Junior Achievement 5.5 “Priced to Sell”

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

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

Even More Business Costs:  Supplies:  Money for materials you need to do business  Utilities:  Money to the power and phone companies.  Loan:  Money you borrow from the bank or credit union to start your business.

“When you choose to be pleasant and positive in the way you treat others, you have also chosen, in most cases, how you are going to be treated by others.” - Zig Ziglar

Do you agree with this statement? Why or why not?

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

It certainly is important to remember to be positive and pleasant during your day at JA BizTown!

Today we will be learning about the importance of setting a “selling price” of a good or service in order to earn a profit.

Selling Price: The amount of money a buyer pays and a seller receives for the purchase of a good or service.

Please turn to page 82 in your workbook to answer the questions on the “Setting a Selling Price” worksheet.  Remember, “profit” is the money earned after all your expenses are paid.  “Inventory” means all the items for sale that you have in the store (in stock).

Now turn to page 83 in your workbook. Work as a team to set prices for the items on this list. This business needs to pay back the loan of 63 dollars and still earn a profit. How many items do you have to sell? What could the average price per item be?

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

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

Advertise your team’s business and actively seek consumers.

Set up creative and innovative displays.

Do not lower prices just to get rid of your “inventory” (your items for sale).

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

Quiz Time! Try the quiz on page 84, then complete your Word Map on page 85.