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Some biz insight... [Archive] - The Hot Pepper

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DevilDuck
02-12-2008, 12:35 PM
Geez... I took a class last night at a commercial kitchen that's run by the City of Albuquerque. I really didn't learn anything new, but it was good to see I've been researching all the right stuff. Oh..there was this little tidbit on tracking your batches and batch ingredients, batch variants, supplier tracking, distributer tracking, and mass customer tracking....you know, the "fun" part of running a business.

Anyway, on the way home, I started crunching numbers. Probably not the best thing to do before business starts, but I was just running some numbers through my head. All I could come up with was spend, spend, spend. Then I started thinking about how many bottles sold would cover the cost of this, that, and the other.

The only thing I can say... I hope everyone on this site buys 8 bottles of each sauce every week for 3 years!!!

For those of you looking to go into the business of selling your sauce, salsa, dry rub, etc., be prepared to shell out some money...lots of it. There are fees for EVERYTHING. So far, the only free thing I found was filling with the FDA for the Bio-terrorism Act.

New Mexico is pretty lenient as far as package labeling goes, but... It all has to be approved by the Health Department. So, think twice about calling your product "Ass Magma". Especially when using a city run facility.

Another thing you have be aware of, is how you're going to store your finished product. I'm not 100% clear on this yet, but from what I can gather, I may not be able to store my finished product at my house. Yep... I may have to rent a spot to store everything before shipping it out. That means, even though I'm running my business out of my home, I have to go somewhere to pick up my bottles, pack them, and ship them. So, even though you might be thinking of using a co-packer, you have to be able to store your product in an approved space. Ask your co-packer if they can store product for you and how much it will cost.

Your recipe.
As much as you and all of your friends love it, it will be scrutinized by the Health Department. They will want a complete rundown of how it all comes together. New Mexico likes to have a flowchart that separates out your perishable, non perishable, and non food (bottles, jars, caps, lids, etc...) and shows how everything comes together as well as the Critical Control Points of the process. A CCP can be something as simple as, "Make sure temperature reaches 195F and stays at that temperature for 15 minutes." Or, "Sterilize Bottles".

In other words, they don't want a recipe written down that looks like it came out of a cookbook.

Mass Quantities.
I don't know about the rest of you, but when I make sauce in my house, the recipe is for maybe 25oz. That's 5 woozies. Easy to control, easy to bottle. When it's time to make the big step of "going pro", your going to be making gallons of this stuff. Common sense tells you to just multiply your recipe to make it work. Well, if you have any kitchen experience, you know that's not the case. You're going to have to make practice runs to get it right. Your garlic may be off a bit, or too much vinegar. You'll have to figure out how to adjust your mass recipe so it tastes like your small homemade batch. So, get it right before you submit anything to be approved...and that includes your Ph levels.

There's a lot more to it, but this post is getting long. I just wanted to share a little bit of what I'm looking at so all of you can enjoy what I have to offer.

Dyce51
02-12-2008, 01:17 PM
aahhh the fun stuff!! I know when I checked with the FDA they had told me that I must store the product where it was made...and all 3 of the facilities have storage capacity (for short term storage). They expect you to make it then sell or distribute it quickly.

DevilDuck
02-12-2008, 10:06 PM
Yeah, I can see that. However.... It's not feasible for me (just yet) to make a 20 mile round trip just to retrieve some sauce to ship.

If I'm headed that way to make a batch, then I can grab what I need to ship on my way home. But, I'm just trying to save money I haven't spent yet. Catch my drift?

Dyce51
02-12-2008, 10:39 PM
Oh yeah I hear ya DD...thats the big problem I'm having as well...it's a money game! Really kinda sucks....they make you jump through all these hoops and red tape just to get your sauce out...I know some of it is for our own good and safety but it's getting to be over kill...If I'm not mistaken the fda also said something about "approved storage" as well. I will have to check on that again. I have been working with a gentleman at the FDA he sent me a good deal of information as well....I can start a new thread and post the email he sent to me...it's full of links and info...

DevilDuck
02-12-2008, 10:46 PM
The really hard part is trying to predict what your first "pop" is going to be. I couldn't tell you how many bottles of what flavor I'll be selling in the first two weeks. I have a good idea, but I'm probably really on the low side.

Then, when things go down to a normal level, what do I need to produce to maintain a small stock?

Ugh... I hate math.

Dyce51
02-13-2008, 12:49 AM
LOL....almost gives ya or it does give ya a headache!!!

DEFCON Creator
02-13-2008, 03:18 AM
Well said DD, it seems you are grasping the concept(s) nicely. It's a scary jump from small batches to let's say 50-100 gallon batches, and you're absolutely correct that it's not just multiply the ingredient amounts by 50 or 100, it should be, but then it would be easy, LOL!

Hey, bring all the questions you have to Fiery Foods. We'll sit down over a couple of beers, and I'll help you out as best I can. Seems like you're on the verge of "taking the plunge". Once again, I wish you the best of luck in your endeavor.

shayneyasinski
05-26-2008, 01:06 AM
Just a little light on the subject or light at the end of the tunnel is that after you jump all them hoops you are a legit hot sauce seller that can go up agaist the big boys that you see in the big stores like walmart and so on.
just think....... a 12000 bottle standing order per month for walmart....

we also live in a time where these niche market sauces are what chain restraunts are getting into, what the f!@# was bullseye a few years back??

I would hit up chefs like Puck and Ramsay with free samples that may end up on tv or as there main dishes hot secret..

good luck