Anyone who has ever been in business for very long knows that the most important numbers are not gross profit, but profit margin. You’re better off with $5,000 in sales and $4,000 in net profit than you are if you make $100,000 in sales, but only $3,000 in net profit. This difference is profit margin, and the snow cone business has a great profit margin because of the low overhead per product.
What’s the Profit Margin Math?
The snow cone business has huge profit margins, and because of that many people who buy shaved ice stands find they can make their initial investment back in less than a month…and sometimes much sooner! For any given snow cone you have very low overhead. A paper cup might cost 5 cents each when you buy in bulk, napkins are just under a penny each, while plastic spoons might be one and a half cents each.
Even with the syrup costs added in, the numbers still look very good. Prices vary based on whether you make your syrup from concentrate or buy it pre-mixed, but even then prices might range from 15-30 cents a snow cone at most. Add all of that up, and even if you only charged a dollar for shaved ice and had no up sells, you’d still make 65-70% profit. Very few businesses can say that.
Imagine doing $200 of business in a few hours and knowing three fourths of that was going into your pocket, and that’s not including up sells, if you can charge more than a $1 for a snow cone, or if you find a good deal in bulk buying and save even more in costs.
There are always ways to trim the numbers, as well. You can figure out good up sell products, find a good sale and buy in bulk to take down overhead even more, or maybe your location allows you to have higher prices. There are always ways to figure out how to make your business much more profitable overall.
So How Much Can I Pocket?
So what is the profit potential of a snow cone business? It depends on the sales numbers you’re looking at in your area, the foot traffic, and what prices you can 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 little league game or 500 at a flea market, or even 1,000 during the day at a beach event and you’re looking at some really good days, especially when you’re pocketing well over 60% of the money as net profit. There aren’t many businesses 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 incomes and average prices allow you to charge even more, then that’s even better! Even if you’re set up in an area known for low prices, the sheer profit margin that comes from selling snow cones means you’re going to be having some really good days. One of the really great parts of the snow cone business is you’re looking at a high demand during hot days, and the sheer amount of sales with a high profit margin means you’ll be very happy – especially since every payment is made in cash.
There are many stories of good days where a single owner of a shaved ice cart pocketed upwards of $1,000 in profit. This isn’t a common day – but common days of $300, $400, or more isn’t unheard of from some snow cone cart owners.
Individual areas are going to offer different profit potential. If you’re in an area that has a relatively low population and consistent competition, then the ceiling is going to 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 average income in your area is $20,000 a year, you probably can’t charge as much as you could in an area where the average income is $60,000 a year.
That said, there’s 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 enterprise, and one that can make a great side income, a high quality second job, or if you live in a warm enough climate, maybe even a full time living.
Are you planning a remodeling of your house, including the kitchen? If yes, then you are in the right place. As you read through this you will learn of ways that don't cut a hole in your pocket but give your kitchen a new look. Yes, amazingly, the ways that we will be talking about are affordable but will enhance and update the décor of your kitchen ensuring a new look.
There are many ways to make affordable enhancements to your kitchen décor. We are discussing eight of these to update your kitchen.
1. Updating the kitchen cabinets
If you want, and have the ability, you can replace the kitchen cabinets that you have but why not go with a more affordable alternative and update them to have a new look? Simple changes made to the knobs and the hinges will offer a new look to the kitchen. If you have wooden cabinets you yourself can do the sanding and paint it with a new coat of paint to make your kitchen look great.
2. Purchase cost-effective countertops
If you are not changing the cabinets that you have in your kitchen then you don't need upscale countertops. You can easily find countertops which are affordable and replacing the old one/s with these will give your kitchen a new look.
When you are purchasing countertops keep your mind open regarding materials for the countertop and you will see that there are various affordable options to choose from. By matching the color of the countertop with that of your kitchen cabinet you will be amazed by the new look of your kitchen.
3. Have roll-out shelves
If you feel that having a new cabinet is costly, and the shape of the cabinet that you have at present is not affordable to renovate, then you can easily change to roll-out shelves in place of the old cabinets. They are cost-effective and will also help you to save space and money while giving an entirely new look to your kitchen.
Not only that, such roll-out shelves are also best suited for anyone having issues with mobility. It will make cooking in the kitchen more a matter of pleasure than of responsibility.
4. Play with the light
Lights, and their switches, can play a big role in giving your kitchen a new look without spending a lot of money. As a general rule, you must have warm light in your kitchen. You can easily shop for new light fixtures and switches at budget stores and for an affordable cost you can change the entire look of your kitchen.
You may have seen a decorative light fixture or a unique type of switch in design magazines. If you search you will be able to find a prototype of these for a reasonable price at a store nearby. So, purchase those and you will see how efficiently such fixtures change the entire look of your kitchen.
Have you found an ideal way to make your kitchen look new without spending a lot? If you haven't, then there is nothing to worry about. Here are a few more ideas and, hopefully, you will find one which will match your taste and budget.
5. Re-paint and change the curtains
If you have a talk with an interior designer then you will find that they place high esteem on re-painting and changing curtains when they want to update a kitchen affordably. If you wish to change the color of your kitchen and have a new look then you just need a coat of new paint. It's wise to choose oil-based paints so that it's easier to clean stains.
Match the color of your curtains in your kitchen with the color of the new paint and see what a difference this makes to your kitchen. Curtains need to be changed regularly as they absorb oil and food smells in your kitchen. Follow these two affordable ways and have a new looking kitchen without putting a hole in your pocket.
6. Change the kitchen faucet
Having a new faucet in your kitchen will not only give a new look to your kitchen but would make cooking easier. You can change to a taller faucet so that filling and cleaning big utensils is easier to do. You can have a trendy finish so that the kitchen has a new look.
7. Have a backsplash area
If you do not have a backsplash area in your kitchen or you haven't had one made of old designed tiles then it would be prudent to change those. This option will make cleaning easy and at the same time give a new look to your kitchen. If you feel that purchasing tiles is affecting your budget then you can use the stencil and paint method to have one which will add a new dimension to your kitchen.
8. Buy new appliances
You may wonder if this is affordable. It is you have an open eye and mind when making your purchase. There are a number of organizations making available useful appliances for your kitchen at affordable rates. You can buy these keeping your eyes open so that you get the best value for the money that you are spending.
If you have made up your mind to have a new look for your kitchen then you must have noticed that various sales and discounts are offered by reputed manufacturers of kitchen appliances. You need to grab those options and buy appliances that you need. The appliances will not only make cooking a pleasure but will also enhance the décor of your kitchen.
Hopefully, by now you have found some ways to update your kitchen affordably. You don't need to implement all of the selected options above, simply choose those that suit your taste and budget. If you do we are certain you will have a new-looking kitchen.