Lesson 2 Money Smart
Sweet Success: Lemonade Stand Economics
____ school is not only where we study different subjects but also where we learn about life.
We are a group of students that get together every week to discuss ways to ____ 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.
On top of raising enough ____ to make a donation, we learned a lot about how to create and carry out a business plan.
____ is our story.
1 Setting Up Our Plans
____ What to Sell:
The first step we took was to ____ what to sell.
Some of the ideas that we discussed ____ cotton candy, corn dogs, and lemonade.
Out of these options, we agreed that a lemonade stand would be the easiest for us, as we would ____ only a good recipe and a few ingredients.
We also found out that no ____ stand had signed up to sell drinks, so lemonade seemed to be the natural choice.
Finding the Perfect ____:
Once we decided on lemonade, we needed the perfect ____.
____, we were able to find a simple one online.
We ____ needed freshly squeezed lemons, sugar, water, and ice.
After ____ out different variations of the recipe on friends and family, we decided on the final recipe.
It would make ____ 1.5 liters of lemonade, which could be sold as five cups.
Our Lemonade ____
Boil the ____ and 1 cup of water together. Set it aside to cool.
Squeeze the lemons to make 1 cup of fresh ____ juice.
Blend the lemon juice with 3 cups of ____. 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 ____ enough profit for a donation to the local children’s home.
To maximize our profit, we ____ to decrease our costs and increase our revenue.
Profit: The money that you make in business when revenue ____ costs
Revenue: The ____ earned by the business
Costs: The ____ spent by the business
Since we wanted to minimize costs, our first step was to find the most affordable ingredients and cups ____.
As we were researching prices, we found that buying ingredients and ____ in bulk would be the smartest way to go.
The chart below shows how much we could save by ____ in bulk.
Now that we had found out ____ to minimize costs, 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 drinks had been ____ for $1.50 per cup.
Considering that freshly squeezed lemonade usually costs more, we ____ to sell each cup for $2.
Based on our recipe and the costs of the ingredients and ____, each cup of lemonade would cost us about $0.70 to make.
With a selling price of $2, we ____ a profit of $1.30 per cup.
Regarding attendance, we learned that the festival ____ were expecting around 400 people for each of the two days of the festival.
We ____ we could reasonably sell lemonade to half of the people attending, so we aimed to sell 400 cups over the two days.
If we could do that, our revenue ____ amount to $800!
____, this revenue wouldn’t be pure profit.
We needed to subtract our costs ____ it.
In addition to the cost of $280 required to make 400 cups, we also had to factor in the $6 we ____ for posters and fliers.
If we reached our goal, we would be ____ to make $514 in profit.
That ____ be a big donation!
3 Marketing
____ Marketing:
When the ____ asked us where we wanted our stand, we knew that location was going to be important.
She sent us a map showing which foods were going to be sold at which stands, and we chose an opening between the tteokbokki and spicy kebab ____.
Who could resist a cool, sweet lemonade after some ____ and salty food?
Our ____ Strategies:
Developing ____ strategies to attract more customers was the most enjoyable part.
In addition to designing posters and fliers, we also ____ various online marketing techniques.
One of our club ____ suggested we offer customers free refills for mentioning our stand on their social media accounts.
We all ____ that was a great way to spread the word.
We also ____ to install a photo zone and give coupons for a 10% discount to customers who posted photos they took there with the tag “#sweetsuccess,” the name of our stand.
Mission completed! Our lemonade stand was a ____ success!
Because of the ____ weather, we ended up purchasing extra bags of ice.
We also had to give free ____ and discounts to some customers, which we did as part of our marketing strategy.
Even with these extra costs, however, we were still ____ to make a profit of $479.
____ though we couldn’t reach our profit goal, we were happy that we were able to make a big donation to the children’s home.
We also learned a valuable lesson in economics, a lesson we never could have learned in the ____!