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Lemonade stand

By David, 20 January 2016 Activity

Hat, sunscreen, pens, cardboard, change, lemonade.

You will need these items

Note: Laws about selling food and drink vary from place to place. Get an adult to contact the local council and check where and how you are allowed to run a lemonade stand before you do this activity. This activity may not be permitted in your region. If not, you could try doing this with your own family with “play” money.

You will need

  • A lemonade recipe and ingredients
    Lemonade 50c

    Make a sign that people can see.

  • An outdoor table
  • Chairs
  • Plastic cups
  • A big piece of cardboard to write a sign on
  • Pens and pencils to write on the sign
  • A container to put money in
  • Lots of coins so you can give people change
  • An esky and some ice, to keep your lemonade cool (optional)

What to do

A lemonade stand with lemonade and a sign.

Set up your stand somewhere, and sell some lemonade!

  1. Work out where you could put your lemonade stand. It is a good idea to set it up where you know a lot of people. A good example might be at a school sports match, or after church. Make sure you get permission from your parent or teacher before you start.
  2. Once you’ve organised a place and a time, you’ll need to work out a price for your lemonade. You want to make money, so try to estimate how much money you’d make:
    • if the price was 10c a cup
    • if the price was $1 a cup
    • if the price was $10 a cup
  3. Make a sign for your lemonade stand. Remember the sign has to say:
    • what you’re selling and
    • how much it costs
  4. Make some lemonade.
  5. On the day, get an adult to help you set up a table and some chairs. Hang up your sign and sell some lemonade. Since you’ll be outside, remember to wear a hat and sunscreen! Make sure that you follow all health guidelines from your local council.
  6. At the end of the day, count up how much money you have, and subtract the money you started with. Did you make as much as you thought you would? How could you have made more?

What’s happening?

When you make a lemonade stand, you are actually running a business. A business is an organisation that sells things. These things can be goods (like lemonade) or services (like helping someone with their homework). The aim of most businesses is to do something worthwhile and to make money.

One of the most important parts of selling something is to make sure the price is right – if it’s too high then no-one will buy, if it’s too low, you won’t make much money. If you set your price really low, you might spend more money on the ingredients for the lemonade than you make when you sell it!

Price isn’t the only important thing – it is important for people to know about your store. If you put up signs pointing people to your stand, then you might get more customers. Having a good product is very important too. If your lemonade is good, people might buy more than one cup, or they might tell their friends to come and buy your lemonade.

Applications

All of these rules are very important for every kind of company. When a shop is working out prices for their stock, they will try to guess how popular it is going to be. If no-one is buying that item, then they may make it cheaper so more people will buy it. If the shop starts running out of stock, they might increase the price. Some products come in limited numbers, like tickets to concerts or sports games. If all the tickets sell out, some people might be willing to pay much more than the normal price to get a ticket.

There are many different types of mathematician that study buying and selling things. Accountants work out how much money you are making and how much you are spending. Marketing analysts can work out how much advertising you should do, or if you should spend money to make your products better. Economists look at lots of different companies all buying and selling things, and use this information to predict the economy. An economist can tell you when it is a good time to start a new business.

Further information

Lemonade stand tips
An online lemonade stand game

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2 comments

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