How Do I Price My Ice Cream Shop Services?

Nate Jones, CPCU, ARM, CLCS, AU
Sep 24
3 min read

Starting an ice cream shop is a sweet business idea—but pricing your products correctly is key to profitability. Whether you're scooping gelato, soft serve, or artisanal flavors, understanding how to price your ice cream shop services can make or break your success. In this guide, we’ll walk you through how to set prices that attract customers, cover your costs, and grow your bottom line.

If you're launching your ice cream shop and need food service insurance, Wexford Insurance is here to help. We specialize in ice cream shop insurance and work with top carriers to protect your business from the unique risks in the dessert industry.

Why Pricing Matters for Ice Cream Shops

Pricing isn’t just about covering costs—it’s about positioning your brand, maximizing profits, and staying competitive. Your pricing strategy should reflect:

Your target market (budget-friendly vs. premium)
Your location (urban vs. rural, seasonal vs. year-round)
Your cost structure (ingredients, labor, rent, insurance)
Your brand identity (artisanal, nostalgic, trendy)

Step-by-Step Guide to Pricing Ice Cream Shop Services

1. Identify Your Cost of Goods Sold (COGS)

Start by calculating the direct costs of producing each item:

Ingredients: dairy, flavorings, toppings, cones, cups
Packaging: napkins, spoons, lids
Labor: hourly wages for scoopers and prep staff
Utilities: electricity for freezers, water, etc.

Use a spreadsheet to track the cost per serving. For example, if a scoop costs you $1.10 to produce, you’ll need to price it higher to make a profit.

2. Understand Your Fixed Costs

These are recurring expenses that don’t change based on how many scoops you sell:

Rent or mortgage
Equipment maintenance
Marketing and advertising
Insurance premiums
Licenses and permits

Divide your monthly fixed costs by your estimated monthly sales volume to determine how much each item needs to contribute to overhead.

3. Research Your Competitors

Visit nearby ice cream shops and note their pricing. Are they charging per scoop, per ounce, or offering combo deals? Use this data to benchmark your own pricing.

4. Choose a Pricing Model

Common pricing models for ice cream shops include:

Per scoop pricing (e.g., $3.50 per scoop)
Tiered pricing (e.g., small, medium, large)
Premium pricing for specialty flavors or toppings
Bundled pricing for combos (e.g., cone + drink)

Make sure your pricing covers costs and leaves room for profit.

5. Factor in Seasonality

Ice cream sales often spike in summer and dip in winter. Consider offering seasonal promotions or adjusting prices during peak months to stay competitive.

6. Test and Adjust

Once you launch, monitor customer feedback and sales data. Are customers responding well to your pricing? Are you hitting your profit margins? Don’t be afraid to adjust.

7. Include Profit Margin

Once you know your costs, add a profit margin. Most ice cream shops aim for 60–70% gross margin. For example:

If your cost per scoop is $1.10
And you want a 65% margin
Your price should be around $3.14

Round up to a clean number like $3.25 or $3.50 for simplicity.

Quick Overview of Insurance Costs to Factor In

While pricing your services, don’t forget to include the cost of essential insurance coverage:

General Liability Insurance – Protects against customer injuries or property damage.
Commercial Property Insurance – Covers your shop, equipment, and inventory.
Workers’ Compensation Insurance – Required if you have employees.
Commercial Auto Insurance – Needed if you operate a mobile ice cream truck.
Equipment Breakdown Coverage – Protects freezers, mixers, and other machinery.

Wexford Insurance specializes in ice cream shop insurance and can help you find affordable coverage tailored to your dessert business.

Final Thoughts

Pricing your ice cream shop services is both an art and a science. By understanding your costs, market, and brand, you can set prices that delight customers and drive profits.

If you're starting an ice cream shop and need food service insurance, Wexford Insurance is your go-to partner. we understand the unique risks of running an ice cream business.

👉Contact Wexford Insurance today