Following is an estimate for the $50,000 figure for the Yogurt Project.
Filler - 8, 16, 32 oz. filler, sealer, lidder 5,500
Filler Supply Pump 3,000
Sanitary Valve 1,500
Process & CIP Piping 5,000
Power Electrical (2) 3 Phase motors 6,000
Process Electrical 3,000
Incubator/Cooler Equipment 2,000
Blast Cooling Fans 1,000
Subtotal Capital Equipment $28,000
Graphic Design Cartons 3,000
Graphic Design Point of Sale 1,000
Graphic Design Marketing Materials 1,000
3 month extra marketing efforts 6,000
Subtotal Packaging/Marketing $11,000
Containers - initial order of 60 day supply 3,000
Receivables - 30 days sales 8,000
Subtotal Operating Capital $11,000
TOTAL YOGURT PROJECT COSTS $50,000
As you see, the equipment and its installation is the majority of the project. The main expense there is for the filler itself, and the electrical mechanical work and sanitary piping required to get yogurt to the filler.
We also have costs to provide an incubator to hold the yogurt at about body temperature, 100°F, until it’s ready to cool to 40°F. We will produce this yogurt as “set in the cup” classic European style. That means that the yogurt is not preset, cultured, in a larger tank, cooled and then filled into containers. It is put into the container warm, is then held several hours while the cultures grow, and then is cooled in place without moving, so as to not destroy the natural gel structure of the yogurt and cause the whey to separate.
About a quarter of the project is for packaging and related marketing.
We’ve also included the necessary capital to purchase the containers and have a month’s worth of sales out in the marketplace before we receive receivables back from the retailer.
The vast majority of costs necessary to produce yogurt are for equipment that we already have and operate for milk, cream, and Jeni’s ice cream. The other stroke of good fortune is the yogurt filler was very inexpensive. A used filler like this in poor condition and requiring refurbishing often costs many times more than the price we are going to have to pay for a filler in good condition.