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What Entrepreneurs Need to Know to Justify Food Truck Cost

legionfoodtrucks - July 25, 2019 - 0 comments

Food truck cost is something that concerns anyone about to start a food truck business, as it will be your biggest investment. Once you have your business model and concept created, your next step is to set growth goals, buy a food truck, and review your growth to ensure you are on pace to achieve your high revenue goals. But buying a food truck is not such an easy task. There are a number of things that determine if a food truck cost is fair and reasonable, or a complete waste of money. This article is intended to help educate aspiring food truck companies learn how to justify food truck cost by understanding how price plays into your goals and ability to be successful in your business. 

custom food trucks

Buy New Custom Food Trucks or Used?

When it comes to trying to lower the food truck cost, a lot of people think going the used route will save them the most money. But in reality, custom food trucks offer better savings. Last year more than 80 percent of all new food truck businesses reported failing within their first two years of business. The number one reason why they failed was truck and equipment malfunction. When you buy a used food truck there is no guarantee you are investing in reliable equipment. In addition, a previously owned food truck was designed for another business with a platform to foster their current needs and future growth goals, and not yours. If you were planning to have kids you probably wouldn’t buy a one-bedroom house because it wouldn’t accomodate healthy growth, and the same ideology applies to a food truck’s platform. Therefore, the cost of a used food truck will likely be a bad investment and certainly a risky one either way you cut it. This is why buying new custom food trucks designed for your needs pay off. 

low food truck cost

Work with a Builder that Justifies Food Truck Cost

Be sure you partner with a builder that can justify the food truck cost by showing how it aligns with your plans to hit your growth goals. For example, if you and your partner decide you want to start a food truck business yourself, and have five items on your menu with the goals to double your menu items, invest in a deep fryer and add an extra employee if you can gain a 40 percent profit on your business at the end of the year, then the cost of your food truck should justify the things you need to hit these goals. In cases like this, the best food truck companies will create custom food trucks designed to accomodate your current needs with just enough space to allow you to grow into your target business model. This means the food truck cost must support a build that will promote growth, based on your plans, from start to finish. 

food truck builder

Food Truck Cost and Equipment

One sure way to run into problems with your food truck business is to try to keep the upfront food truck cost down by investing in low-quality equipment and materials. For example, porous materials like heavy duty plastics, tiles, wood and other items can be difficult to clean, trap moisture, collect food debris, and grow mold. The last thing you need is to have sick customers and the health department lowering your grade and fining you. This is why investing in high-quality stainless steel and the best equipment will justify the food truck cost while presenting you with an efficient workspace that’s easy to clean (and keep clean) and that will enable you to run an efficient business with delighted customers lined up around the corner. 

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