Instructions
Follow these steps to complete the Bracelet Business Challenge:
- Read the Business Scenario to understand the goal.
- Complete Section 1: Supply Costs using the table provided.
- Calculate your potential earnings in Section 2: Sales and Revenue.
- Work through the Profit Analysis in Section 3.
- Use your creativity in Section 4: Marketing Strategy.
- Try the Bonus Challenge if you finish early!
Business Scenario
You are starting a small business called "Park Perks Jewelry." You plan to set up a table at the local community park this Saturday. To succeed, you need to track your spending, set your prices, and figure out how many bracelets you need to sell to make a profit.
Section 1: Supply Costs
To make bracelets, you need supplies. Use the table below to calculate the total cost of your inventory.
| Item | Quantity | Price per Item | Total Cost for Item |
|---|---|---|---|
| Example: Rainbow Bead Pack | 2 | $4.50 | $9.00 |
| Elastic String (Roll) | 1 | $3.25 | |
| Letter Beads (Box) | 2 | $5.50 | |
| Charms (Pack of 10) | 3 | $2.00 | |
| Gift Bags (Small) | 1 | $4.75 | |
| Display Stand | 1 | $6.00 | |
| TOTAL STARTUP COST | $ |
Section 2: Revenue (Money Coming In)
You decide to sell three different types of bracelets. Calculate how much money you will make if you sell out of all of them.
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Basic Beads: You have 10 bracelets. You sell them for $3.00 each. Total for Basic: $__
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Custom Name Bracelets: You have 8 bracelets. You sell them for $5.50 each. Total for Custom: $__
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Deluxe Charm Bracelets: You have 5 bracelets. You sell them for $8.00 each. Total for Deluxe: $__
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Total Potential Revenue: (Add the three totals above together) Total Revenue: $__
Section 3: Profit Analysis
Profit is the money you keep after you pay back what you spent on supplies. Use this formula: Total Revenue - Total Startup Cost = Profit
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Use your numbers from Section 1 and Section 2 to calculate your profit: $__ (Revenue) - $__ (Startup Cost) = $__ (Total Profit)
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If you only sold half of your bracelets, would you still make a profit? Why or why not?
Section 4: Marketing Strategy
People walking in the park need to be noticed! Create a plan to attract customers.
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The Hook: Write a catchy slogan for your business (Example: "Brighten your wrist with a Park Perk twist!")
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The Sale: You want to offer a "Bundle Deal." If a customer buys two Basic Bracelets ($3.00 each), what price could you offer to make it a deal?
Bundle Price: $__ for two.
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Visuals: Describe what your sign will look like. What colors and words will you use to grab attention?
Section 5: Bonus Challenge
A local shop owner sees your stand and wants to buy 25 Custom Name Bracelets to sell in their store next month.
- They offer to pay you $4.00 per bracelet because they are buying so many.
- It costs you $1.50 in materials to make one Custom Name Bracelet.
Calculate: How much profit would you make from this one big order? (Hint: Find the profit for one bracelet first, then multiply by 25).
$____
Answer Key
Section 1: Supply Costs
- Elastic String: $3.25
- Letter Beads: $11.00
- Charms: $6.00
- Gift Bags: $4.75
- Display Stand: $6.00
- Total Startup Cost: $31.00
Section 2: Revenue
- Basic: $30.00
- Custom: $44.00
- Deluxe: $40.00
- Total Potential Revenue: $114.00
Section 3: Profit Analysis
- $114.00 - $31.00 = $83.00 Profit
- Half revenue is $57.00. Since $57.00 is greater than the $31.00 startup cost, the answer is Yes, you would still make a profit ($26.00).
Section 4: Marketing Strategy
- Bundle Price: Any price between $3.01 and $5.99 is a valid "deal" (e.g., 2 for $5.00).
Section 5: Bonus Challenge
- Profit per bracelet: $4.00 - $1.50 = $2.50
- Total Profit: $2.50 x 25 = $62.50