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Profitability and Cost of Cotton Candy
Profitability and Cost of Cotton Candy
Did you
ever think cotton candy could ever be so profitable?
Well, guess again! Due to
this low cost candy, you may be surprised on just how much you can make and
charge for this special treat! For
example, a typical serving of cotton candy is either 1 oz on a cone or 2 oz in a
bag. Depending upon the state in which you live in, you may be
able to sell it as low as a $1.00 or as high as $2.50.
Your price will be reflected upon the amount of time and cost that you
have in the product. Your main cost
will come from the sugar and the way in which you package the cotton candy.
You may either sell it in bags or containers, or straight off of the
cone. Another cost you may have to
consider is the rental cost if you rent the machine.
We have found the average cost to be any where from $40 to $60 day.
Location also plays a big part in determining the price of the candy as
well. If you have a great deal of
competitors, you may want to sell it at their price or even at a lower price to
create a higher demand for your product. If
you are the only one selling the product, you then have the advantage of setting
the established price. Remember to
set it at a reasonable price in hopes of creating repeat customers.
For
example, your main cost in a 1 oz serving of cotton candy on a cone would be
approximately $.052 for the flossugar and the cone would cost $.016 for a total
cost of $.068. Your profit on a $1.00 cone would be roughly $.932.
If you sold the same cone for $2.50, your profit would be $2.432.
In a 2 oz serving in a bag, the flossugar would cost roughly $.104 and
the bag would cost $.042 with a total of $.146.
Selling a bag for $1.00, your estimated profit would be $.854 per bag,
and for a $2.50 bag it would be $2.354. Now,
does this help motivate you to start selling cotton candy? As you can see the profit margin is huge; so what are you
waiting on?
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