Real Estate

What is the profit potential of a snow cone business?

Anyone who has been in business long knows that the most important numbers are not gross profit, but profit margin. You are better off with $5,000 in sales and $4,000 in net profit than if you make $100,000 in sales but only $3,000 in net profit. This difference is the profit margin, and the snow cone business has a great profit margin due to low overhead per product.

What is the math of markup?

The snow cone business has huge profit margins, and because of that, many people who buy shaved ice stands find they can recoup their initial investment in less than a month…and sometimes much sooner! For any given snow cone, it has a very low overhead. A paper cup can be 5 cents each when purchased in bulk, napkins are just under a penny each, while plastic spoons can be one and a half cents each.

Even with syrup costs added in, the numbers still look very good. Prices vary depending on whether you make your syrup from concentrate or buy it pre-mixed, but prices can still range from 15 to 30 cents per snow cone at the most. Add all of that up, and even if you only charged a dollar for shaved ice and had no upsells, you’d still make a 65-70% profit. Very few companies can say that.

Imagine doing $200 worth of business in a few hours and knowing that three quarters of that will go into your pocket, and that’s not including any upselling, if you can charge more than $1 for a snow cone, or find a snow cone. good wholesale offer. shopping and saving even more on costs.

There are always ways to trim the numbers, too. You might discover good up-selling products, find a great deal, and buy in bulk to further reduce overhead, or perhaps your location allows you to command higher prices. There are always ways to figure out how to make your business much more profitable overall.

So how much can I bag?

So what is the profit potential of a snow cone business? It depends on the sales numbers you are seeing in your area, the foot traffic, and the prices you are able to charge. But the huge potential of the business comes from the high profit margin. How much can you charge per snow cone?

Even if you can only charge $2 a snow cone, sell 100 in an hour at a minor league game or 500 at a flea market, or even 1,000 throughout the day at a beach event and you’ll see some really good days, especially when you are pocketing more than 60% of the money as net profit. There aren’t many companies where you can count on pocketing a hundred or several hundred dollars in cash for a few hours of work just a week after starting.

If you’re in an area where average income and prices allow you to charge even more, that’s even better! Even if you’re set up in an area known for its low prices, the high markup that comes from selling snow cones means you’re in for some really good days. One of the best parts of the snow cone business is that it’s in high demand during the hot days, and the large number of sales with a high markup means you’ll be very happy, especially since every payment is made in cash on cash.

There are many stories of good days where a single shaved ice car owner pocketed over $1,000 in profit. This is not a common day, but common days of $300, $400 or more are not unheard of for some snow cone cart owners.

area affairs

Individual areas are going to offer different earning potential. If you are in an area that has a relatively low population and constant competition, then the ceiling will be lower than if you live near a city park that always sees a lot of people in the summer but has no competition. If the median income in your area is $20,000 a year, you probably can’t earn as much as in an area where the median income is $60,000 a year.

That being said, there is always spare change for a snow cone during the summer, and no matter where you live, the profit margins make a well-run snow cone business a very profitable venture, and one that can generate a great income. Plus, a high quality product. second job, or if you live in a warm enough climate, maybe even a full time life.