Discussion: Pricing, Inventory, and the Impact of External Factors
Congratulations! You are now the proud owner of a coffee stand. As owner of this retail establishment, you must decide on the kinds of merchandise you will need to purchase, how much inventory you will need, what recipe you will use to meet the needs and tastes of your customers, and what price point will be most appropriate. You will also need to consider location, weather, and other external factors in your business decisions.
The goal of this retail experience is to see how much money you can make in two weeks of business—this is a virtual two weeks and will only take a few moments for each “day.” You will need to complete your full two weeks of business in one sitting, so be sure to allocate enough time to complete this exercise.
To begin, access the Coffee Shop Game. Once there, you will be given instructions on how to purchase your inventory, how to develop your coffee recipe, how to set prices, and how to make changes when needed.
At the end of your virtual two weeks, make note of how much money you made, how much inventory you had left, and what your customers had to say about your product.
Then go to the discussion topic and answer the following questions:
1..How much money did you make? (We are all on the honor system here, so please be truthful.)
2..How did you incorporate changes in the weather into your pricing and recipe decisions?
3..What impact did customer comments have on your pricing and recipe decisions?
4..Did you find this exercise to be easier or harder than you thought before you began?
5..Do you have any other general comments about this exercise?
Comments from Customer
Discipline: princiiples of retailing