Creating an Order & Pricing List

by Laurel Brock

 

Introduction

This is a single lesson plan that focuses on the scenario of ordering and pricing inventory from a high school "class of" promotional company catalog. Students work on group activities and reflect individually. The lesson goal is to examine the details in ordering products and recognize how those particulars affect product pricing decisions. Competition is optional.

Related Instructional Objectives

Activities in this Lesson

Make a Jacket Hooks / Set

If all students have computers, ask students to open up their computers and go to thejacketshop.com and "Make a Jacket". Give them 5-10 minutes to play with the program and design something for fun.

If there is only the instructor's computer, create a jacket on the classroom screen to gain the students' attention.

Resources and Materials

Make-A-Jacket webpage

This is a website that offers an interactive jacket designing applet.

Group Discussion Other

Describe the following scenario to the students: Students want to purchase and sell logo wear at the homecoming basketball game.

Hold a discussion with the class about the target market for the event. Ask them to answer, Who, What, When, Where, and Why concerning the clothes they want to sell.

Photocopy and distribute the Basis for Segmentation to each student as supporting material for the discussion. As the instructor you can also get ideas for Retail Market Strategies in other categories of CTEOnline.

Hold a discussion with the class about ordering products and what factors need to be recognized. Discuss the following topics:

Resources and Materials

Basis for Segmentation (Identifying Target Audience)

This list can be helpful in identifying the target market for any small business.

Catalog Shopping Group Work

Preparation: Get catalogs for students to go through and choose school spirit wear. You can order them online from companies that sell spirit items and apparel. If you have a store at your school, the staff person who takes care of it probably gets them in their mail continually.

Put students in groups of three. Ask the students to work together for the 5 minutes to determine their target audience. Ask them to fill out each category of the handout from the discussion regarding their intended audience.

Give each group a catalog (try to get catalogs on different things so that the students don't double up on products that are the same). Ask each group to pick out three items they think their target market would buy. Give the students 20 minutes to go through the catalog and choose their selection.

Resources and Materials

Basis for Segmentation (Identifying Target Audience)

This handout will supplement this activity. This is the same handout that was distributed in the prior discussion activity.

Cost Analysis Group Work

Students will need to create a "cost analysis" form. This form should provide the following information:

See the attached example form. This can be created in Excel using calculation tools for accuracy.

Resources and Materials

Cost Analysis Form

This is a blank cost analysis form that can supplement this activity.

Check for Understanding Check Understanding

Once the students have calculated their order totals, each group will meet with the instructor. The group will give their "cost analysis" sheet to the instructor. The instructor will be able to check for understanding and evaluate whether they can proceed to the next activity. Instructors should evaluate whether the products chosen are adequate for the target market, whether the fees, charges, and shipping are accurately calculated, and whether the unit pricing is reasonable based on the total order cost and the target market chosen. (in other words - divide the total order price by the number of items being ordered and see whether the price per item seems reasonable or too high? This will depend on the target market identified. Reviewing their responses on the Basis for Segmentation handout in the "Buying Behaviors" section will assist you in this evaluation. Students will keep their "cost analysis" sheet for use in the next activity.

If the order was not done correctly or the items chosen do not meet the pricing needs for their market, send the group back to improve their order for accuracy and practicality. If needed, you may want to assist the group of students in picking out items in their catalog that meet the target market's needs.

Group Discussion Other

When the majority (if not all) of the groups are completed with picking out their order, hold a discussion with the group about item pricing. Watch the video on pricing that is attached. Be sure to go over the following concepts:

Resources and Materials

Markup Video

This video will supplement this discussion and the next activity regarding pricing markups. It is about 5 minutes in length.

Pricing Video

This video will supplement this discussion regarding audience perception. It is about 5 minutes in length.

Pricing Analysis Group Work

Put students back in their same groups and ask them to create a "pricing analysis" sheet. (Students should use the "cost analysis" sheet to assist them). This form should include the following for each of the three items they ordered:

Students are then asked to create a pricing sheet on the computer and print it out to turn in to the instructor once complete. Only one pricing sheet will be turned in for each group. The pricing sheet should be created in Microsoft Publisher using a template to avoid any difficulty getting it created. You may need to guide students not familiar with the program.

Resources and Materials

Price Analysis Form

This is a blank Price Analysis Form that can be used to supplement this activity.

Check for Understanding Check Understanding

Students will turn in their Price Lists and "pricing analysis" sheets in to the instructor's basket. The instructor will be able to evaluate whether the prices that have been indicated are reasonable based on their reasoning for choosing the price and their break even cost.

Self-Reflection Formative Assessment

Each student, individually, should answer the following questions on a separate piece of paper to complete the assignment accurately.

  1. What did you learn about ordering products and pricing them?
  2. Did you find that you were surprised at the total cost of the order?
  3. Did you find it difficult to price each item at a price that you thought was reasonable based on all the additional costs?
  4. When looking for items to sell in the future, what factors will come into mind before choosing a company to work with?

Closing Closure

This activity can be used for students that want to fund raiser for their school club or sports team. Students can promote the product to their fellow classmates and their families, get pre-paid orders, order the product, and then distribute once production and shipping is complete. This way the student groups do not have to initially pay for products which may result in excess product and profit loss.

Assessment

Assessment Type(s): Writing Samples, Demonstrations, Observations

 

Assessment will be performed throughout the lesson as the instructor checks for understanding during the group activities.  The cost- and price- analysis sheets will provide accurate feedback during teamwork.  The self-reflection will expose the student's individual understanding of the academic content.