The snow cart business may sound cool, but any smart person will ask the same question, whether it is snow cones or any other business: how much does it cost to start? This is a great question, as not many of us have a ton of cash on the side…if we did, we wouldn’t be looking for an amazing cash-only business like ice cream stands!
License
In most states, and even some counties and cities, you’ll need to make sure you have all available business licenses to operate. In some states these are as low as $50 total, while in many others they can cost up to a couple hundred, but it shouldn’t cost more than that. The cost also varies if you have a lawyer draft the business documents for you, or if you choose to do it yourself and hand-deliver the application to the courthouse. These fees can usually be offset by a good day or two.
snow cone cart
Prices can vary greatly depending on the type of cart you buy to start with. In fact, this expense is the most important factor in determining startup costs. Snow carts range from $400 to $4,000 for new shaved ice carts. There is also a lot of choice between these two extremes, but many people decide to start with snow cone carts that cost less than $1,000 to start with, and many make their money back in no time with just a few days of really good cash.
While many people will do very well to start with a small cart, don’t rely on price alone. There’s nothing wrong with starting cheap and working your way up (especially with how often the shaved ice business doesn’t even feel like a job), but what if the initial demand for your snow cones is three or four times more than you can provide? Not only are all those profits gone, but you’ll end up having to buy a bigger, more expensive snow cone stand anyway. Take the time to make sure that you are making the right decision in this case.
The shaved ice machine
The next most expensive piece of equipment is the shaved ice machine itself. The machine, along with its stand, is one of the cornerstones of your business when starting out, and entry level machines are most commonly found in the $400-$600 range. The best place to find a good machine is shaved ice is a real supplier or online website that specializes in them. Many of these sites will actually have multiple machines for easy comparison, making it easier for you to see the available deals and decide which one is best for you.
Buy supplies wholesale
While prices can vary for the supplies you need to run the snow cone business, most of these will be in at least the same price range. For supplies like paper cups, plastic spoons, or Styrofoam cups, never be afraid to look locally for a Sam’s Club, Costco, or other wholesale store that might give you the best deal. These types of roofing materials are inexpensive, and when purchased in bulk, often cost just pennies per snow cone sold.
snow cone syrup
Of the actual general supplies, the concentrated syrup to mix the ingredients will cost more, and a gallon of this can cost anywhere from $30 to $50 depending on the flavor and supplier. The good news is that one gallon of concentrate can make 8 gallons of syrup, or anywhere from 640 to 800 snow cones, which leaves tons of room for a lot of profit. Look for deals, especially when buying in bulk, as some places offer deep discounts for bulk orders.
What does this all mean?
Start-up costs add up, but a snow cone business has truly amazing profit margins, and it doesn’t take that many minor league games, flea markets, or big days to make up for a good chunk of that initial investment. It only takes a few good days to bring in enough cash to make up for your entire investment, and after that, it’s pure profit.
