ChowMunga!

How to Make Money with Chocolate Fountains

Everyone loves chocolate. 

They love it even more when its flowing like a chocolate waterfall!  Just think of Willy Wonka and the Chocolate Factory (one of the greatest and yet oddest movies of all time).  I always loved to imagine eating the gallons of chocolate pouring into the chocolate river.  If you have not already experienced chocolate fountains at a wedding or other gathering, your are really missing out!

Here’s a video of a Chocolate Fountain (its kinda cheesy with the music, but it gives you an idea):

Creating a chocolate fountain business is not a difficult one to get into, but will take a lot of work if you really want to make some serious money.  On the other hand, it could be a nice part-time business (certainly a home based business) that could just bring in an extra few hundred dollars a month. 

Market Size:

But before “diving” into the chocolate fountain business, let’s see what kind of market there is.  Hmm… to do that, I am thinking of all the different possible events that a chocolate fountain might work at.  Here’s a partial list:

• Weddings

• Engagement parties

• Rehearsal dinners

• Bar Mitzvahs

• Birthday celebrations

• Anniversary parties

• Bridal & Baby showers

• Dinner parties

• Dessert buffets

• Grand openings

• Trade shows

• Open houses

• Graduation parties

• Holiday celebrations

• Children’s parties

• Company parties

It’s difficult to put a figure on the overall market size; but from the research I have done, the money spent on the above listed events is HUGE!  And it shows no signs of slowing down.  So, I think its a safe argument to say that there is a healthy market for this business.

Competition:

Okay, now lets take a look at the competition.  This is not so rosy.  Because it is so easy to get into the Chocolate Fountain business; the competition is fierce.  Just about every catering company now also offers chocolate fountains. 

Now despite the sheer number of competitors, its important to look at how firm a grip they really have on the market (in your local area).  In other words, even though there might be 10 different companies offering chocolate fountains in your local city, the public may not know about them! 

I think that this is your best opportunity to succeed.  Most people don’t think about chocolate fountains until they need one.  So, they are not likely to know who offers chocolate fountains.  If you can position yourself to be the first one they find, then you are more likely to get a sale.

Marketing

Alright, before I get a head of myself; we have established that there IS a market for Chocolate fountains.  Unfortunately, we have also established that there is a lot of competition (may be more or less depending on your local area).  But there also may be some weaknesses in your competition. 

This is where your marketing and strategy may be able to overcome your competition.  Its great if they find you in the yellow pages first; but its even better if you can make them think about YOUR chocolate fountains before they are even thinking about fountains at all.  I hope that made sense because its important. 

In other words, if through your marketing you can make potential brides or other customers think the idea of a chocolate fountain would be perfect for their occasion before any of your competitors do, then you’ve got the sale!  So, how do you market to potential customers?  Well, think of where your target market will be, and then send out brochures, flyers, or other media (magazines, newspapers, etc.) 

However, the 2 things that work best in this business will be word of mouth referrals/networking and Chocolate Fountain displays.  Happy customers or your own friends of family will give you a real boost in this business.  Secondly, if you can set up a working chocolate fountain at bridal shops, florists, reception halls or other locations where you target market will be, you will certainly win some business!

Investment Required:

So, how much does it cost to get started in this business?  Well, there are lots of different fountain sizes: You can get small ones (about 25 inches tall) for around $300 or so.  The larger ones (up to 44 inches tall) that will really attract business go for around $3,000. 

Here is a list of chocolate fountains selling on eBay; just to give you an idea.

Then of course you will need to purchase chocolate, snacks to dip, and other supplies for each event.  So, just to get up and running, you should expect an investment of at least $5,000.  Then the rest is up to you, depending on how much you want to spend on marketing and advertising.  However, $5,000 will definitely get you started.

Profit Potential:

So, how much money can you really make at this?  Well, your prices will vary upon which you offer.  However, a typical chocolate fountain rental can range anywhere from $300 - $600 per event.  So, if you rent a fountain at $500 per night and your expenses (labor, chocolate, supplies) for each event are $200, then you will profit $300 per event.  If you do 2 per week, that’s an extra $2,400 per month!  If you decide to go full time at it (which you certainly can), then you can see how that will add up.

Overall, I believe that the Chocolate Fountain business is one with high demand and great market potential.  However, I feel that there is a lot of competition and this could put a real damper on the business. 

Despite this, if you are willing to put in the time and effort, and employ the correct marketing and strategic principles, you can make a successful business at it.  I also feel that this business can become much more attractive as you combine it with other services, such as catering, wedding planning, or other services.  If you use your imagination and your knowledge of your local area, you could really make this a big business.

What do you think?  Is the Chocolate Fountain business a good one?  What other business ideas would you like me to analyze?

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