​DOS VECES AHUMADO
Twice-Smoked Hot Sauce

JOE'S

Twice-Smoked Recipe​​​​​

True Mesquite Flavor​​


The Small Business Fallacy
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The foundation of our capitalistic economy is: if you have a great idea and the fortitude to get it to market, then you will develop a customer base, increase your market size, and generate revenue. And more customers will result in more sales and more revenue.

Lather. Rinse. Repeat.

This model only works if you have limited liability, substantial sums of “seed” money to start the business, and investors to provide you with the additional financial resources to grow the business further.

Otherwise, the costs to run the business, the constrictive regulations and fees, and the taxes to continue the business will choke you out of existence.

That is the fallacy that I have learned over the past three years.

My passion has been to make a unique, flavorful pepper sauce that is “twice smoked” – unlike any other picante/hot sauces on the market. Yes, it is made in small batches with a significant amount of labor (some would call it “love”) cost, but the selling cost of this product is not outside what the customer is willing to pay. I have received much praise for my pepper sauce, but one thing I have never heard is “it’s too expensive.”

But the simple free-market, “business to customer” relationship – is not the problem. To make a processed food product, you must make it in a state-inspected kitchen. So, you must pay rent for a commissary kitchen. Then there is the permitting, insurance, inspections, licensing, etc. And there is the cost of the materials: “woozy” bottles, caps, labels, shrink-wrap, sanitizing materials, preparation equipment, etc. These costs are significant and are exponentially more than the cost of the ingredients that go into the bottles. The same drivers that add to the cost of my product.

Add to that - the taxes…the sales, excise, business – even a litter tax. As you celebrate your business growth and the sales exceeding your forecasts, you must remember that with taxes “the more you make, the more they take.”

The fallacy is - in a true free-market economy, you can indeed be quite successful. The truth is - in today’s small-business framework with all its regulations and taxes, to make a little money you need a LOT of money.

In all honesty, the journey was a lot of fun. The joy associated with presenting my products in Farmers’ Markets, the positive response in sampling my sauces, and the creative suggestions on what to add the sauces to different foods was simply amazing. I deeply appreciate how you have helped get my product name and exposure out there. Thank you!

But after three years of effort, this model for my pepper sauce business cannot continue. The funding for my business model is entirely from my personal retirement, and I cannot afford to risk my very future existence in a business that is constrained so much by regulations and taxes. Lesson learned.

All-Natural Ingredients

An Artisan Hot Sauce

Joe's Dos Veces Ahumado (Twice-Smoked) Sauce comes from all-natural ingredients using a unique smoking process to bring out the true mesquite essence - no artificial flavorings or additives.

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