One of the first questions people ask about a snow cone stand is how much money can you make. Of course, how much money can you make is a natural question for someone considering starting a snow cone stand, but the answer to that question depends on several factors.
The main factors to consider are the following;
1) Your Geographic location. Snow cones sell best in areas where it is warm and hot much of the time. When the weather turns cool or cold the demand for them goes down. In the US places like southern California, Arizona, southern Texas and Florida probably have the longest snow cone selling seasons. And of course the longer each year you can stay open the more money you will make.
But snow cone businesses can do very well in other US states also. In the US any of the states bordering the Gulf of Mexico are good places for snow cones. In those states the season typically kicks off in mid-April and runs into September. The further North you go to other states the shorter the selling season due to the cooler climate. But during the summer months anywhere it’s all on for snow cones.
2) Your business location. Deciding where to put your snow cone stand is the most important decision you’ll make relative to making money. It is a “make or break” decision for your stand and must be made well if you want your stand to be a money-maker year after year.
3) How much you charge for your snow cones. Obviously a no-brainer but there are some things to consider here. Just about everyone loves snow cones but how much you can charge for snow cones can vary depending on where the stand is located. Generally in more affluent areas you’ll be able to charge more money for them than you could in less affluent areas.
4) How much you pay for your supplies. The cost to make snow cones is generally quite small as compared to the price you can sell it for. Still the more you pay for your supplies the less your profit percentage will be. And of course making money is why you want to do it in the first place, right?
Find a wholesale supplier of what you need and purchase in large quantities when you can to get the cost down. You can even experiment with making your own flavored syrup. The lower your costs the more money you’ll make on each sale.
5) How much overhead expense you have. There are things to consider like employee cost, utilities and taxes. You should also take into account how much you pay for your stand. Buying a prebuilt stand can be expensive and a monthly note on it will be part of your overhead, unless you pay cash. If you don’t own the property your stand will sit on, how much will it cost to purchase, lease, or rent the location? Your rental and lease will add to your overhead as well.
The profit potential in snow cones is large and because the mark-up for them is high it is possible to make a lot of money as compared to the typical startup cost for a good stand in a good location.
If you sell a snow cone for $2.50 you might make a gross profit of $2.20. If you sold 100 of those snow cones each day for 6 months out of the year, and operated the stand yourself, you would have a very nice part-time money-making business. Probably around $40,000 out of which you would subtract your overhead, some of which you may incur over the whole year, such notes, utilities, and rent. It is possible to start such a stand for as little as $5,000 or $6,000 if you build it yourself!
Imagine if you were a retired person and could add such a snow cone stand to your social security and other assets you may already have! Nice! And its possible to make two or three times that much or more in a good location!
Just remember, what will “make or break” your stand is most often Location, Location, Location!
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