WolfGang Puck Profit Margin

Discussion in 'Professional Chefs' started by dagger, Jan 30, 2006.

  1. dagger

    dagger

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    He has been on HSN all weekend and we were talking on just how much money he makes for this. My sister figures he makes billions but i don't think he profits is that much. Stainless steel is very expensive and his whole set sells for what one All-Clad pan does. Yes i know there is a big difference in quality but still cost to make. Even his electronic items cost money to make like the FP or electric griddle. He sold a 5-piece Santoku Cutlery Set 3", 5", 7" and 9" lengths with block for $29.99 and I’m sure he's not making a ton of money per set for That price but they said sold 60 thousand of them. SO what do you figure he makes for a weekend of work?
     
  2. markv

    markv

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    Of course there are outliers at both ends but the average business in America, (at least according to my macroeconomics courses many moons ago), makes less than a 10% profit margin.

    All businesses, inlcuding Puck's have a multitude of hidden costs. It's not just what the raw materials cost but the cut HSN gets, advertising costs, insurance, business managers, administrative asssistants, licensing fees, and a zillion other nickel and dime costs.

    I'm sure he's making money but probably not as much as it would seem on the surface.

    Mark
     
  3. chefa1a

    chefa1a

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    I was actuallly flipping through the channels and saw this

    I was kind of interested in the grill he was using

    a foreman-esc grill that seemed to have some good wattage for searing

    when I go to do charity events and cooking demos, I like to bring foreman grills and crockpots to show people you can do cooking with every day household items. It was funny what Wolfgang said too, he goes to cater parties in Bevery Hills or Posh Mansions and you cant use their cooking ranges, they're only for show. I did a party like that, the lady didnt even want me to plate on the wooden counter it just got finished, I had to line it with 10 layers of parchment

    lol

    As far as profitability, Im sure he works on the numbers would you rather have 10% of 60, 000 or 30-40% of 5 or 10 thousand??

    I think his stuff is better than Emeril's, he'll put his name on anything to pay his ex wifes