Run a Rural Ice Delivery Service

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PRICES AND PROFITS

The prices you charge for your ice should be based on several factors . . . including your operating costs, of course, but also taking into consideration such variables as the distance you have to drive to deliver any given order, the kinds and quantity of ice purchased, the frequency of business from each client (certainly a one-time customer shouldn't get the same low rate as a regular route buyer) . . . and any special problems presented by the job (if, for instance, you have to climb several flights of stairs to make a delivery).

In general, we pay our supplier an average of 1-1/2¢ per pound or $4.50 per cake . . . and charge our customers between 6¢ and 8¢ a pound. Blocks that are purchased whole at our icehouse are the least expensive, of course . . . whereas a delivery of 200 pounds of crushed ice to a hotel 20 miles away would be charged at our highest rate.

The secret to making a good profit, of course—and to keeping your retail rates competitive—is to trim your own purchasing costs as much as possible. Don't be afraid, then, to dicker a little with your supplier. If you can, work out a quantity contract to get the best possible wholesale price. (Incidentally, always be sure to specify that you want precut, or scored, blocks . . . cakes that are machine-notched so that you can easily split them into 25- or 50-pound units.) In many cases you can get a better rate from your dealer by paying cash and by loading your own truck. Remember, even if you end up paying only a quarter or so less per cake, you'll come out way ahead over the months and years.

THE LAW AND YOU

Every business has to deal, from time to time, with government agencies . . . and an ice service is no exception. Before you build your icehouse, or so much as buy your first load of frozen blocks, take a trip to your town hall or county seat and check into local and state ordinances: zoning restrictions, building codes, licensing requirements, etc. You should also be sure to call your board of health to find out whether ice is considered a foodstuff in your area . . . and if so, what measures you'll have to take to comply with the relevant statutes.

Insurance is another important area. Naturally, you'll need adequate coverage for your truck, and you may also want some protection against possible litigation ... such as claims resulting from injuries occurring in your yard or icehouse. After 13 years of hearing (and worrying about) increasingly nightmarish lawsuit stories, we've also purchased a fairly inexpensive product-liability policy that protects us in case someone claims to have gotten sick from our ice. We've never had such a complaint—and chances are we never will—but we do feel the premium is a small price to pay for our peace of mind.

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