Party Favor Mogul: Crafting a Winning Business Proposal
Materials Needed:
- Craft supplies to make one sample party favor (e.g., small bags, ribbon, beads, candy, cardstock for tags, etc. - whatever you'd like to make!)
- Receipts or online prices for all craft supplies to know their cost
- Calculator
- Paper and pen or a computer for drafting the proposal
- A sample "client request" (see Step 1)
Lesson Plan & Activities
Introduction: You've Got a Client! (5 minutes)
Welcome, Ella! Today, you are the CEO of "Ella's Excellent Events." You've just received a request from a new client who needs custom party favors for an upcoming birthday party. Your job is to create a professional proposal that tells the client what you will make for them and how much it will cost. This is how small businesses win new projects!
The Client Request:
"Hello! I'm planning a birthday party for my child.
Theme: Space Adventure
Number of Guests: 15
Date Needed: Two weeks from today
I need a creative, hand-made party favor for each guest. Please send me a proposal with your idea and the total cost. Thank you!"
Step 1: Design and Create Your Prototype (20 minutes)
Before you can figure out a price, you need to know exactly what you're selling! Your first task is to design and create one sample party favor that fits the "Space Adventure" theme.
- Brainstorm some ideas. Could you make a "Meteorite" candy bag? A "Planet" bracelet? A "Rocket Ship" bookmark?
- Using your craft supplies, create one complete party favor. This is your prototype.
- As you create it, make a detailed list of every single material you used. For example: 1 cellophane bag, 2 pieces of ribbon, 1 planet charm, 5 star-shaped beads, 1 printed tag, 3 pieces of chocolate. Be super specific!
Step 2: Calculate Your Costs (15 minutes)
This is the most important step for any business owner! You need to know your Cost Per Item. This is how much money you spend to make just one favor. We'll use your prototype list and the prices of your supplies to figure this out.
Let's create a "Cost Calculation Sheet." Grab a piece of paper and make columns like this:
| Material | Total Price Paid (for the pack) | # of Items in Pack | Cost Per Single Piece |
|---|---|---|---|
| Example: Cellophane Bags | $3.00 | 50 bags | $3.00 ÷ 50 = $0.06 per bag |
| Example: Planet Charms | $5.00 | 20 charms | $5.00 ÷ 20 = $0.25 per charm |
- Fill out this sheet for every material on your prototype list.
- Once you have the cost for each single piece, add them all up.
- Total = Your Cost Per Item! This is how much it costs YOU to make one favor.
Step 3: Set Your Sale Price (10 minutes)
You can't just charge the client what it costs you to make the item—you wouldn't make any money! Businesses add a markup to make a profit. A common starting markup for handmade goods is to double the cost of materials (this is a 100% markup).
- Formula: Your Cost Per Item x 2 = Your Sale Price Per Item
- Example: If your cost per item is $1.15, your sale price would be $1.15 x 2 = $2.30.
- Calculate the Sale Price for your party favor. Do you think this is a fair price? You can adjust it up or down, but make sure you can explain why!
Step 4: Create the Project Proposal (20 minutes)
Now it's time to put everything together in a professional proposal for your client. A good proposal is clear, contains all the necessary information, and looks nice. You can type this or write it neatly.
Your proposal must include:
- Your Company Name: (e.g., Ella's Excellent Events)
- Prepared For: (The Client's Name)
- Project: Space Adventure Party Favors
- Item Description: Write 2-3 sentences describing the amazing party favor you designed. Make it sound exciting! Mention the key materials (e.g., "a shimmering organza bag filled with chocolate 'meteorites' and tied with a satin ribbon holding a personalized 'Saturn' name tag.").
- Cost Breakdown:
- Price Per Favor: (Your Sale Price from Step 3)
- Number of Favors Needed: 15
- Total Project Cost: (Price Per Favor x 15)
- Timeline: State that the project will be completed by the client's deadline.
- Closing: A friendly closing like, "Thank you for considering my proposal! I look forward to creating these special favors for your event."
Assessment & Presentation (5 minutes)
Read through your final proposal. Is it clear? Is the math correct? Does it look professional? This proposal is your final project for this lesson.
Present your proposal to your "client" (a parent or family member). Explain your design and how you calculated the final cost. Great work, CEO!
Extension & Challenge Activity (Optional)
Real businesses also have to account for their time. This is called labor cost.
- Time yourself making one more prototype. How long did it take? 5 minutes? 10 minutes?
- Decide on an hourly wage for yourself. Let's say $10 per hour for your creative work.
- If it takes you 6 minutes to make one favor, that's 1/10th of an hour. Your labor cost would be 1/10th of $10, which is $1.00 per favor.
- New Formula: (Cost of Materials + Cost of Labor) x 2 = New Sale Price
- How does this change your total project cost? Would you add a "Labor" line to your proposal or just build it into your price? These are the real decisions business owners make every day!