Do you want to start a candy store and want to know the cost? If YES, here is a cost breakdown for opening a candy store business and the profit margin/ROI.
Candy stores are becoming very popular in the United States and can be found in almost every mall across North America. This $20 billion industry offers willing entrepreneurs the chance to enjoy sweet and creamy success. A candy store’s success is defined by the quality and taste of the products you serve.
If homemade candy is your vision, you should be creative and well – versed regarding what spices and foods complement each other. Candy store customers visit the store and choose items to buy. The store then takes a profit off each sale.
Some candy stores partner with other small, local businesses who wish to maintain an inventory of the candy shop’s treats. This is a mutually beneficial relationship and is an effective way to network with other entrepreneurs in the community.
However, the prices charged for each sale vary depending upon the product and packaging size. A bar of chocolate could retail for $4.50, while you might charge $55 for a larger box of candy. Prices should be set based on cost, labour, and competitor pricing.
In this business, however, bigger candy manufacturers have an advantage over smaller businesses, making the industry quite competitive.
Cost Breakdown for Starting a Candy Store Business
After you must have put together a detailed business plan, you will have a better understanding of the factors that best suit your business needs. Some confectioners have a separate facility for making their tasty treats, while others house everything in one location.
However, note that the location of your storefront is important to the success of your business. Take your time and select a space that’s easily accessible, with ample parking, and a good amount of foot traffic. After choosing a location, you have to start making your initial investments.
Your needs will vary depending upon the specifics of your candy store. Candy stores are expected to be magical and unique. Always ensure you budget for proper design and decoration of the facility. Have it in mind that the ambiance will not only attract customers, it will also keep them coming back.
If interior design isn’t your forte, consider hiring an interior designer to assist you. In this business, first impressions really do matter. Before opening your doors, fulfill your staffing needs and train them properly. Consider it an investment in your business goals.
Depending on the range of products in your candy store, you will want to consider starting your business with the following equipment:
- 30 Regular Candy Container – $150
- Assorted candies – $2500
- 10 Apothecary Jars – $200
- 30 Stackable container – $500
- Candy Dispenser – $750
- 5 Interior Paint – $250
- 200 Cellophane Bag – $54
- 50 Plastic Scoop – $84.50
- 2 Square Candy Display Table – $360
- 3 Acrylic Bin Display – $231
Aside the cost of leasing your facility or designing a suitable business location and getting a candy store license, you will need about 79.50 to start a small scale candy store in the united states.
If you are not making your own candies, strategically plan ahead to make sure the candy you purchase from suppliers will be fresh and tasty by the time it reaches your customers. Typically the softer the candy, the shorter the shelf life it will be.
Ongoing expenses in this business will include product and inventory costs, rent, electricity, and insurance. Labour and payroll taxes will prove to be your largest monthly expense. You will also need to dedicate a portion of your budget to marketing campaigns, which help ensure your continued presence within the community.
CONCLUSION
According to reports, the average American consumes, on average, almost 24 pounds of candy annually, with no signs of slowing down.
Candy shops earn a profit based on revenue generated, minus all overhead and labour costs. Averages vary depending upon geographical location and your specific Business model. However, to succeed in this business, aside from carrying a wide array of products, ensure to effectively market your store.
Consider creating your marketing strategy and consider the products you offer. Is there a specific target market that comes to mind when you analyze the benefits of your candy? If so, aim for that niche. Learn everything you can about them.
Are there any untapped opportunities you should consider in expansion? How can you best convey the message that your product stands out above the competition? What marketing techniques most appeal to them and what do they dislike?
Advertisements in community newsletters are an effective way of reaching locals, particularly when a coupon is included.
Additionally, ensure you are listed in all the search engine business directories, and create an account with Yelp. Ask customers to post a review of their visit and listen when they provide feedback. Just like every other small business, a social media presence is a simple (and free) way to reach out to consumers.