Summary:
The meeting focused on teaching students about cost models and pricing strategies for their businesses. Elena, a local business owner, shared her expertise on pricing products, particularly for retail and food businesses. She explained how to calculate costs for ingredients, labor, and overhead, and emphasized the importance of factoring in all expenses when setting prices. Elena introduced the concept of markup, recommending a 4x markup for retail products and a 3x markup for food items. She also discussed the 3-3-3 rule for food businesses, which divides costs into three equal parts: food, labor, and utilities. The session concluded with a brief mention of marketing support available to students through Lonely Oak Arts, which provided each participant with a $30 marketing package.
Next Steps:
- All students: Finalize and submit your business name by next week’s session (implied by instruction to have it thought through by next week for the marketing session).
- Doneko family: Pick up your $30 marketing package from the chamber.
Summary:
System Name Entry Instructions
Atascadero instructed participants to right-click on their names and add their business names to the system. He emphasized the importance of having visible names for the guest speaker to call on them. Atascadero also reminded parents that their students might be recorded and gave them the option to opt out if they were uncomfortable with it.
Business Naming and Cost Models
The meeting focused on discussing cost models and business naming, with Atascadero emphasizing the importance of thoughtfully considering business names for the upcoming marketing discussion next week. Atascadero introduced a guest speaker, a local business owner from Patch Thrift in Atascadero, but the transcript did not include further details about their discussion.
Product Pricing Calculation Strategies
Elena taught the group how to calculate product pricing, using the Orange Julius recipe as an example to demonstrate breaking down ingredient costs and determining selling price. She explained that retail products should be priced 4 times their cost, while food products should be priced 3 times their cost, with a 10% buffer for errors. The group learned about cost calculations including materials, labor, and overhead, with Elena emphasizing the importance of including all costs in pricing decisions. Atascadero mentioned that Junior CEOs would receive $30 in marketing materials from Lonely Oak Arts, which could be used to help offset marketing costs.
