Nicole Loomis • Apr 06, 2020
Just as you would with any product, when you consider selling juice, you’ll want to first crunch the numbers to accurately project how you’ll do. This is a crucial part of creating any product, though it looks different for your juicing offerings than it does for, say, the rooms a hotel rents out. To learn more, read how to calculate your juice profit margin.
Determine Your Potential Costs
First, you’ll need to count your raw material costs. This is when you decide how you will buy your apples, carrots, sugarcane, spinach, strawberries, and more. You face a decision between buying more costly organic ingredients or getting more bang for your buck going nonorganic. While the untouched, pesticide-free freshness of organic can attract certain customers, this option does tend to add up quickly.
Also, you must decide where you’ll buy these ingredients, which will impact your expenses. Local suppliers allow you an easy and cost-efficient source of fruits and vegetables, but you’ll likely need to buy from many different places to fill out a menu. Coordinate your shipments appropriately so you never lack a certain ingredient and waste potential sales. Also, keep in mind that ingredients cost more when they’re not in season.
Think Through Your Menu Costs
Next, you’ll want to consider how these ingredients combine into specific fresh-pressed juices on your menu. If you create a delicious drink that uses several high-priced ingredients, it may not be a financially viable item even if you sell hundreds. It’s best to limit your costs as you create your menu, and if you insist on using a certain combination, you can search for cheaper produce to make that happen.
Count Your Additional Costs Too
Beyond the juice itself, you have peripheral costs to count as well. Consider the labor cost of maintaining a juice bar if you have one or otherwise stocking ingredients and creating juice. Your juicing equipment is a somewhat large upfront cost that you must include. Finally, you’ll need to factor your drink cups and lids into the equation. These expenses, along with what you spend on ingredients, represent your total expenditures.
Price Your Menu
With expenses settled, you’ll need to consider reasonable prices for your products. Do your research on how other businesses price drinks and price your own in that ballpark. Naturally, you may wish to price organic drinks higher than nonorganic items.
Calculate Your Profit
From there, it’s a matter of subtracting your costs from your product price and projecting how many drinks you will sell in one day. These projections can become more concrete once you have actual sales that are somewhat stable.
If you’re looking to start juicing, JuicerNet has many unique juicing machine models to pick from, ranging from fruit and vegetable juicers to sugarcane juicers and more.