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With all of the available information on food and nutrition, we can see exactly what is there in our food, and therefore homemade food is all the rage right now. When it comes to ice cream, I really want to know what’s inside. In addition, homemade ice cream seems to be the fad nowadays. So homemade ice cream business could be something you might want to look into. But, how much to charge for homemade ice cream?
The selling price of your ice cream could go as high as $6, depending on what you put in it. For additional ingredients, such as chocolate spread, increase the price. The average cost of making your own ice cream would be from about $0.75 to $2.5 per scoop, assuming you use budget ingredients.
The cost of homemade ice cream is highly variable as there are countless choices in terms of ingredients and flavors you can use, which can create confusion. Therefore, in the following paragraphs, I will explain as clearly as possible how much cost will you have of making homemade ice cream and how much to charge.
How Much Does It Cost to Make Ice Cream?
The general rule when comparing the cost of homemade vs. store-bought ice cream says that the homemade ice cream price is about one-third of the store-bought ice cream with the same quality.
For example, buying one standard scoop of vanilla ice cream, which is about half a cup, will cost you about $2.5—making it would cost you about $0.75. We cannot compare a scoop of ice cream made with expensive chocolate, milk, and nuts with a chocolate scoop made of ice cream powder and water. So, we are comparing the same quality ice cream.
Therefore it is best to stick to fractions instead of numbers and observe the one-third cost and two-thirds profit rule.
How Much Should You Charge for a Homemade Ice Cream?
The standard business rule says that when you sell a product, the price should cover your expense and bring you profit, which is why you are selling your product in the first place. The profit you make should be proportional to the invested time, effort, and resources.
The standard investment-profit ratio is either 1:2 or 1:3.
To determine the selling price of your homemade ice cream, you should first consider the time and resources you invested, and they can vary depending on what kind of ingredients you used.
If your ice cream was simple and plain, for example, a regular vanilla ice cream, your profit ratio should be 1:2 because you didn’t invest much. Therefore if you made the scoop for $0.75, you should sell it for $1.50.
On the other hand, if you’re making something custom-ordered containing more specific ingredients and it is tricky to make, your profit ratio should be 1:3. Therefore, you are earning three times the amount of the cost. If the scoop costs you $2 to make, you should sell it for $6.
These examples are purely demonstrative, but you get the point. If you are somewhere in between and you want to provide your customer with a good product but still cheap, you can adjust the profit ratio. So, if one scoop of ice cream costs $1 to make, sell it for $2.5, and you will be somewhere in the middle.
Still, the price also depends on who you are selling your product, too. Are you selling for the upscale yuppies or the everyday folk? Choose your audience, adjust your product and charge it accordingly.
The numbers shown in this table are purely demonstrative, and you should use them as pointers more than as definitive prices. The prices will vary from case to case and from audience to audience. In addition, expressed data is for $0.75 as the cost of making and selling per 1:2 profit ratio.
How to Sell Homemade Ice Cream?
Rome wasn’t built in a day, so don’t expect your ice cream business to flourish right from the get-go. If you’re new to the business, you can always start selling ice cream from home if, of course, you adhere to the sanitary and legal requirements.
You can also sell ice cream from an ice cream van or open your own ice cream shop. There are ways to sell ice cream through distributors; you make it, they distribute it to other places, and there you have it, your own chain. The trick is to start slow and build toward success in a stable manner.
The most important things are to choose a suitable business model, especially in the beginning, set realistic expectations, and provide the customers with the best product from that price range.
Is Selling Ice Cream Profitable?
Yes, selling ice cream is profitable. There are many ice cream companies that made a fortune selling ice cream, so it is a viable business idea.
Ice cream making doesn’t require a significant seeding investment, and that’s why it is a good idea for a start-up business. Ice cream is something all of us love, and there’s a wide variety of flavors and recipes you can choose from. The equipment ranges from cheaper to more expensive, but in general, it is affordable.
However, the business will depend primarily on how much you apply yourself. You can be in a very profitable industry and still make zilch, but you can be in a very unprofitable industry and make a fortune.
Generally, when it comes to making and selling food, especially food like ice cream, the chances of succeeding are more significant than the chances of failing, as there will always be someone who will want a scoop.