Frozen Yogurt Product Cost and Suggested Selling Prices

June 22nd, 2011 by

Are you curious to know about the product cost and suggested selling prices of Frozen Yogurt? This article is an excerpt from our FREE Soft Serve Frozen Yogurt Business Guide – Click the book cover below for details on how to download for free. Product Cost and Suggested Selling Prices Liquid vs. Powder Mixes Advantages of Powder: Disadvantages of Powder: How does the powder product work? LIQUID MIXES Advantages of liquid (frozen, then defrosted) mix: Disadvantages of Liquid Mix Topping Costs – (the million dollar question!) Fruit, candy, etc. The toppings will definitely cost you more than the yogurt. A range is between .10 and .40 cents per ounce – so be very careful in what toppings you choose to offer, since your retail price per ounce is fixed between 35 and 50 cents per ounce. The other “wild card” or “million dollar question” is what the ratio of yogurt to toppings is for the typical customer. In other words, if you’re paying 7 cents an ounce for the yogurt and 20 cents an ounce for the topping, you will be a lot more profitable if the customer goes mostly with yogurt. The good news is that they do. A typical breakdown of yogurt/topping is 75% yogurt 25% topping. After you’ve been open for a month, you will have a much clearer picture of your ratio. Upon further analysis, you can decide if you need to raise the per ounce retail price a few pennies. Where to buy toppings? Costco, Sams, Restaurant Depot, Target, Walmart, Grocery store, etc. Basically, find somewhere that is convenient to buy from on a daily basis and sells candy and fresh fruit at the low prices. Neil Williams President KeyWord Farm, LLC www.TurnKeyParlor.com 877-817-5716 877-632-2210 (fax) equipment@turnkeyparlor.com BLOG My Humble Beginnings in Paradise