If you are about to buy a food truck, then you are making what will likely be the biggest business investment of your career. And if you are like most entrepreneurs, you really need to learn how to justify food truck cost before pulling the trigger on your investment. This article will go over three must-haves covered in the food truck cost that should be met in order to justify the purchase price.
1. Higher Food Truck Cost and Custom Platforms Go Hand-in-Hand
First of all, let’s be clear: a higher up-front food truck cost does not really mean you are paying more. In fact, when people buy a food truck that’s custom to their needs, the overall cost is significantly less. Last year more than 80 percent of food truck businesses failed within the first two years of operation. The main reason was that they invested in a used food truck that was designed for another business model and its goals. While you may save money on the upfront cost by going used, you run the risk of malfunctions, equipment breakdown, mechanical problems, and you are running a business within a space that wasn’t designed to accommodate your growth goals. Overall, the food truck cost is less when you invest more upfront with a custom truck, as this will save you thousands over the years to come.
2. Demand High-Quality Equipment
When justifying food truck cost, equipment should be front and center. Your range, oven, fryer, freezer, griddle and other pieces of food truck equipment are core to your business–without these, you would not be able to serve your customers. Some food truck companies will have lower price points on their products by cutting corners, and one of the most common ways food truck builders cut corners is to outfit their design with used, low-quality food truck equipment. Instead, justify food truck cost by working with a builder that uses the latest, new equipment and that uses competitive pricing and manufacturer relations to help their customers gain more savings.
3. Growth-Driven Design Must be Included
Your business, menu and goals are unique. This means the food truck cost should include a growth-driven design, as it is the foundation of your ability to be successful. The best food truck companies will look at your business model, short-term and long-term goals, menu, target customers, market, competitors, and use this data to engineer a food truck with the right platform space to make your business highly successful and sustainable. For example, let’s pretend you have seven menu items and you plan to work alone for your first two years of business. In year three you want to add a rotisserie, double the items on your menu, and hire two employees. Your food truck cost should include a growth-driven strategy in which the builder designs a space that will serve you well going out the gate, as well as help you grow and be profitable for years to come.