Entrepreneurship For Kids - Naomi Does Pricing

Naomi is learning how to price her lemonade. She is advised to calculate the cost of making a cup and charge slightly more to ensure a profit. Her family discusses the impact of customer willingness to pay and the importance of competitive pricing. Naomi decides to match a competitor's price. They calculate the cost using her recipe, ensuring a $0.50 profit per cup. A tip is given to offer discounts to boost sales. The video ends with a teaser for the next video about choosing a sales location.

What is Nathan's advice to Naomi regarding pricing her lemonade?

• Match the price of the most expensive competitor.

• Charge as much as possible.

• Calculate the cost and add a bit more.

• Offer it for free to attract customers.

What concern does Naomi's dad express about pricing?

• Competitors might lower their prices.

• Overpricing could lead to no sales.

• Customers might not pay enough.

• Underpricing will lead to losses.

Why does Naomi decide to charge $1 per cup?

• It's the cost of making the lemonade.

• It's the price her dad suggested.

• It's the price her competitor Myra charges.

• It's the price her mom suggested.

What is the suggested profit per cup of lemonade?

• $1.00

• $0.75

• $0.50

• $0.25

What strategy is suggested to increase sales temporarily?

• Increase the price.

• Offer a discount.

• Change the recipe.

• Sell in bulk.