Your Ice Cream Business: Cost Per Scoop Analysis
June 23rd, 2011 by Neil Williams
How do you set up and organize your new ice cream business? This article is an excerpt from our FREE Ice Cream Business Guide – Click the book cover below for details on how to download for free.
COST PER SCOOP ANALYSIS:
In general, parlor ice cream is packed in 3-gallon tubs. Edy’s, Breyer’s, Blue Bell and most premium brands come in 3 gallon, round cans. A ballpark figure as far as cost is concerned is about $30/tub for premium ice cream. Some companies charge less for Vanilla, Chocolate and Strawberry and a little more for everything else. The $26 is a good average figure for premium ice cream. You are supposed to get 55 four-ounce scoops out of a 3-gallon tub. This works out to .47 cents per scoop. I like to add 8 cents to the cost to cover waste, giveaways, etc. So were looking at .55 cents per scoop. Many companies will try to manipulate these figures in their best interests, but I can tell you from experience that the $.55 per 4 oz scoop is pretty reliable. Add another 5 cents for cup and spoon or the cone for a total of .60 cents per scoop. Very doubtful that in real life it works out to be any less, even if you are paying a few bucks less for the tub. Cheaper tubs usually have more air whipped in and you yield less, therefore having the same or higher cost when it comes down to it. My recommended retail is $2.00.
$2.25-$2.50 isn’t out of the question, but might be too much depending on the area. You are in this to make money, so do some competitive research in your area and make sure that you start off as high as the market will seem to bear. Raising prices later because you realize you aren’t charging enough is never good, so make sure you pay particular attention to your pricing strategy right off the bat. The majority of new business owners make the mistake of not pricing their products high enough. Don’t let this be you. A $2.00 retail makes the COGS (cost of goods sold) 30%. (.60/$2.00 = 30%).