A snow cone's cost is mostly small pieces: syrup, cup and ice. Subtract them from the price for profit, then divide by price for margin.
A $3.50 small with $0.55 of costs makes $2.95, an 84.3% margin.
The example
Three sizes. Bigger cones make more dollars but a slightly lower margin.
| A | B | C | D | E | F | G | |
|---|---|---|---|---|---|---|---|
| 1 | Case | Price | Syrup | Cup | Ice | Profit | Margin |
| 2 | Small | $3.50 | $0.35 | $0.12 | $0.08 | $2.95 | 84.3% |
| 3 | Medium | $4.50 | $0.50 | $0.15 | $0.12 | $3.73 | 82.9% |
| 4 | Large | $5.50 | $0.70 | $0.20 | $0.18 | $4.42 | 80.4% |
The formula
Profit first, then margin as profit divided by price:
How it works
Here is the logic, one piece at a time:
B2is the sale price.- Subtracting
C2,D2andE2removes syrup, cup and ice. F2/B2is margin.- Format as percent.
Add straws, spoons and labor if you want fully loaded margin.
Try it: interactive demo
Enter price and the three costs.
Variations
Fully loaded
Subtract a per-cone labor cost.
Break-even cones
Fixed costs divided by profit per cone.
Pitfalls & errors
Syrup cost per cone depends on pump size; measure it.
Divide by price, not cost, for margin.
Compare sizes by profit dollars and margin together.
Practice workbook
Frequently asked questions
Why is margin lower on large?
Include tax?
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