Episode 6: What Selling Price Should I Set?

You're just one step away and you're really in the business! That's right, you need to set the selling price for your product! 

Have you thought how much your customer will pay for a glass (300 ml) of delicious homemade lemonade?

Let's see what experience these young entrepreneurs have had: 

Continue the discussion with a friend / parent to better understand what it means to set the right selling price so that the customer buys your product and you make a profit.

• What are the elements that influence the selling price?
• How does promotion affect the selling price?
• Why is the price of a water higher in a restaurant than in a supermarket?

Selling price is a key element for the success of your business!

The price on a product label is not chosen at random.

To determine the selling price, you must take into account several elements:

• how much did it cost to produce it? (eg how much you paid for lemons, honey/sugar, napkins, glasses/bottles, etc)
• what other costs do you have? (eg you may have to pay rent for the stall)
• what profit do you want to make?
• attention to the competition too! 

Example: if it costs you 3 lei to produce a glass of lemonade and you want to make a profit of 2 lei / glass, then the selling price for a glass of lemonade could be 5 lei.

Challenge to direct experience: 

You are an entrepreneur and you have a muffin business. The production cost of a muffin is 4 lei, you aim to make a profit of 2 lei, and customers are willing to buy a muffin for 7 lei. How much will you sell the muffin for? 

1. 4 lei
2. 6 lei
3. 7 lei

Why?

If you want, you can send me your answer at office@kenacademy.org or in a private message on the page of Facebook.

Success!

#staytuned #do the Challenge #learn at home