The main theme of this blog is to discuss The Real Profit Story for dispensing frozen desserts, plus by giving you the facts, you can decide if a One-Shot® or a traditional soft serve machine is more cost effective. We also have a Real Profit Story LinkedIn Group that you may wish to join (click here).
The Real Profit Story is not just about your selling price, your food cost, the number of servings per day, and your opening hours. How about the all hidden costs? Has your soft serve vendor disclosed the hidden costs when calculating your application’s hypothetical net profits?
In fact by bringing in the hidden costs into the equation you have a much higher breakeven point to achieve (and you may not even realise it yet). Some hidden costs like energy appear to be rising in some countries, which could make your breakeven point that much higher on a year-by-year basis.
For example, the Mail Online (a British newspaper) released an article on 15 December 2011 called “Electricity bills to rocket by 25% because of 'green' targets, says Government” to emphasis this point. The article points out “that electricity prices are likely to rise by 41 per cent by 2020 in real terms.”
That may or may not be applicable to your location, but look at your electricity bill with some scrutiny, since it is hidden costs like this that are a real eye opener. Check with your vendor what your soft serve machine consumes, although it is important to note that one of our One-Shot® OS6 and OS7 dispensers consumes less than a 100 Watt domestic light bulb.
The hidden costs don’t end there with energy consumption, since you should ask your soft serve machine vendor about impact of the following costs:
- Equipment cost
- Heat emission
- Installation cost(s)
- Lost sales due to freeze-down time
- Sanitising
- Special wiring (if needed)
- Service
- Spares
- Waste
We would be very interested to hear how your breakeven point and Net Profit has been calculated. What you really need is something like a Kostamazin™ spreadsheet, which takes into account the hidden costs, using figures that you supply (and we can even liaise with your cost accountant to help verify the figures). That is precisely why we call it The Real Profit Story!
If you are intrigued about studying a comparison between One-Shot® and traditional liquid mix soft serve, we can sit down with you and discuss true cost accounting covering this. There will be applications where One-Shot® is more cost effective than traditional liquid mix soft serve, whereas other applications traditional liquid mix soft serve will be more cost effective than One-Shot®, but the point is that you can now calculate an impartial Real Net Profit.
If we isolate the One-Shot® OS6 and OS7 dispensers for one moment, your cost accountants will be astonished to find that:
- Inexpensive range of dispensers
- No sanitising
- Perfect cost control
- Energy consumption less than a 100w light bulb!
- What installation cost? Just plug-and-go!
- 110/220v connection – no special wiring
- Replacement service contracts offered
- Minimal spares (no O-Rings, lubricants or other such fiddly parts)
- What you buy is what you sell (no waste)
- 24/7 operation
Most certainly the One-Shot® OS6 and OS7 dispensers are inexpensive, so if you were an ice cream company or a franchise looking for expansion, you could be a lot of machines for a comparably small capital outlay. That also means that you could outfit a lot of sites quickly in the pursuit of grabbing market share.
If you are also risk adverse, the One-Shot® dispenser also has a low breakeven point, which is something to bear in mind in these times of austerity. Money is tight these days and opting for a One-Shot® dispenser might be right for your budget. You will be surprised about how inexpensive these machines are.
If you are a chain account, why not join me on LinkedIn? At the time of this writing my group is the number one group for the keywords “franchise," “franchising" and "ice cream" with over 34,000 members (just click here to join). Thousands of global contacts each and every month get direct updates through our social networking strategy.
No matter where you are located across the world, please contact me for more information about the One-Shot® ice cream and frozen yogurt system:
Gary McGill, MA, MBA, FCMI
Global Headquarters
The One-Shot Corporation Limited
60 Churchill Square Business Centre
Kings Hill
Kent
ME19 4YU
England
Tel: + 44 1732 525925
Fax: + 44 1732 525825
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