Business Course for Kids / Sales

The Price is Right: Understanding the Value of What You Sell

We’ve talked about transactions, trust, and finding common ground. Now, let’s dive into something super important: pricing! It’s all about figuring out how much to charge for the awesome things you’re selling.

What is Pricing?

Pricing is deciding how much money to ask for your product or service. It’s like putting a price tag on the cool stuff you make or do!

Examples:

  • Deciding to sell your homemade lemonade for $1 a cup
  • Charging $5 to mow your neighbor’s lawn
  • Asking for 50 cents for each friendship bracelet you make

Why is Pricing Important?

Getting your pricing right is super important because:

  1. It Helps Your Business Grow: If you price things right, you can make enough money to keep your business going and growing.
  2. It Affects Your Sales: Price too high, and people might not buy. Price too low, and you might not make enough money.
  3. It Shows the Value of Your Work: Your price tells people how valuable your product or service is.

The Price-Value Connection

Here’s a secret: price isn’t just about money. It’s about value! Value is how much people think your product or service is worth to them.

Let’s see how this works:

  1. You Have Something Awesome: Like super-comfy slime that doesn’t stick to clothes.
  2. People Want It: Your friends think it’s the coolest thing ever.
  3. You Set a Price: You decide to sell it for $3 a container.
  4. People Decide If It’s Worth It: Your friends think about whether your awesome slime is worth $3 to them.
  5. The Sale Happens (or Doesn’t): If they think it’s worth it, they buy it. If not, they don’t.

How to Think About Value

Thinking about value is like being a mind reader. Here’s how you do it:

  1. Think About Your Customer: What do they really want or need?
  2. Consider the Benefits: How does your product or service help them?
  3. Compare to Other Options: What else could they buy instead?
  4. Think About Quality: Is your product better than others?
  5. Consider Convenience: Does your product or service make life easier?

Value-Boosting Tools for Young Entrepreneurs

Here are some cool ways to make people think your product or service is super valuable:

  1. The “Wow” Factor: Make your product look or work in a way that surprises and delights people. Example: Your lemonade stand has a cool spinning sign that catches everyone’s eye.
  2. The “Extra Special” Touch: Add something extra that makes your offer unique. Example: You give a free sticker with every cupcake you sell.
  3. The “Problem Solver”: Show how your product fixes a problem or makes life easier. Example: Your dog-walking service includes a text update and photo for busy pet parents.

Fun Activity: The Price is Right Game!

Let’s play a game to practice thinking about price and value. You’ll need a few friends for this.

  1. Collect 5-10 common items (like a pencil, a toy car, a water bottle, etc.).
  2. Take turns being the “seller” and the “buyers”.
  3. The seller picks an item and decides on a secret price.
  4. The buyers guess the price, thinking about how valuable the item is.
  5. The seller reveals the price. The buyer who guessed closest wins that round!
  6. After each round, talk about why the seller chose that price and why the buyers guessed what they did.

Think About It!

  • If you were selling painted rocks, how would you decide what to charge?
  • Can you think of something that seems expensive but people buy anyway? Why do you think they buy it?
  • If you could add something to your lemonade stand to make people willing to pay more, what would it be?

Remember, pricing is like finding the perfect balance on a seesaw. You want to make sure you’re earning enough money, but you also want your customers to feel happy with what they’re getting. When you get it right, everyone wins!

Song: The Value Voyage

Verse 1:
Sailing on the business sea, there’s a treasure to be found
It’s not just gold or silver, it’s pricing safe and sound
How much for your lemonade? Your slime or painted rocks?
The answer lies in value, so let’s unlock that box

Pre-Chorus:
Think of your customer, what do they really need?
How does your product help, does it make their day succeed?
Compare it to other things, is yours a cut above?
Quality and convenience, all wrapped up with love

Chorus:
On this Value Voyage, we’re setting the right price
Not too high, not too low, gotta make it nice
It’s more than just a number, it’s what your work is worth
On this Value Voyage, watch your business grow and flourish

Verse 2:
Add a “Wow” factor, make your offer shine
Give an extra special touch, make it one of a kind
Be the problem solver, ease somebody’s day
That’s how you boost the value, make people want to pay

(Pre-Chorus)
(Chorus)

Bridge:
From lemonade stands to dog-walking gigs
The price you set tells a story big
It’s a balance beam, a seesaw ride
Get it right, and you’ll hit your stride

(Chorus)

Outro:
So sail on this Value Voyage, with pricing as your guide
Where customers are happy, and your business thrives with pride
In the world of give and take, it’s well understood
The right price makes everyone feel good

Question More, Action Knowledge.

Remember, at QMAK, we don’t just teach; we empower. We don’t just inform; we inspire. We don’t just question; we act. Become a Gold Member, and let’s unlock your child’s full potential, one question at a time.

Facebook Twitter Google-plus Pinterest
Copyright 2024 © All rights Reserved. Question More, Action Knowledge. QMAK.com