Part 6/8:

The core pricing strategy involves calculating ingredient costs, adding a 40% markup for overhead, and a 25% profit margin. However, achieving sufficient volume through sales is key to turning a profit, a challenge faced by many food entrepreneurs.

Competitive Advantages: Building an Ecosystem

The entrepreneur has adopted a holistic approach to the business by acquiring related entities, like the nearby ice cream parlors and transport services. This integration strengthens cash flow and ensures a stable supply chain, providing a competitive edge in a saturated market.

By leveraging vertical integration, the entrepreneur controls both manufacturing and distribution. They can sell directly to consumers while also supplying other businesses, thereby maximizing revenue potential.