Snow Ball Syrup Formulation & Cost:
6 lbs. sugar + 2 qt. 6 oz. water + 4 oz. flavor = 1 gal. (6 lbs. x 50¢) + 0 + 85¢ = $3.85 a gallon. The current sugar price is 50¢ a lb. One gal. of flavoring concentrate will flavor approximately 32 gal. of snow ball syrup ($28.00 ÷ 32 gal. = approximately 85¢ cost to flavor a gallon of syrup). Syrup cost of $3.85 a gal. ÷ 128 oz. = 3¢ cost per ounce.
Cost of a 12 ounce snow ball:
This 20¢ is the cost of a deluxe 12 ounce snow ball. Cost of ice can be cut 2¢ on this 12 ounce snow ball by using a SNOW-BLOCK ® ice maker that will produce ice for approximately 2¢ per pound. Thus, the cost of the 12 ounce snow ball is 18¢.
|SNOW BALLS||SNOW BALLS AVERAGE PRICE||TOURIST AREA OR SPECIAL EVENTS|
|8 oz. cup||$1.50|
|12 oz. cup||$2.00||$3.00|
|16 oz. cup||$2.50||$4.00|
|20 oz. cup||$3.00|
|24 oz. cup||$3.50|
|32 oz. cup||Prices vary from a bargain price to a sales gimmick.|
|46 oz. cup|
The prices of these snow balls are usually "sales tax included."
For all snow ball sizes are based on the 20¢ cost of the 12 ounce snow ball with ice purchased at 8¢ a
pound. The price of $2.00 will be used for the sales figure, thus yielding a 10% COGS.
(20¢ COGS ÷ $2.00 sale price = 10% COGS).
The COGS of 10% is reduced to 9% (18¢ snow ball cost ÷ sale price $2.00 = 9%) by using a SNO-BLOCK ® ice block maker. The SNO-BLOCK ® brochure illustrates daily ice savings.
Signs are your first step. The more signs you have, and the bigger and more colorful they are, 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.