SNOWBALL MARKETING TIPS LOCATING YOUR BUSINESS: 1. 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: 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.     Flavors | Machines | Trailers | Supplies | Pricing Home | History | Ice FAQs | Marketing | Sitemap Don't see what you're looking for? Search our site! 103 West "W" Street • Belle Chasse • Louisiana • 70037 • USA Toll free 1-800-393-8933 • Local 504-393-8967 Email Us Web site design & maintenance by Areafocus, Inc. To make suggestions about our web site or to report a problem, click here Copyright © 1997-2008.