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STREET-FOOD BIKE : HOW TO START A NEW ACTIVITY , LOW COSTS AND BIG RETURN ON INVESTIMENT

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In a period of Economic Crisis and Recession, the smartest way to start a business, without taking big risks, is to create a Micro Activity of Itinerant Sale, held on a 3 wheels Cargo Bike.

 Setting up one or more Working Bike, you can reduce costs and protect margins. A tricycle costs much less than a mini van or a Tricar, and requires no Circulation Tax or insurance, nor licence and especially can circulate in the pedestrian zone and old town.

ADVANTAGES OF A MICRO ITINERANT SHOP

These are the benefits that you get in starting an Itinerant Sales Activities:

- Low Investiment, because you can save on equipment and furniture, compared to a Traditional Shop and still  less than a van.
You can set up a Working Bikes starting from 3,700 /4,500 . How much do you need to invest for a Traditional Shop?   A Working Bike, if positioned in the right place, can produce  200 /300 per day.

- Total Elimination of the cost of Rent, which in some cities can vary from 500 to 2.000 per month.

-Total Elimination of Operating Costs such as electricity, Gas, telephone, taxes on signboards, Bureaucratic Costs, permissions, etc.

- Tax Facilities and greater Simplicity in getting permissions than a Traditional Store.

- More Freedom in Deciding Where and When doing your business, and have the option of not having to wait for customers, but go directly to where they are located.

- Ability to Start working "Right Away" or within a very short time. Opening a new Store, always involves long times, and therefore the costs for lost profits.

- Possibility of Enlargement: in case of Success of your Micro-business, you can replicate easily and with little investment your Business Idea, creating for example an "Itinerant Sales Franchising".

- Less Financial risk if your activity does not go according to your expectations. It's much easier to resell a Tricycle Cart for itinerant sales, rather than an activity set in a store. Probably you would achieve at least the value that you have invested.

These are just a few of the  benefits that you can get.   Now we can do some economic calculus to better evaluate your return on investment if you buy a tricycle, built for example for selling Sandwiches :

ECONOMIC CALCULATIONS

PRODUCTS PURCHASE PRICE  WHOLESALER SELLING PRICE UNIT MARGIN DAILY SALES ASSUMPTION TOTAL MARGIN  
             
packaged sandwich 1,10 3,50 2,40 40 96,00  
small bottle mineralwater 0,20 1,20 1,00 50 50,00  
Drink  (Coca Cola - Fanta - Pepsi ecc.) 0,50 2,50 2,00 40 80,00  
             
TOTAL DAILY  MARGIN         226,00  
           
Investiment for Tricycle Sandwich/drink         4.500  
           
Calculation Return on Investiment 4.500  /  226  for Day  =   19,9 Days for to Cover the investiment

This is obviously a simplified example and it all depends on where you are located and which category of customers is frequent in that place. Surely there will be also fixed costs in your itinerant sale (eg. Cost of Concessionato space permits), but surely will be much less than in the case of a Stationary Shop, with costs for Rent, electricity, telephone,

 Based on this example, you can try to redo a calculation based on costs/prices of products belonging to the type of sale that you want to do.

Please, note that the cost of a tricycle depends very much on the type of Setup that you want to do, the models of accessories, refrigerators, machinery, but roughly can be the following:

-  Tricycle for sale of Pre-packed Sandwiches and drinks                  da 3.500 a  4.500

- Tricycle for sale of Pre-packed Ice Cream                                    da  3.000 a  4.500

- Tricycle for sale of Artesan Ice Cream ( cylindrical buckets)            da   3.800 a 8.500

If you have  good manual Skills, it will be easy to create by yourself your Working Bike, and create a stand for the Itinerant Sale of various products.

The CYCLOPE is the most useful Tricycle . It has a very spacious floor (92 cm x 119cm) made in square tubes (oversized compared to other models) and is suitable to serve as  basis for heavy equipment mechanics, Ice Cream Carts, Insulated or Refrigerated Containers, Micro Shop  for itinerant food Selling  and other things. It can Charge 300 Kg and, despite its size, thanks to a strong Shimano gear, is very light on the pedal, to the point of leaving surprised anyone try at full load.

 

Thanks to Windshield with sunshield, cargo tricycle can also be used in winter and rainy days.

 

 Learn how to set up your Mobile Cart for sale

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