at what point is sugaring profitable?

[3rdgen.maple]

Bryan if you are getting 2400 for 45 taps you need to share what the heck you are doing. That is over 53 bucks per tap. If I got those number my 800 Ill have out would give me 42666.66 bucks. The expected income on that 800 after expenses for me should be 10000 if I quite giving some away. Oh and for the ones that say that does not include your labor, well that 10000 is what I get for my labor. Also previous years production has payed for everything already except jugs and misc items. And you guessed it that 10000 will get rolled right back into upgrades until I have reached my magic number.

[farmall h]

Bryanex, are yo sure that dollar figure is not a typo?

[Thompson's Tree Farm]

Bryan is selling tourism for the big bucks, maple is just the hook to haul 'em in

[BryanEx]

Thompson's Tree Farm is absolutely correct. Everyone here is focused on price per gallon while I'm selling entertainment/learning experience/history. I'm surrounded by large commercial sugar bushes and am a very small player. I needed something different, marketable, and manageable... which I now have.

Bryan if you are getting 2400 for 45 taps you need to share what the heck you are doing.

Certainly... cuz I'm pretty proud of my business plan. I can elaborate on the exact numbers and my program if you wish but basically I invite families to come out and make their very own syrup AND learn how to do it in the process. I host three families on Saturday and three more on Sunday. They collect just enough sap to boil down to 1 litre (quart in US terms). In the process, which takes 3 hours from arrival to departure, they learn all about maples and making syrup. Taffy on snow is included if there is snow (I posted about that issue in this thread) and they leave with two 375 ml bottles plus two 100 ml bottles for souvenirs or for grandparents which are fully filtered, bottled, labeled, and graded. A CD of photos is also included, taken by my able-bodied assistant while my guests are collecting, boiling, bottling, etc.

My revenues are 3 families a day twice a week for an average of 6 weeks at $65 per session for a total of $2340. I also sell copies of Backyard Sugarin if they want to try it themselves along with having extra syrup available for purchase at $12 for 500 ml in Mason jars.

I spend about $150 on bottles & labels per year, $15 per year for a two year grading set, I bring in my own wood which according to another thread is about $15 per cord based on our depleting fossil fuels and eventual world crisis, and not a cent on advertising. I brought out a few families the first year to test out timing and entertainment value and they ended up telling several friends... who told some others... and so on. At this point I have a waiting list and either need to expand to a second evaporator or bump prices to increase revenue and reduce demand.

If I got those number my 800 Ill have out would give me 42666.66 bucks.

That's the catch to my business model. The larger you get the less profitable it would be and the more difficult to pull off. The first part is you need individual evaporators that can handle small batches (steam pans for example). Second, you need staff to monitor and/or coach each evaporator (small hands and high temperatures need to be monitored closely), third, I would be far more concerned about the liability laws in the States than Canada, and fourth, the further away people have to travel to collect sap the longer it takes to cycle families through. All of my sugars are within an 800 foot radius of the evaporator. Enough to keep young kids busy - not bored.

I've tried to figure out a way to take things bigger than two evaporators without success due to the staffing or logistic issues but a large operation that wanted to offer a make your own syrup sideline could make some very good added revenue if done correctly. If you want more detailed info or have any questions just let me know. I have yet to describe to someone what I'm doing and not have them interested in visiting to make their own.

[BryanEx]

Bryanex, are yo sure that dollar figure is not a typo?

It's not exact but it works out to roughly $250/gallon.

[farmall h]

Thank you for the explanation, it all makes sense now.

[trackerguy]

Maximum profit is when you stick with visiting someone else's sugarhouse.

[BryanEx]

KenWP... I'm wondering if my business model would circumvent the Quebec quota laws for you. I'm not familiar with the regs... but just an idea.

[3rdgen.maple]

Bryan do you not have to have a liability insurance to do this.

[BryanEx]

Bryan do you not have to have a liability insurance to do this.

Yes... but I didn't include that expense because I already carry a "hobby farm" policy and don't qualify as a legal farming entity until I reach $7500 gross sales according to our tax laws. You can visit me and be kicked by a horse, have a Christmas tree fall on you, spill boiling syrup, and be attacked by a rooster... and I'm covered. I have no doubt liability issues would be more of a concern in the US.