December 16, 2022
Marketplace recently published an article where Clinical Associate Professor, Jay Zagorsky, discusses the operations and profitability of the firework business.
Owner of PyroSpot Fireworks, Craig LaFleur, has been in the firework business for more than 10 years. The operational cost of running his dream business – inspired by childhood memories with his father – are quite high. Rising supply chain costs have meant higher invoices for firework businesses, with the price of shipping containers rising from $8,000 in 2019 to about $45,000. LaFleur also pays for a tent, year-round storage space, a lease and storage equipment, running about $150,000.
The average markup for fireworks is roughly three times the wholesale price. Buying a case of fireworks for $100 means the business owner will likely rake in revenue of $300. Zagorsky notes, however, that it is difficult to get a true sense of a fireworks stand’s average profit margin or total revenue due to the other variable costs involved in setting up the business. He states, “Some of the key benefits of running a fireworks business are that it’s seasonal work, allowing people to take on other jobs, and it’s similar to running other types of retail businesses, so the skill set is transferable”.