them was dificult to obtain at a good price. however, the canned 12 oz is .29c each, so we sell them, of various flavors for a buck. bottled water, like you, for a buck, with a cost to us only .15c(16.9oz)
its true, you could sell the 20oz plastic bottle for 2dollars, easy. i once attended a tenis match, and the bottled water(same .15c as mine) was selling for three bucks.
dont fret the numbers, just do what you got to do.
peace

Never sold plastic bottles of soda, just cans. Cans will cool down way quicker than bottles, and yes, are cheaper. Cans will chill within 5 minutes in a full tub of ice, and take less space. I don't like a large bottle of soda with my dogs personally, 12 oz, is just fine, not twenty, and certainly not 24 or whatever they're peddling nowadays. It seems that you cant just find a can of soda at a store now, they're selling the huge plastic bottles.

As far as water, keep it ice cold, and it costs about .4 cents per bottle, way better profit than the soda.

Yup, cans are the way to go.. Watch for sales at the stores (far cheaper then the distributor).. Your other cheap option is buying 2 liters, and pouring them in cups filled with ice.. More work, but about the same profit after all is said and done.

Delta,

PLease reveal your source for .04 cent water. I am buying at Sams for 3.88 for 32 bottles. Thats about .12 cents a bottle. I would love to pay .04

me too. Sam's has been the best i have been able to find.

OOOO, your right, same at Costco, misprint on my part, .12 cents is right, Brainfart here, hehe still a great profit though, I sell em for a buck a bottle.

Delta you have them too.

I gotta agree with everyone on selling the cans. Keep an eye out for sales at local grocery stores. We always find the best deals around any holiday and stock up. We usually buy soda between $2.00 and $2.50 a 12 pack. We still sell them here in Central PA for 50 cents. People will always comment on how great the prices are and buy a sandwich from us.
As far as water is concerned I haven't found a better place to buy it around here other than Costco.

Don't forget the cost of ice too.

I like the $1 price point and stick with cans and bottled water.

yeah, definetly shop shop shop!! I just bought about 90 12pks. at shop rite when they were on sale and lets face it, keeping food costs low is key.
And yes absolutely $1 !!

definetly $1 for cans and water. .50 seems like breaking even after time and gas to get sodas and ice to cool it but if it works for you go for it

quote:

Originally posted by Rootsman

Don't forget the cost of ice too.

I like the $1 price point and stick with cans and bottled water.

I've gotta agree.

Rick-you might want to check with your local Budweiser distributor.I had one stop by my DEFINITELY non-alcoholic stand last week and they are pushing a huge line of teas, bottled waters, juice and energy drinks in a variety of sizes.This stuff is trendy stuff and upscale with some nice promo offers...

The price which always make me headache of my business.