For many retailers, fudge is more than a popular item for sale. It’s the lion’s share of profits, too. At Kittery Trading Post, for example, fudge accounts for about $250,000 in revenue and sells at a 60% gross profit margin. According to Fox Keim, that’s especially outstanding when compared to all other products, which have a 35% to 38% margin. What’s more, fudge produces the highest dollar per square foot of any item in the store.
Most important, fudge can boost overall sales, as well. Take Franklin’s General Store. About $320,000 of its $1 million in gross sales is from fudge, at a 70% profit margin. But, in addition, says Jim Holley, “When people have a taste of fudge and joy in their day, not only do they buy fudge, but it puts them in the mood to buy other things in our store.”
“Selling Calico’s fudge is the right thing to do,” says Holley. “It will be a home run.”