Why Cotton Candy?

This is an extremely low cost business model. You will likely be surprised on just how much you can make and charge for this special treat.  For example, a typical serving of cotton candy is either 28 grams on stick or 56 grams in a bag.  You can sell this stuff for anywhere between $1-$5 depending on the location.  Your main costs will come from the sugar, fuel costs and the way in which you package the candy.

What type of return can one expect in the candy business?

The cost in a 28 gram serving of cotton candy on a stick would be approximately 30 cents.

• Sugar $.056
• Flavour $.002
• Colour $.005
• Sticks $.12
• LPG $.11

Your profit on a $3.50 stick would be roughly $3.20. This is equates to an 92% profit margin.

Say if you bought 5kg of sugar from the super market at $10. You could make 178 cotton candy sticks at 28 grams. Based on the costings above, with no wastage, you would make $623, and $570 would be the cash profit.

Take a look at this excel document Candy King.xls. Alter the parameters highlighted and see how things could look.