What’s the better option, making your own ice cream or buying and reselling 3 gallon tubs of a recognized brand? Truthfully, there is no right answer. Both could be great options. This post will simply to outline reasons why you would go in one direction vs. the other depending on your specific situation and your specific goals.
This question is frequently debated and asked by almost everyone planning to enter the ice cream store business. In my opinion, it depends on many factors. I encourage those of you who make your own or buy a national brand in 3 gallon cans to post what led you to your specific strategy.
I’ll start with the benefits of buying a national or strong regional ice cream brand that is pre-packaged in 3 or 2.5 gallon round tubs:
- People like to buy what they are familiar with
- Initial investment is lower – you only have to buy dipping cabinets and storage cabinets vs. a batch freezer, hardening cabinet, dipping cabinets, etc.
- Less machinery means less utilities expense
- Product consistency – making your own can also be consistent if you are the only one doing it, but once you have employees start making ice cream too, it can get tricky to maintain that consistency
- Simplicity – no manufacturing labor - you buy 3 gallon tubs from an ice cream distributor, you drop them in the dipping cabinet and scoop away
Ok, now we move on to why making your own ice cream might be the best choice:
- Cost – normal markup on ice cream you purchase from a distributor allows you to make around 70% gross profit when charging what the market will bear. In other words, if you charge $2 for a scoop, your cost is about $.60 for that scoop. When you make your own, the materials cost is much lower. That $2 scoop should cost you more like $.30-$.40. If you make Italian Ices, your cost is even less
- Exclusivity – Only YOU can sell your ice cream. Customers can buy national brands in many parlors and can also pick them up at the local grocery store
- Variety – With an Emery-Thompson Batch Freezer, you can make not only ice cream, but you can also make your own Italian Ice and Gelato.
- Homemade - People love homemade ice cream. Customers like the idea that the ice cream is made fresh and with a local twist to it. Customers like to see and know the owner of the business
- Creativity – You can invent new flavors. You can make changes to the product suit your region’s tastes. You can hold contests for new flavors using social media tools. The options are limitless
- CLICK HERE FOR INFO ON BUYING PLASTIC ICE CREAM CONTAINERS
As you can see, the decision to make your own or purchase a pre-made product depends on many factors. You can make good money with both options. For those who are on a tighter budget, the best option might be to start with a pre-packaged product. For those of you who are creative and have the necessary start-up financing, you might want to consider making your own.
Look forward to hearing the comments and stories of those who have made the decision one way or another.
Interested in attending a FREE, live webcast on how to make ice cream, gelato and italian ice? Click the link below to read more and to sign up if you’re up for it. Don’t forget to come back here and post your comments!
Thanks again for reading this post!
Neil
CLICK HERE TO SIGN UP FOR FREE, LIVE WEBINAR ON HOW TO MAKE ICE CREAM, GELATO AND ITALIAN ICE
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You keep amazing me with your continued expansion on the web. I brought a dip cabinet from you and opened my store this past March. Everything is going great and the cabinet is the best I could have found. Thank you and I look forward to doing more business with you.
Thanks for the kind comment Laura. It’s customers like you that have made our business grow and allowed us to build our presence on the internet. Glad to hear that the dipping cabinet and equipment you purchased from Turn-Key Parlor has been good to you. I guarantee to offer the best value for the dollar possible and lower prices than going direct to the manufacturer. If you ever see something that seems like a better deal elsewhere, please bring it to my attention.
Good to hear that the store is doing well and here’s to a great 2010 selling season!
Thanks,
Neil
Neil Williams
President
KeyWord Farm, LLC
http://www.TurnKeyParlor.com
877-817-5716
sales@turnkeyparlor.com
Neil
I find your blog and your website both very helpful. I opened my store last May. It had been on my “bucket list|” for about 30 years. It was a blast and I look forward to opening again this spring. I buy all my ice cream from a premium creamry that is very well known for its quality products. I overcome the fact that other retail outlets can buy the same product by offering over the top customer service, generous portions and stocking over 70 flavours (which nobody else even comes close to). I will slowly expand into Italian Ices and soft frozen yogurt this year and next. Because of the much larger margin in making your own ice cream and the creativity it allows I would like to do that eventually. Your, comments about consistent quality day in and day out, are a concern as is the large capital investment for the equipment and freezers. In Western Canada this is a very seasonal business.
Great post Vern. I appreciate the kind words. Sounds like you’ve definitely differentiated your store from the typical ice cream store. The large variety is a big plus, one that is very difficult to meet when you are making your own. Kudo’s to you for going over and above to give the customer a truly special experience when they go in your parlor.
Thanks again for the great post.
Neil
Neil Williams
President
KeyWord Farm, LLC
http://www.TurnKeyParlor.com
877-817-5716
sales@turnkeyparlor.com
Neil, I’m in the “saving stage” of opening up my own ice cream shop, but I find the blogs very helpful as to how I want to structure the business. I’m enjoying making test batches in the kitchen, and can’t wait to have all the start-up funds together to jump in to the ice cream business. Thanks for providing the forum for all the great stories and advice!
Thanks Kate. Glad to hear that you find our blog helpful. Look forward to talking to you as you get closer to realizing your goal.
Kate any chance your in NJ, i have a nice shop but because if illness i may look for a partner.
We opened our store just over a year ago, and things have been really good for us. We choose to buy from a distributor instead of making our own. The concept of this business was simplicity- after selling our full line bakery and gourmet deli, we wanted something that didn’t need us as much. Our concept is simple and easy to follow, allowing our employees success and time to enjoy our customers. It’s great to finally take time and ivestigate this web site, very cool.
Excellent post Sara. Glad to hear that things are going well with you guys since you opened your store.
As I mention in the post, there is no right or wrong answer to deciding to purchase ice cream from a supplier or deciding to make your own. You can be very successful either way if you do what needs to be done. Making your own requires a higher level of commitment, and if that’s not what you want out of your business, then definitely, buying and reselling is the way to go.
Thanks for the kind words about our website. I put a lot of time into trying to offer information that is worthwhile and appreciate when others see value in what we are doing.
Thanks!
Neil
Neil Williams
President
KeyWord Farm, LLC
http://www.TurnKeyParlor.com
877-817-5716
sales@turnkeyparlor.com
Hi Neil and thank you for your help getting us set up. The decision to convert some under used corner space into a little “Ice Cream Shoppe” was made so much easier by you and your team. I am happy to report that we are generating far more income then we had projected and are already considering expanding the concept. We were previously using the space to sell greeting cards and gift wrap style items. Ironically enough we now sell MORE of those items since making Ice Cream the focus. Cheers Matey!
Hi, I’m a college student looking to earn some money pushing an ice cream cart around campus. Do you know of any good websites to buy wholesale ice cream or any other advice? Thanks!
-Ben
Ben:
Try calling Edy’s ice cream of Atlanta (I think from your email address you are in GA, correct?). Edy’s offers ice cream tubs and a variety of novelties like Haagen-Dazs bars, Drumstick’s, Dibs, Tollhouse cookie sandwiches and other stuff that sells really well.
Thanks for the post.
Neil
Ben,
Where are you located? If you have gotten your cart started I would like to see your operation.
Thanks
Randy
I’m not an ice cream store, so before i take this any further, how much will it cost to get involved at the lowest level?
Clyde
Hi, great blog!
I currently own and operate a full scale restaurant where we make a lot of our own items from scratch. What is the difficulty of making ice cream and italian ices? Thanks for the great info!
It’s not difficult to make italian ice. Sign up for one of our live webcasts and you’ll see.
neil thanks for the info i do not have a shop YET i am working hard on it, but this is something i have been asking myself witch way to go i would like to make my own but i dont want to be there working 24-7 eather found a great place to put a shop the only comp. is DQ these pepole will take anything new. so i think i know witch way to go now
thanks
Best you should make changes to the webpage subject title Make Your Own Ice Cream or Buy 3 Gallon Containers from a Distributor? | Ice Cream Business Blog to more better for your blog post you create. I liked the post withal.
After thirty years there are many times I think back to when we bought our 3 gallon tubs vs starting to make our own. If I could do it all over again, I would find the best ice cream posible and buy the tubs of ice cream. The main reason is the time it takes us to produce the ice cream sometimes to early morning hours to get ready for the next days business. We don’t stock up as we produce from fresh cream daily. At least at the beginning I would but the ice cream.
How many scoops can you get from 3 gallons ice cream?
Bob,
The ice cream suppliers will tell you that a 3 gallon tub will yield about 55 four ounce scoops. The average scoop size is supposed to be four oz.
That said, employees will most likely over serve the customers, so the average scoop might be more like 5 ounces. So the answer is about 44
scoops. The bottom line is you really won’t know exactly how many scoops you get out of a tub unless you actually do the exercise, and actually
sit there and scoop out the ice cream until the tub is gone. So….since you probably don’t want to do this, just count on around 44 scoops and price
the per scoop accordingly.
I would like to get a cart…sell at the local farmers market – I want a cart that is colorful & inviting w/a cool name (how do I create)…I live in HHI,SC, do u know of a good ice cream distributor nearby??
Recently I read some articles about ice cream made from River Water Buffalo milk. According to the articles the flavor is more delightful than that made from cows milk. Does anyone have any experience or informaion in the making of Water Buffalo ice cream and/or yogurt?
I am currently a professional clown who is planning to make my own ice cream. I just completed Penn State University’s Short Ice Cream Course which was highly recommended by my State Health Dept. Penn State took me from “the cow to the cone” in one full week. I strongly recommend the course to anyone who is planning to make their own ice cream, gelato, or Itallian Ice. All of the questions that I’ve seen on this site were answered during the training and then some. The class is given once per year, in January, and costs approx. $1800.00 plus lodging. The instructors/presenters were truly awesome and the feeling of success was in the air. Currently, I’m in the process of looking for a great location in Baltimore County. Feel free to contact me for more information on the Penn State Short Ice Cream Course. It was money well spent!!!
Hey my name is Scott I would no more info on the penn state ice cream class I was thinking of taking it e- mail me @ powerlock04@hotmail.com
Hi, I am from Qatar,I am interested with your ice cream machines. May I know where is your location please.
Thank you very much! Hope to hear from you soon.
Eman
Business, a lot more than some other occupation, is often a continual dealing with the longer term; it is just a continual calculation, an instinctive exercise in foresight.
Many men meet with failure because of the lack of persistence in creating new intends to replace people who fail.
good day/night sir, i am a 27 year old man my mom has a lil ice cream business in the caribbean trinidad and tobago/ tobago. she have been selling ice cream for as long as i could remember she is get down in age and i would love to take it over or investing it before she cash out so u know change thing up a bit. i saw ur dip pin cabinet looks great, ishe currently buys her icecream, but i want to change that in soon, an begin making homemade, or customas are mostly tourist from u.s, canada , euro and where ever they may come from. question? what curency is ur price. do u ship to the caribbean (trinidad and tobago). looking forward to do business with u thanks.
In my experience, franchising became very successful rather than making my own homemade ice cream. On the past few years, me and my husband invested our money to buy ingredients and raw materials for our ice cream, But the ROI is low and we have to shut our business. After few more years, we made a franchise business to a ice cream company and sold their products. Miraculously, the business gained a lot of people buying it (especially children) since our kiosk is near a school and park. So in my case, I’m voting on franchises.
Nice blog though, really enjoyed reading it.
Yup. I agree with you Lucy. There could really be great benefit in franchising since that they already had established there name. They have gained popularity.
After reading the reviews on Turnkey Parlor I because more confident in my decision to go with them for all my water ice needs. Although I’ve found all information posted to be helpful in every way, the customer service has been a let down. I ordered the BD6-CD-03 which arrived in a timely manor and looked great, unfortunately my cart arrived without the canopy. Causing me to do gigs without it. While trying to contact the company in regards to this issue I’ve gotton no solid answers and no returned phone calls. No one seems to be knowledgeable on the issue. I would love to continue using turnkey Parlor for my future needs but wish there customer service was as high quality as their product.
Signed
Unsatisfied customer
But a smiling visitant here to share the love (:, btw great style and design.
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