Lesson 2 Money Smart
Sweet Success: Lemonade Stand Economics
High school ____ not only where we study different subjects but also where we learn about life.
We are a group of students that get together every ____ to discuss ways to make a difference in our society.
In this newsletter, I would like to ____ the story of how we participated in our community’s international food festival.
____ top of raising enough money to make a donation, we learned a lot about how to create and carry out a business plan.
Here is ____ story.
1 Setting Up Our Plans
____ What to Sell:
The first step we took was to decide what to ____
Some of the ideas that we discussed included cotton candy, corn dogs, and ____
Out of these options, we agreed that a lemonade stand would be the ____ for us, as we would need only a good recipe and a few ingredients.
We also found out that no other stand had signed up to sell drinks, so ____ seemed to be the natural choice.
____ the Perfect Recipe:
Once we decided on lemonade, ____ needed the perfect recipe.
Fortunately, we ____ able to find a simple one online.
We just needed freshly squeezed lemons, sugar, water, ____ ice.
After trying out different variations ____ the recipe on friends and family, we decided on the final recipe.
It would make about 1.5 liters of ____ which could be sold as five cups.
____ Lemonade Recipe
Boil the sugar and 1 cup of water ____ Set it aside to cool.
____ the lemons to make 1 cup of fresh lemon juice.
Blend ____ lemon juice with 3 cups of water. Then add the syrup from Step 1.
Serve the lemonade over ice. Add ____ lemon slices for decoration.
2 Pricing
The main goal of setting up the lemonade stand was to make enough profit for ____ donation to the local children’s home.
To maximize our profit, we needed to decrease our costs ____ increase our revenue.
Profit: The money that ____ make in business when revenue exceeds costs
Revenue: The money ____ by the business
____ The money spent by the business
Since we wanted to minimize costs, our first step was to find the most affordable ingredients ____ cups available.
As we were researching prices, we found that buying ingredients and cups in bulk would be ____ smartest way to go.
The chart below shows how much we ____ save by buying in bulk.
Now that we had found out how to minimize ____ we needed to decide on a reasonable price for a cup of lemonade.
We ____ a festival organizer to gather information.
First, we inquired about the previous year’s drink prices, and she told us that soft ____ had been sold for $1.50 per cup.
Considering that freshly squeezed lemonade usually costs more, ____ decided to sell each cup for $2.
Based on our recipe and the costs of the ingredients and cups, each cup of ____ would cost us about $0.70 to make.
With ____ selling price of $2, we expected a profit of $1.30 per cup.
Regarding attendance, we learned that the festival organizers were expecting around 400 people for each of the two ____ of the festival.
We thought we could reasonably sell lemonade to half of the people attending, so we aimed to ____ 400 cups over the two days.
If we could do that, our revenue would amount ____ $800!
____ this revenue wouldn’t be pure profit.
____ needed to subtract our costs from it.
In addition to the cost of $280 required to make 400 cups, we also had to factor in ____ $6 we needed for posters and fliers.
If we reached our goal, we would be able to make ____ in profit.
That would be a big ____
3 Marketing
Location-Based ____
When the organizer asked us where we wanted our stand, we knew that location was ____ to be important.
She sent us a map showing which foods were going to be sold at which stands, and we chose ____ opening between the tteokbokki and spicy kebab stands.
Who could resist a cool, sweet ____ after some spicy and salty food?
Our ____ Strategies:
Developing marketing ____ to attract more customers was the most enjoyable part.
In addition to designing posters and fliers, we ____ explored various online marketing techniques.
One of our club members suggested we ____ customers free refills for mentioning our stand on their social media accounts.
We all agreed that was ____ great way to spread the word.
We also planned to install a photo zone and give coupons for a 10% discount to customers who posted photos they ____ there with the tag “#sweetsuccess,” the name of our stand.
Mission completed! Our lemonade stand was a huge ____
Because of the hot weather, we ____ up purchasing extra bags of ice.
We also had to give free refills and discounts to some customers, ____ we did as part of our marketing strategy.
Even with these extra costs, however, we were still able to make a profit ____ $479.
Even though we ____ reach our profit goal, we were happy that we were able to make a big donation to the children’s home.
We ____ learned a valuable lesson in economics, a lesson we never could have learned in the classroom!