Tuesday, November 27, 2007

Links to Cost of Goods Sold...Helpful Information!

Here are two links to some interesting information for those of you who are thinking about opening your own shaved ice or snow cone concessions business. These two charts display the COGS (Cost of Goods Sold). There are two charts, one for shaved ice and one for snow cones. Please keep in mind that these costs may vary slightly depending upon your geographic location.

All costs are rounded to the nearest penny. The cost of ice is based on the price of $1.00 per bag or block of ice. Ice cost will be cheaper if you make your own. Initially, you will need to lay out more money to purchase the necessary equipment for making your own ice. However, you will recoup your initial costs quickly because of the long term savings due to producing your own ice. One caveat though...please be sure to check with your local department of health. If you enter into the production of your own ice, you may be subject to quarterly water testing, installation of water filtration systems, and other requirements imposed by your health department. CHECK WITH THEM FIRST BEFORE MAKING YOUR DECISION. Flavored Syrup cost is based on preserved syrup at 2.6 cents/ounce, spoons, spoonstraws, and napkin costs are based on case prices, sold on 1-800-Shaved-Ice.com.

Shaved Ice COGS Chart

Snow Cone COGS Chart

We hope that you will find this information helpful in your decision making process regarding opening up your own concessions business. This breakdown of costs is also very helpful in evaluating your current and future menu prices.

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