OPPORTUNITY COST

Another great business phrase.  “Opportunity cost”

Every year, the hot dog dilemma.

Every year we struggle with whether to include the all-American, beloved hot dog on the outside grill during Folk Festival.  No sandwich creates more dilemma.  Why, you ask?

Well, here’s the thing–the lines are constant and we have this two day opportunity to create incredible sales–the type of sales that actually allow us to shut down for (almost) a week each August, to give the staff a group-vacation, while doing thousands of dollars worth of the many necessary repairs to a 150 year old building, that are impossible to do when you are open 7 days a week!

So, we sell sausages and cajun chicken, and lobster rolls, and a most amazing jambalaya…and all are delicious, and command a price.  And, so, the thing is, although hot dogs are “cheap” to us, people don’t fancy spending much money on them–they are, well, hot dogs!  They so easily can be perceived as being in the “rip off” zone.

So…do we have people stand in line, take up time and space, to walk away with a (cheap) hot dog?  Or…Do we go with the double-dog?  The jumbo?  The foot-long? Do we go “all beef””  Or, “Go big or go home dog?”  Or, Kobe beef?  Every year, same conversation!

Now you know why hot dogs cost $8 at Fenway!  

Choose wisely… (Sorry kids)