When making ice, there’s the wrong way…
then there’s OLMSTED ICE Way

Ice Estimator

Compare the cost of making your own ice and buying Olmsted Ice.

You might find that it is costing you more than you think.
Olmsted Ice has entered C-Store industry average costs of each part of making your own ice. Feel free to enter your own numbers into this form and see how much it is costing your store to make ice.

Capital Investment

Category Make Your
Own Ice
Buy Ice
Cost of Electrical Wiring

$ 101.00

$0.00
Cost of Plumbing for Drain with Trap

$ 300.00

$0.00
Cost of Plumbing for Water Connection

$ 122.00

$0.00
Carpentry Work and Other Installation Costs

$ 130.00

$0.00
Ice Maker

$ 130.00

$0.00
Ice Merchandiser

$ 1200.00

$0.00
Freight Cost of Ice Maker & Merchandiser

$ 260.00

$0.00
Total Capital Investment

$ 5,357.00

$0.00

Overhead Cost Per Year

Depreciation of Ice Maker

$ 418.75

$0.00
Depreciation of Ice Merchandiser

$ 120.00

$0.00
Maintenance and Repairs

$ 300.00

$0.00
Property Taxes

$ 45.00

$0.00
Total Overhead Costs Per Year

$933.75

$0.00

Operating Cost Per Year

Electricity for Ice Maker

$ 1239.98

$0.00
Water and Sewer

$ 240.00

$0.00
Ice Bags and Ties

3000 Bags X $ .5 Cost Per Bag

$ 300.00

$0.00
Ice Purchased from Olmsted Ice due to Machine Failure or Not Making Enough

$ 350.00

$0.00
Employee Labor

$7.00 /Hour Employee Wage X Hours Bagging Ice Per Year @ Mins. Per Bag

$ 700.00

$0.00
Total Operating Cost Per Year

$2,679.98

$0.00

Make vs. Buy Calculation

Gross Profit

Retail Price of $ 1.79 /Bag X 3,000 Bags Sold Per Year

$5,370.00

$5,370.00
Less Costs

Make: Total Overhead Costs + Total Operating Costs
Buy: $ 0.75 /Bag X 3,000 Bags Sold Per Year

– $3,613.73

– $2,250.00
Net Income

$1,756.27

$3,120.00
Time to Recoup Investment

3.1 Years