Dippin Dots-Worth It?

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gener said:
I don't understand the obcession with dippin dots that the industry has. The cost and waste of the product is so high when served a price of 4 bucks probably only pulls in a 40-50% food cost, which for a park is abysmal. I would push that soft serve, now there's a money maker.

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I think the "obcession" is margin, and it's a lot higher than what you're thinking!

Personally, I am a fan of Dippin' Dots. I won't buy them at Cedar Point, though. Only at PKI will you ever see me buy them because they are mucho cheaper.

And, even then, only on rare occasions.

Jeff what margin are you talking about? Not a profit margin. If you're starting with a 40% food cost and add in labor (cost to serve and transport this sensitive product), it's at least 50% or more. The onlt thing DD has going for it is they won't charge a place like CP for the equipment because of the volume they do. But even then they know for every case one bag is lost on mis-handling and another in the bottom of the serving case. Which for DD is pure profit and KILLS the profitability for the park. Look at something like cotton candy that is running less than a nickle for total cost of goods and what do they charge 2 bucks plus? How about a fountain soda where the cup is five of the six cents for the 3 dollar 20 oz.

The point is that some food products while popular and sell well if placed or marketed correctly, just take away sales from other more profitable items like soft serve or even hard ice cream (even though the labor on that is a bit out of hand). Many people want ice cream or something like it and will be just as happy to buy the cone or the DD, so steer them to the products with the best profitability. It's not like DD is bringing in significant sales that wouldn't be spent anyway. The lessen is to limit the number of DD carts and place them sparingly to capture those who seek out and only want that product.

DD may look good initially, but when you really look at the numbers it hurts your percentages. Which is just as important as the per cap in food service. *** Edited 5/29/2004 5:42:34 AM UTC by gener***

Dippin' Dots are the most amazing ice cream in the world. Yes, I hate the rising prices, but I love Dippin' Dots. I'm an obsessive-compulsive buyer of Dippin' Dots. Everytime I see a stand and I don't have Dippin' Dots in my hand, I have to get some. It drains me a lot of my flow. I NEED HELP! SOMEBODY HELP ME!

Whatever you say, gener...

OMG!!!!!!!!!1!! THEY R SOOOO GOOD!!!!! I DONT KARE AOUT THE $$$$ MY DAD PAYS 4 'EM

(Pre-teen AIM talk off)

This is what happens when you buy a $25 million rollercoaster and a $12 million <--(?) resort expansion. Same with resort rooms this year. If there are going to keep filling them up, why not raise the prices a little bit. The same goes with the Dippin' Dots, if they are still selling at that price, why lower.

Great rebuttle Jeff, obviously you haven't a clue. Because not only could you tell me that i'm exagerating the forty percent but you would know that the one galon bag of Dippen Dots will run you about 15.50 (and if i'm wrong it's because the price went up). Sold for four bucks at five ounce serving you would (in a perfect world) get 100 dollars for your 15.50 plus three ounces left over. Not to bad, a 15% food cost... but wait there's more. Add in the paper; napkins, spoons, and cups. Now add in the number of bags wasted on a daily basis and the number is more like 25% Which when the goal for most parks is under 20% total department food cost Dippin Dots won't do you much good when there are other products that people will spend that money on with a much better margin. Like soft serve.

So i ask again, why do parks fawn all over these guys with their gimiky product (which seems that most people here don't like) that has to be priced so high most people are turned off, and when it doesn't it takes money away from other more profitable offerings? *** Edited 5/30/2004 4:51:41 AM UTC by gener***

Hmmm, Because they make more money than we know?

Dippin' Dots have infested MiAdv for the last couple of years. They sell, and make a ton of money for the park. If they didn't, they would be outta there.

MrScott

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gener said:
Great rebuttle Jeff, obviously you haven't a clue.

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Says the person that boldly hides their profile in anonymity.

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gener said:

The cost and waste of the product is so high when served a price of 4 bucks probably only pulls in a 40-50% food cost, which for a park is abysmal.

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gener said:

Not to bad, a 15% food cost... but wait there's more. Add in the paper; napkins, spoons, and cups. Now add in the number of bags wasted on a daily basis and the number is more like 25% Which when the goal for most parks is under 20% total department food cost

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Now, I'm not a math major (but I play one on the internet) and if you're going to make an argument based on something relatively static like profit margins, you really ought to use the same set of numbers throughout your argument.

In Cedar Point, yes they are worth it because Six Flags is charging 7.00 a cup for them, anyways i like them so I buy them anyway. :)

I said that the original post was an exageration.

Clearly people in the industry don't all look at it the same way i do. In fact i used to love them as an operator myself. But then i did the math and was convinced by others. The product isn't like it was with its novelty. Add in the relativly higher margins than other comperable products that people will purchase in its place and i think you have a product that is a pain to deal with and hurts the bottom line. There are products that have relativly bad margins but provide something completely unique, which before you all say it, Dippin Dots is still just ice cream. People, when looking for ice cream, will buy it in whatever form it comes in. Again i also go back to the point that most people thus far have come out and generally said that it's ok but not worth the money, or they just pain don't like it. To put it simply i think it's a product that takes money away from real profitable products. Ya Dippin Dots turn in some cash, but how much more would you have on the bottom line if that time, labor and effort were put into other uses.

Jeff i don't see what my identity has to do with anything. I lay out an arguement or point of view and you have nothing to say in return other than silly remarks. I have a point and am not the only one looking at this topic in this manner. Companies do stupid things all the time, sometimes on purpose but mostly because they don't see what they're doing wrong. *** Edited 6/3/2004 2:35:36 AM UTC by gener***

My "silly remarks" are just my way of saying you're not correct without saying why. I learn a lot of things that I won't repeat here because of my relationship with the park, and for that matter a lot of other parks. That's just the way it is.

And your backtracking is funny too.

Oh give me a break. Dippin Dots was selling the gallon bags for about 15 bucks a year ago. And that number is, from my experience, pretty consistant from park to park. If CP is getting a total margin under forty percent for the total season on Dippin Dots i'll eat my hat. The product has too much waste and is too expensive.

And that is just the way it is.