junior achievement 5.5 “priced to sell”. vocabulary review: business costs advertising: the...

Junior AchievementJunior Achievement5.55.5

““Priced to Sell”Priced to Sell”

Vocabulary Review: Business CostsVocabulary Review: Business Costs

Advertising:Advertising: The promotion of a product or service.The promotion of a product or service. Health Care:Health Care: Helping with medical expenses.Helping with medical expenses. Philanthropy:Philanthropy: Helping others in need.Helping others in need. Professional Services:Professional Services: Expert help.Expert help.

More Business Costs:More Business Costs:

Property Tax:Property Tax: Money the city charges for their services.Money the city charges for their services. Recycling:Recycling: Paying people to reuse things you’re done with.Paying people to reuse things you’re done with. Rent:Rent: Money to the owner of your building.Money to the owner of your building. Salary:Salary: Paychecks to your employees.Paychecks to your employees.

Even More Business Costs:Even More Business Costs:

Supplies:Supplies: Money for materials you need to do Money for materials you need to do

businessbusiness Utilities:Utilities: Money to the power and phone companies.Money to the power and phone companies. Loan:Loan: Money you borrow from the bank or credit Money you borrow from the bank or credit

union to start your business. union to start your business.

““When you choose to be pleasant When you choose to be pleasant and positive in the way you treat and positive in the way you treat others, you have also chosen, in others, you have also chosen, in most cases, how you are going to most cases, how you are going to

be treated by others.”be treated by others.”

- Zig Ziglar- Zig Ziglar

Do you agree with this Do you agree with this statement?statement?

Why or why not?Why or why not?

How do you think you will be treated by How do you think you will be treated by your customers at JA BizTown if you are your customers at JA BizTown if you are grumpy? How will they treat you if you grumpy? How will they treat you if you

treat them well?treat them well?

It certainly is important to It certainly is important to remember to be positive and remember to be positive and

pleasant during your day at JA pleasant during your day at JA BizTown!BizTown!

Today we will be learning about Today we will be learning about the importance of setting a the importance of setting a “selling price” of a good or “selling price” of a good or

service in order to earn a profit.service in order to earn a profit.

Selling Price:Selling Price:The amount of money a buyer The amount of money a buyer

pays and a seller receives for the pays and a seller receives for the purchase of a good or service.purchase of a good or service.

Please turn to page 82 in your Please turn to page 82 in your workbook to answer the questions workbook to answer the questions

on the “Setting a Selling Price” on the “Setting a Selling Price” worksheet.worksheet.

Remember, “profit” is the money earned Remember, “profit” is the money earned after all your expenses are paid.after all your expenses are paid.

““Inventory” means all the items for sale that Inventory” means all the items for sale that you have in the store (in stock).you have in the store (in stock).

Now turn to page 83 in your Now turn to page 83 in your workbook. Work as a team to set workbook. Work as a team to set prices for the items on this list.prices for the items on this list.

This business needs to pay back the loan of This business needs to pay back the loan of 63 dollars and still earn a profit. How many 63 dollars and still earn a profit. How many items do you have to sell? What could the items do you have to sell? What could the

average price per item be? average price per item be?

Let’s look at ways you can maximize Let’s look at ways you can maximize your profit.your profit.

Listen to your business advisor Listen to your business advisor (teacher or volunteer) when you (teacher or volunteer) when you

price items.price items.

Advertise your team’s business and Advertise your team’s business and actively seek consumers.actively seek consumers.

Set up creative and innovative Set up creative and innovative displays.displays.

Do Do notnot lower prices just to get rid of lower prices just to get rid of your “inventory” (your items for sale).your “inventory” (your items for sale).

People have to spend their money. People have to spend their money. Remember, BizTown money is only Remember, BizTown money is only good on the day you are there, so good on the day you are there, so

spend it!spend it!

Quiz Time!Quiz Time!

Try the quiz on page 84, then Try the quiz on page 84, then complete your Word Map on page complete your Word Map on page

85.85.