Wednesday, November 28, 2007

Profitability Projections for Cotton Candy Sales

Did you ever think cotton candy would be considered such a profitable product? Well, it is! Due to the low cost to produce this candy, you may be surprised at just how much you can make and charge for this special treat! For example, a typical serving of cotton candy is either a 1 oz. cone or a 2 oz. bag. Depending upon where you operate, you may be able to sell it for as little as $1.00 or as high as $2.00. Your main expense will derive from the sugar and the method you choose to package the cotton candy. You may either sell it in bags, containers, or straight off of the cone. Please keep in mind that these figures only represent the COGS (Cost of Goods Sold). It does not reflect additional costs that will figure into your bottom line profits (labor, insurance, rent, etc.).

Your main cost in a 1 oz. serving of cotton candy on a cone would be approximately $.052 for the floss sugar and the cone would cost $.016, for a total cost of $.068 per serving. Your profit on a $1.00 cone would be roughly $.932. If you sold the same cone for $2.00, your profit would be $1.932. In a 2 oz., bagged serving, the floss sugar would cost roughly $.104 and the bag would cost $.042, for a total of $.146 per serving. Selling a bag for $1.00, your estimated profit would be $.854 per bag, and for a $2.00 bag it would be $1.854.

Now, are you motivated to start selling cotton candy when you see these types of profit margins?! As you can see the potential profit margin is huge; so what are you waiting for??? is ready to help you get started today!

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