I own an Ice Cream truck with banana splits, shakes, sundae's, floats &all the works and need to raise prices

Question

How will people respond to a 25% - 35% in prices, I have been under pricing and working on volume sales my lowest priced items are $1.00 on the sticks, banana splits are $4 shakes $2.50, Nacho's and cheese $2.00, I wouldn't raise prices but gas is eating up my profit plus the price of my supplies have went up a lot since I started 5 years ago, Gas was 99 a gal cents when I started, Also where do you think the best place to work an Ice Cream truck? Would you pay a $1.25 for a fudge cycle or a push up? Or $3.00 for a 16 oz milk shake delivered to your door? I'm not going to increase the banana split price

Half of my sales are to adults.

Answer 1

OK, This is a good one for me I LOVE THE ICE CREAM MAN. I remember when I was a child and I would act just like Bill Cosby running and screaming about ICE CREAM MAN IS COMING. But then I became an adult and learned through college about marketing and demographics. It is standard to pay market price for a GOOD VALUE and when you are talking about fresh milk shake delivered to my door... Well I might pay if you would be HERE IN CHARLOTTE N.C. ... HINT... WINK WINK...

Here where I live there are several trucks that keep our pocket books running low and honestly I really do not mind it if the product is :

1. Taste
2. Good Value

Now a good value is quite liberal now, You see I can drop about $30.00 every time I see the Ice Cream Truck pull to my driveway. This is for my family of 6 (Including our puppy) and some of the most wonderful neighborhood children I ever know

Milk Shake for $4.00 is good

I am a refrigeration engineer and I deal with the local Blue Bunny distributor and they generally have a 40% mark up for profit margin standpoint as well as an energy recovery fee (fuel usage) which is a general practice in all delivery industry from UPS to DHL and right down to Paper Delivery drivers

GOOD LUCK IN YOUR VENTURES and remember it is sure nice to have a delivered milkshake on a HOT AND HUMID CHARLOTTE NORTH CAROLINA DAY

Answer 2

I think raising some prices would be fine, but 1.25 for a fudgeicle or a push up is a little high. However, I think a $4 banana split is very reasonable and you could probably get $5 for it and $3 for shakes, Nachos and Cheese you could charge $3-3.50 and people would still buy it, they are about $6. at the movies and people buy them. I think you could get away with increasing all your scoop-able ice cream by at least .25- .50 but keep those little ice creams and Popsicles in the $1 range. How big is your banana split anyways, traditionally it is 3 scoops and 3 different toppings, there are many ice cream shops around us and a banana split is $6 or more in most shops.
People will understand if you raise your prices, you haven't raised them in 5 years you have been earning less and less every year with the price of gas these days. Heck I want to know where gas was .99 only 5 years ago. I've been driving for 13 years and gas was over a dollar here when I started driving. Good luck!

Answer 3

There is something about an ice cream truck that delights people of all ages. Raise your prices enough to cover your expenses and make a little profit. People will buy.

Answer 4

Look around, prices everywhere are going up, you wont be the only one raising prices. You have to compensate for inflation if you want to be in business. People will pay the higher prices, trust me, but if you've been in business since gas was 99 cents, than you already know all this.

Answer 5

Kids today are loaded. Yes to all those higher prices. And kids today don't know the value of a dollar. Charge a lot. The kids will pay. I promise. Go to the richest neighborhood you can find, with a lot of kids playing outside. Or go near a beach or lake, when school is out for summer. Reminds me of a song. Good luck and get rich!!

Answer 6

It's a cost of doing business. I didn't like raising my menu prices either. But it has to be done. And if half your clientele are adults, they'll realize it too. You don't need to advertise an excuse, just new prices. If people ask why, just say costs have gone up, and I swear they'll nod in agreement.

And yes, I want a push-up! I'd pay for that! Haven't had one of those in years!

Answer 7

One summer I ran to the ice cream truck at my sister's while we were working outside in the heat. That truck that summer, double popsicles were $1.00 ...very reasonable...Next summer at her house ran to ice cream truck and everything was fancy clown faced popsicles, pineapple coconut popsicles,etc for $3.00 each...too high in my opinion. I can see with gas prices it would be hard to make it pay.

Answer 8

genuinely a warm Fudge Sundae with coffee ice cream &walnuts (i will't eat whipped cream, my abdomen does not like it) :( yet once you supply me terrific answer, it will make up for it :D