SNOWBALL MARKETING TIPS

LOCATING YOUR BUSINESS:

1.

Kids love snow balls.Parking lots of shopping malls, department stores or supermarkets are hot and create impulse sales for snowballs that may have been lost inside the air-conditioned facility. Parents who have denied their children expensive purchases inside the shopping mall may treat the same children to a snowball upon leaving. The children are exposed to the possibility of a snow ball before and after the shopping mall experience. The parents will also be your customers after they sample their children's snow balls.

Lease or rent payments for space in these parking lots are sometimes negotiated so that the payments are reduced during the winter season while the snow ball sales outlet is closed.

2.

Locations across the street from shopping malls, department stores or supermarkets will benefit from the advantages of these high traffic areas. Pedestrian access and parking are important considerations for such a location.

3.

Inside shopping malls, department stores or supermarkets are high traffic areas suitable for snow ball sales.

4.

Highway locations with ample parking and some neighborhood access are desirable.

5.

Fast food outlets can also sell snow balls as an additional item.

6.

Parks and tourist areas produce customer interest in the novelty of a snow ball.

7.

Mobile units can also sell snow balls. It is best to have the mobile units conduct regular hours at specific locations rather than roam the streets. Direct current 12 volt motors are available to power the Southern Snow Machine with a 12 volt deep cycle marine battery.

8.

Neighborhood snow ball sales outlets create sales quickly that peak at an early date during the season.

9.

Special events sometimes provide high volume sales. The most succeasful events for snow ball sales are food festivals and any hot day events such as race tracks and rodeos.

The earlier above mentioned locations seem to be more desirable than the later. Ample parking and access is always important. There is no guaranteed successful location. Each site needs to be considered for its advantages as well as its disadvantages. There are some special event snow ball sales outlets that sell as many snow balls in one week as some prime locations sell all summer. Location is one of your most Important decisions when starting a new business.

 

PROMOTING YOUR BUSINESS:

Pennants draw attention.Signs are your first step. The more signs and the bigger and more colorful the better. Colorful triangle pennants strung above the snow ball outlet will draw customers.

A day of free snow balls will certainly draw crowds. Your cost on 100 eight ounce snow balls will be under $15.00. Kids are your first customers. As the parents sample the kids' snow balls your customers will be composed of half kids and half adults.

Circulars distributed through neighborhoods, office buildings and parking lots will create customers. If you are creating a new service for a community, you may have a story eligible for free publicity through local newspaper articles.

DETERMINING YOUR COST:

Snow Ball Syrup Formulation & Cost:

6 lb sugar + 2 qt. 6 oz. water + 4 oz. flavor = 1 gal. (6 lb. x $.35) + 0+ $.68 = $2.78 a gallon. The current sugar price is $.35/lb. One gal. of flavoring concentrate will flavor approximately 32 gal. of snow ball syrup ($21.50 + 32 gal. = approximately $.68 cost to flavor a gallon of syrup). Syrup cost of $2.78 a gal. + 128 oz. = $.022 cost per oz.

COST OF A 12 OUNCE SNOW BALL:

Syrup 4 ounces @ $.022/ounce

$0.088

Styrofoam cup with spoon & straw

$0.03

Ice @ $8.00 per hundred pounds

$0.04

Total Cost

$0.158

This $0.158 is the cost of a deluxe 12 ounce snow ball. Cost of ice can be cut $0.03 on this 12 ounce snow ball by using a SNOW-BLOCK"' ice maker that will produce ice for approximately $0.01 per pound. Thus the cost of the 12 ounce snowball is $0.128.

 

DETERMINING YOUR PROFIT:

SNOW BALLS

New Orleans
Low Overhead
Low Price

New Orleans
Average Price

New Markets
Beyond New Orleans

Tourist Areas
Special Events


8 oz. cup

$0.50

$0.60

$0.75

12 oz. cup

$0.75

$0.90

$1.00

$2.00

16 oz. cup

$1.00

$1.15

$1.25

20 oz. cup

$1.25

$1.40

$1.50

24 oz. cup

$1.50

$1.60

$1.75

32 oz. cup
46 oz. cup

Pricing can vary from a bargain to a sales gimmick; sales tax is normally included for sake of simplicity.

RETAIL SNOW BALL BUSINESS
DAILY OPERATION FIGURES AND MONTHLY PROFIT
******************* DAILY *******************
MONTHLY
SALES
COGS 18%
GROSS PROFIT
EXPENSES
NET PROFIT
NET PROFIT
OVERHEAD
LABOR
$ 75
$ 14
$ 61
$ 16
$ 40
$ 5
$ 150
100
18
82
17
40
25
750
150
27
123
18
40
65
1950
200
36
164
19
40
105
3150
250
45
205
20
50
135
4050
300
54
246
21
60
165
4950
350
63
287
22
70
195
5850
400
72
328
23
80
225
6750
450
81
369
24
90
255
7650
500
90
410
25
100
285
8550
COST OF GOODS SOLD (COGS) for all snow ball sizes are based on the 15.8 cent cost of the 12 ounce snow ball with ice purchased at 8 cents/lb. The "New Orleans Average Price" of 90 cents will be used for the sales figure thus yielding an 18% COGS.
($15.80 COGS/$.90 sale price = 18% COGS).

The COGS of 18% is reduced to 14% (12.8 cents snow ball cost divided by the 90 cent sale price = 14%) by using a SNO-BLOCK ice block maker. The SNO~BLOCK brochure illustrates daily ice savings.

 
 

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103 West "W" Street • Belle Chasse • Louisiana • 70037 • USA
Toll free 1-800-393-8933 • Local 504-393-8967
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