How to Choose the Best Night‑Market Stall Product and Pricing with Math Modeling

Step 1: Choose What to Sell

Five candidate products were evaluated: milk tea, pancakes, fried skewers, accessories, and phone cases. Customer preference percentages are 45% milk tea, 30% pancakes, 15% fried skewers, 8% accessories, and 2% phone cases. The target demographic is 80% young people with a budget of 10–30 CNY.

Profit margins and competition intensity (number of stalls) are:

Milk tea – 40% margin, 2 competing stalls

Pancakes – 35% margin, 4 stalls

Fried skewers – 50% margin, 2 stalls

Accessories – 60% margin, 1 stall

Phone cases – 70% margin, 1 stall

Using a weighted scoring formula that combines demand share, profit margin, and competition, milk tea receives the highest overall score and is recommended as the flagship product.

Step 2: Supplier Channel Selection

Three wholesale markets (A, B, C) were compared for raw‑material price, transportation fee, and distance. Daily demand is assumed to be 30 kg.

Market A – 20 CNY/kg, 50 CNY transport, 5 km

Market B – 18 CNY/kg, 70 CNY transport, 15 km

Market C – 15 CNY/kg, 100 CNY transport, 25 km

When total cost (material + transport) is calculated, Market C yields the lowest cost, though longer distance and time should be considered in the final decision.

Step 3: Pricing Strategy

Customers are willing to pay between 15 CNY and 25 CNY for milk tea. Regression analysis of historical sales data provides a demand‑price relationship, and the profit function (cost per cup = 8 CNY) is derived.

Optimizing the profit function gives an optimal price of 19 CNY per cup, resulting in the highest daily profit.

Step 4: Stall Location Choice

Three possible stalls (A, B, C) were evaluated for daily foot traffic and monthly rent:

Stall A – 500 people/day, 3000 CNY/month

Stall B – 700 people/day, 4500 CNY/month

Stall C – 600 people/day, 4000 CNY/month

Calculating rent per customer shows Stall A has the best cost‑per‑customer ratio, so it is recommended.

Step 5: Promotion Strategy

Two promotional schemes were simulated for 100 customers:

Scheme A: Spend 20 CNY, get 5 CNY off – average order value 24 CNY, order volume +30%

Scheme B: Second cup half price – average order value 27 CNY, order volume +20%

Profit calculations indicate Scheme A yields higher daily profit, so it is the preferred promotion.

Conclusion : The case demonstrates that street‑vendor entrepreneurship requires systematic planning—from product selection and supplier sourcing to pricing, stall location, and promotions. Mathematical modeling provides a rigorous tool for making rational, data‑driven decisions.