How to Start a Jam Business

Part 1 - How to start a Jam business - Background

A jam business makes different flavors of jams and jellies, which are packaged into jars for distribution. Businesses may sell their jams to customers directly, or they might sell to retailers. These spreads are put on toast, used in cookies and cakes, and incorporated into many other foods. Jam businesses make different flavors of jams and jellies, which are sold to customers either directly or through retailers.

According to one report, the global fruit jam, jelly, and preserve market is projected to reach nearly $9 billion by 2027. Most impressively, it’s grown steadily — even through the Great Recession. The market for jams, jellies, and preserves is strong, growing, and has many opportunities for new startups.

You may also be interested in additional business ideas for teens.

Our guide is in 3 parts:

• Part 1 - How to start a Jam business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a jam business?

Since a jam business can be started from a residential kitchen, the costs associated with starting a business are quite low. The expenses can be categorized into equipment costs and supply costs.

Business owners who have extremely tight budgets may be able to open a business using only equipment that’s already in their kitchen. Jams, jellies, and preserves can be made in one pot, and jars can be sterilized by boiling water in a large pan.

Business owners who have a little capital to work with, however, may want to invest in some basic equipment, such as a juice extractor, slicer, mixer/grinder, and pulper.

The supplies that business owners need include:

• Juice extractor: $50

• Fruit slicer: $20

• Mixer/grinder: $100

• Pulper: $35

• Jars: roughly $1 per jar in bulk

• Pectin: $3 per box

• Fruit: $1-5 per pound

• Sugar: $23 per 50 pound bag

• Additives

Business owners can reduce their initial supply costs by purchasing jars and pectin through wholesale suppliers, who typically charge much less than retailers do.

Business owners can also pick the fruit they need themselves. Going to you-pick farms when the fruit is in season. not only lets business owners greatly reduce their fruit costs — which are one of the biggest supply costs — but it also provides an opportunity to use local ingredients in jams.

What are the ongoing expenses for a jam business?

The ongoing expenses for a jam business are relatively low. Business owners must purchase additional jars, fruit, and pectin, and they need to pay for the electricity or natural gas used when preparing jam. The other significant ongoing expense is the cost of shipping or delivering jams to customers, but this cost is usually built into the price that customers are charged.

Who is the target market?

A jam business’s ideal customer is a local business that regularly uses jam or jelly, such as a restaurant that wants to serve up locally made jams with breakfast or a small bakery that needs jams for certain baked goods. Such a business won’t pay retail prices for jams and jellies. A business will, however, place regular orders that can provide stable income.

How does a jam business make money?

A jam business makes money by selling jams, jellies, and preserves. When sold retail, jams may be sold individually or in variety packages (e.g., three jams together, etc.). When sold wholesale, jams may be sold in larger jars (i.e., for commercial use such as in a bakery) or in lots of small jars (i.e., for resale by a grocer).

How much can you charge customers?

Jams, jellies, and preserves are normally priced according to margin. Michael Adams recommends seeking a margin of 40 to 60 percent over the cost of making a product when selling through distributors. On top of this, distributors add another 30 percent margin, and retailers typically add a final 30 to 50 percent margin. The end result is that a jam that costs $1.48 per jar to make has a retail price between $6.04 and $8.46.

How much profit can a jam business make?

How much a jam business owners can make depends on how well they market their products and how many distribution channels they have. Reagan Boon, a small but successful jam business owner, makes about $25 per hour after all the work required to run her business is taken into account. Working full time, this would equate to an income of $1,000 per week.

How can you make your business more profitable?

A jam business can increase its sales and revenue by offering jams in unique packaging. For instance, customers may purchase variety packs as gifts, or brides might buy customized sample-size jams as wedding favors.

Day-to-Day and Growth

What happens during a typical day at a jam business?

To maximize efficiency, most jam business owners spend different days focusing on different tasks. For example, a business owner might:

• Sell jams and jellies at a farmer’s market

• Make jams

• Market their business and take care of administrative tasks

What are some skills and experiences that will help you build a successful jam business?

In order to run a jam business, it’s necessary to know how to safely jar them. Many online companies, local canneries and online companies offer courses on canning and preserving foods. For example, Michigan State University and Universal Class both offer online courses on the subject. Glass Rooster Cannery in Sunbury, Ohio and Fresh from the Gardens in Dallas, Texas offer in-person classes. Healthy Canning maintains a directory of university extension classes, which are often free or have a minimal charge.

After completing a course, business owners may want to purchase a couple of books to keep as references. Canning and Preserving for Beginners, and the Ball Complete Book of Home Preserving are two popular works.

What is the growth potential for a jam business?

Many jam businesses start out as small operations, with many business owners making jams, jellies, and preserves in their kitchens. Business owners may initially sell only by word of mouth or at a roadside stand where customers pay on their honor.

As a business grows, business owners may purchase a stand at a market or open a retail location. Most businesses don’t open multiple locations. Instead, they grow beyond a single location by acquiring more and more wholesale clients.

Note: When starting a jam business from home, it’s important to abide by all your state’s cottage food laws. PickYourOwn.org has compiled a list of each state’s applicable laws.

What are some insider tips for jump starting a jam business?

When developing jam, jelly, and preserve recipes, business owners should come up with unique and complex flavors. In Jo-Ann’s experience, these sell much better than plain flavors do. For example, she had a peach jam that hardly sold at all. She revisited her recipe and added bourbon and vanilla. The resulting jam is now one of her best sellers.

How and when to build a team

Many jam businesses start out as one- or two-person operations, and some business owners never hire employees. Those that do typically bring on employees once the work becomes too much for them to handle by themselves. At this point, a business’ revenue can usually support an employee’s salary.

Part 2 - Is a Jam business the right fit for you?

Part 3 - Action plan to launch your Jam business in 90 days