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TOPIC: Those frozen drink machines

Those frozen drink machines 24 Nov 2000 19:47 #901

  • Mike
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Does anyone have those things that have the twin cylinders and go round and round and they sell all kinds of wild drinks like coffeemocha and pina colada? How do they sell for you? Are they worthy?
Michael Hurley
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Re: Those frozen drink machines 24 Nov 2000 21:14 #902

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Yes.

We use an Icee product that is precisely what you describe. We serve Strawberry/Banana Smoothee and Frozen Mocha Cappuccino. It is our least profitable product. Most items in a concession stand are marked up by 300%. This is the only way to make any money at the stand. Our two products are sent to us whole and don’t require dilution. There are real strawberries and bananas in the mix and real coffee. Those that buy it usually drink the entire drink. I think they like it.

The frozen drinks are 3.46% of our total unit sales. They represent 4.60% of total dollar sales.

Here is where I demonstrate why it is so costly.

The cup costs $.10 per cup. (Solo clear)
The lid costs $.05 per lid.
The product is $1.39 per serving. (Each serving is 160z.)

Total cost is $1.55 per drink.

We sell our 16 oz for $3.50, which is 2.27-x unit cost. If we charged 3-x unit cost we would have to sell the drink for $4.75 and that is too much. A juice bar will make you a custom 22 oz smothee for $4.00.

Before signing up with a product have the sales man provide you with a profit analysis sheet. We decided to get this product even after we studied the product analysis sheet.
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