Running a mobile vendor business—whether it’s a coffee cart, food truck, or mobile bar—means adapting to an ever-changing environment. Events vary, crowds fluctuate, and sometimes, expectations don’t meet reality.
While spontaneity can be exciting, it also presents a financial risk. That’s where a Minimum Sales Policy becomes an essential part of your vendor strategy.
What Is a Minimum Sales Policy?
A Minimum Sales Policy is a simple agreement between you (the vendor) and the event organiser. It sets a minimum amount of sales you expect to make at an event.
If you don’t reach that amount, the organiser agrees to cover the shortfall. > Example: If your minimum is $500 and you only sell $300 worth of product, the organiser pays the remaining $200.
Why It Matters
1. Protects Your Bottom Line
Travel, setup, stock, staffing—it all costs money. Attending an under-promoted or poorly attended event can lead to a significant loss. A minimum sales agreement ensures you’re not left out of pocket for simply showing up.
2. Filters Serious Event Organisers
Event hosts who are confident in their turnout and communication will be more than willing to agree to a minimum sales policy. Those who hesitate may not be able to guarantee a quality event—which lets you evaluate opportunities more clearly and avoid the “duds.”
3. Encourages Better Promotion
When organisers know there’s a financial incentive to meet expectations, they’re more likely to put effort into promoting the event, communicating with attendees, and supporting vendors.
4. Sets Clear Expectations
Miscommunication is a common issue between vendors and organisers. A minimum sales agreement sets a professional tone and ensures both parties are aligned on goals and responsibilities.
When Should You Use It?
A minimum sales policy is especially important for:
- First-time or untested events where there is no historical data.
- Smaller, volunteer-led events where organisers may not be aware of vendor requirements.
- Situations where exclusivity (e.g., being the sole coffee vendor) is expected but not guaranteed.
How to Implement It
- Create a Clear Agreement: Use a simple, easy-to-read document that outlines the minimum sales amount and the organiser’s obligation to cover the shortfall.
- Communicate Early: Introduce the policy during the event planning stage—not as a last-minute requirement.
- Be Fair and Transparent: Choose a reasonable minimum amount based on your past event performance and what you need to break even.
- Work with the Organiser: Encourage the organiser to promote your attendance. A simple mention in an email or social media post can make a big difference in hitting that target.
Final Thoughts
A Minimum Sales Policy isn’t about being difficult — it’s about running a smart, sustainable business. By protecting yourself from unpredictable events, you ensure your time, product, and energy are invested in opportunities that actually benefit your business.
Have questions about implementing your own policy or want help tailoring it to your business? Feel free to reach out! We’re happy to support fellow vendors!