10 Business Tips to Make More Money as an Ice Cream Owner - CFO Corner 6/2022

10 Business Tips to Make More Money as an Ice Cream Owner - CFO Corner 6/2022

  1. Have Your Store Branded

  • Image is everything (well, almost everything).  The experience and taste of the ice cream bring customers back.  Focus heavily on store branding and image.

  • Hire outgoing and courteous employees even if they don’t know how to mop a floor.

  • Dress for success.  Employees should wear the full uniform.  No exceptions.

  • Owners:  Brand yourself.  Get the SZ Logo out on everything… inside AND outside of the store.  Wear SZ branded shirts regularly.

  • Participate in the community.  There are a thousand ways to do that.  Pick 2 or 3 and get involved.


Your goal is to change your store from “the ice cream shop in the neighborhood” to “the neighborhood’s ice cream shop”.



  1. Get Visual With Your Menu

  • People buy with their eyes.  Ensure your menus are eye popping.

  • Place posters, video monitors, and other promotions in strategic traffic areas. 

  • Promote & display higher priced items.  More profits.



  1. Look at the Semantics of Your Menu

  • Labeling of your product sizes has an effect on the customer’s decision on what to buy? A recent study showed that the labeling of sizes differently has an effect on the number of sales that you have and the amount of different sizes that you sell.  Most sales are:

Small -------- 70% sales

Medium ----- 20% sales

Large ---------10% sales

  • Changing the names or wording of the sizes of the product can greatly change the way people buy.  Here is an example of the percentage of customers who bought each size when the sizes were displayed differently.  Kudos to Jerry and the team for enhancing our labeling several years ago.  It has made a difference.

Small ------- 50% sales

Regular ------35% sales

Large -------- 15 % sales


Larger sizes converted into sales means more profit for you!



  1. Specialty Shakes

  • Rather than having one of the boring old 3 flavors of shakes (chocolate, strawberry, vanilla), look to create unique and engaging names and items in these categories to drive sales. For example, creating an “Oreo Earthquake-Shake” would grab the attention of customers much more than a regular chocolate milkshake. 


The goal is to create a profit center with your specialty items allowing you to charge more.


 

  1. Raise Your Prices (a must in today’s environment)

  • Raising your prices is a key aspect of staying competitive in the market. 

  • Your goal is to sell high quality products while trying to achieve the correct price point. 

  • Use Rob’s pricing model, if you need assistance.

  • Don’t drop your prices because of the competition. Remember; your product and services are better!  

 


  1. Greeting and Goodbyes

  • Mandatory greetings: “Hi, welcome to Sub Zero.”  Exits: “Thanks for coming in.”  Or, while at the cash register; “Thanks for supporting small business.”

  • Make your store the friendliest business in town.  

  • Don’t hire shy people.  It doesn’t work.  

  • Get rid of disgruntled and negative employees.  It is cancerous

  • Train till you are blue in the face.  Then train some more.



  1. Upselling

  • Teach employees to upsell mix-ins, waffle bowls, cones, and larger sizes.  Boom; more profits. 

  • Teach your staff how to upsell politely and logically.  Customers want more value.   



  1. Supplies and Cost of Product

  • Take a hard look at your supply chain.  Compare prices. Compare purchase minimums.  Buy smart!  Always take a vendor discount.

  • Be prepared and willing to change suppliers. 

  • Buying in bulk might be more cost effective than buying the product every time you run out. 

 

Any P&L has at least 2-4 % in cost savings that can be identified.


 

  1. Be Daring

  • Try new things.  New promotions.  More fundraisers and sport sponsorships. 

  • Try Employee Appreciation Day…. for your own employees.

  • Try any kind of event that you think will get customers in the door.  Give it a try! 

  • If the promotion doesn’t work, you will know for the next time to try something different.



  1. Talk to your customers

  • Customers know what makes them happy or not.  So, ask them.  

  • Go right over to their table and ask for constructive feedback or ideas.  You’ll be surprised how easy it is to learn about what they see, taste, and feel.


Why search for different solutions when your customers can provide you with the answers?  So, ask.




 

Available any time for financial assistance

Rob West

805-587-4262

rob.west@subzeroicecream.com