Module 5 Lesson 1 - CTP/RRP/profit & budget/pricing strategies.
Learning intention - Understand what CTP is.
Success criteria: I can determine my CTP.
ACARA - AC9HE9K05 AC9HE9S04
Learning activities
Recap - E story (news.com.au or other sources). Check for understanding about buyer persona. 5min
The entrepreneurs need to now figure out what their cost to produce is for their product/service. This is a vital step and one often done wrong. Watch ‘Cost to produce’ Founda video. Have the entrepreneurs define what cost to produce and recommended retail price is. They will figure out their RRP later. They should also gain an understanding of the term ‘bootstrapping’. 10mins
The entrepreneurs will need to research for each component of their product or service - www.aliexpress.com is a great starting point. Make them aware though of potential long shipping times, and they also need to think about whether where they buy from affects their mission and values. Reinforce Founda’s core value - eco friendly and sustainability and how that needs to be upheld. A budget of $50 is recommended (bootstrapping all the way). They will then need to figure out the CTP of one unit after sourcing all the required components for their product/service. Stress to them to make sure they include their time in the costings - a common mistake made with many new entrepreneurs leaving it out - the ‘true cost’ of an item. Labelling and packaging will need to be included as well. Don’t worry about shipping yet. 45mins
H/W - talk to parents about definitely starting to purchase items for business.
Join Founda's community for the following resources: helpful websites, Founda video.
Lesson 2 - CTP/RRP/profit & budget/pricing strategies.
Learning intention - Understand what CTP is.
Success criteria: I can determine my CTP.
ACARA - AC9HE9K05 AC9HE9S04
Learning activities
Continue figuring out CTP. Reiterate ‘bootstrapping’ ethos - have the entrepreneurs found the best price possible for each component to make sure their CTP is as low as possible? Have they met the eco-friendly and sustainable core value with their components? This is a lengthy process and one that needs to be addressed correctly. Great opportunity for some cross-curricular work to happen - invite a maths teacher in to help! 50mins
Lesson 3 - CTP/RRP/profit & budget/pricing strategies.
Learning intention - Understand what my profit is.
Success criteria: I can propose my RRP and identify my pricing strategy.
ACARA - AC9HE9K05 AC9HE9S04
Learning activities
Recap - E story (news.com.au or other sources). Check for understanding about CTP. 5min
The young entrepreneurs need to be aware of the fact that financial mismanagement is a top contributing factor to small business failure. By having a budget template set up from the get go, they are one step closer to success. The entrepreneurs will need to finalise their CTP if they haven’t already, and be able to clearly articulate how much it costs to produce one unit/deliver the service. They now need to begin their budget and start tracking what’s been bought and how much has been spent. Use the budget template. 20mins
Many entrepreneurs have goals to be stocked in local stores - so a wholesale price will need to be calculated. There are many, many ways and formulas to figure out wholesale cost - research the internet for examples. Need to define profit margin and profit. The following link is helpful with online calculators -
Entrepreneurs need to go back to their market research and look at their main competitors and do some reverse maths on the RRPs; this will aid in determining whether their wholesale price is in line with industry. 30mins
Join Founda's community for the following resources - helpful websites, budget template.
Lesson 4 - CTP/RRP/profit & budget/pricing strategies.
Learning intention - Understand what my profit is.
Success criteria: I can determine my RRP and identify my pricing strategy.
ACARA - AC9HE9K05 AC9HE9S04
Learning activities
Recap - E story (news.com.au or other sources). Check for understanding about wholesale price and profit. 5min
The entrepreneurs must now identify what their profit is on one unit/service, and now set a RRP. Again, the market research done previously is vital here. Before they settle on a price, an understanding of pricing strategies and the psychology behind it needs to be addressed. Watch ‘Pricing startegies’ Founda video. The following resources are also of use and need to be addressed by reading through and taking notes-
https://neilpatel.com/blog/5-psychological-studies/
https://business.gov.au/products-and-services/develop-a-pricing-strategy
The businesses now need to set a RRP and identify what pricing strategy/psychology they will use when selling. 40mins
Go around the businesses and announce RRPs - get feedback/reactions from everyone. 10mins
H/W - Get family/friends feedback on price point.
Join Founda's community for the following resources - helpful websites, Founda video.
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