Can I make money selling frozen yogurt?
The simple answer is yes, you can.
Between 2009 and 2013 a ton of yogurt stores opened. It was your classic "bubble". A lot of people were signing with their favorite franchise, writing a check for $300 to $400k, planning to their build-outs and getting ready for their grand opening. What they didn't realize was that another 3 or 4 people were doing the same exact thing not too far away from them. During the business plan stage, they didn't take into account that they would have stiff competition just down the street. Not only one, but multiple stores. So many killed each other off and only the strong survived. So now there are a lot of good deals on used equipment, making it a much lower risk by substantially lowering the initial investment that is required. And now there is less competition than there was just a few years ago because the "weeding out" has taken place.
Many of my customers see our used listings and worry that they will suffer the same fate. I can't say you won't. The bottom line is all industries have locations that don't make it. Frozen Yogurt is no different than a coffee shop or a restaurant or deli or any other business. Bad location, negligent management or a host of other issues can bring a store down. It is a basic business cycle. We also sell used ice cream store equipment - and ice cream stores have been around forever. Many open, some close. Its "nature". The key here is minimizing your risk by lowering your investment.
The way I see it, there are a couple of ways you can protect your downside and have the best shot at being successful.
1) Purchase a full store worth of used equipment. This limits your investment and gives you a shorter period to reach payback on that investment. As you know by now, we help match up sellers with buyers and we build in protective measures for both parties. I mention this because you need to be very careful if you buy used equipment directly from a seller. It's risky. Buying from TurnKeyParlor.com will not cost you a penny more and we will ensure that you are buying what makes sense for you. We hold 50% of a sellers $$ to ensure that you receive the equipment as advertised. We also manage shipping and fully insure it for damage. Lastly, we include a warranty with FULL 100% protection against any mechanical malfunction you discover after you put the machines to work. NO QUESTIONS ASKED. Problem? We pay to fix it. I can't tell you how many people bought used equipment only to come to me later wanting me to help them sell it. Why? One example - they bought 3 phase machines without realizing that their store location only had single phase power and no way to upgrade and the quote to add 3 phase to the building was north of $20k. This essentially rendered the machines useless to them. They took a big loss right off the bat. This is just ONE of at least 5 mistakes you can make buying used stuff on your own. Don't expect a direct seller to help educate you. If you work with us, we will do our best to makes sure you don't make rookie mistakes.
2) Go with used machines, and NEW with the rest of the equipment. We have plenty of deals where we package used machines and new equipment. This is the best of both worlds. You get the huge savings of buying used machines and going new on the rest of the equipment really isn't that much more money than buying used coolers, freezers, furniture. With this option, you get big savings but have more control over the "look" of your store (furniture, etc).
3) Go new, but limit the # of machines - Its comforting to buy new equipment with full warranties. And sometimes there isn't a used full store available that fits your needs. Going used isn't for everybody. We can help you with brand new equipment packages that are reasonably priced helping keep the investment as low as possible.
Whatever path you choose, we are here to help you along. Our hope is that you value the fact that we are about as neutral a party as you will find in the business. We sell all the brands and will not push you one way or the other. We do our best to present unbiased information and hope that this translates into equipment sales for us. Its not a complicated strategy.
As you get closer to securing your location and therefore closer to needing equipment, don't forget to check out our latest "used full store" deals HERE