Lesson Plan : The Price is Right!

Teacher Name:
 Mrs. Halterman
Grade:
 Grade 3
Subject:
 Social Studies

Topic:
 Economics - Pricing Analysis
Content:
 Mini-Society Profit -The Price is Right Entrepreneur Target Market Research Competition Pricing Investigate Costs of Materials fees Paid for Labor Operating Expenses Projected Sales and Desired Profits
Goals:
 To guide students' thinking in determining the price of their products That students will gain an understanding of what a profit is and how to make a profit rather than loose money.
Objectives:
 After studying the concepts in this lesson, students will: 1. Explain the elements entrepreneurs consider when determining product or service pricing. 2. Explain and compute a break-even analysis for a given product or service.
Materials:
 Index cards Pan-balance scale Hand outs, "Help Sean price his custom comic cards"
Introduction:
 I have noticed that most of you have created some wonderful products to sell! But how many of you have determined your price? Setting the price can be a trick thing.
Development:
 Thinking about pricing your items can be thought of in terms of solving a puzzle. There are many different things to consider and you need to have a clear picture of how to proceed so that you will make money. Lets try to make sense out of the following puzzle. Show the students the acronym PROFIT (TRIFOP) and define the terms: Target Market - who you expect to by your product, the customers Research Competition Pricing - what other entrepreneurs are selling and at what price Investigate Costs of Materials - What it costs you to make your product fees Paid for Labor - Did you hire anyone to help make your product? Operating Expenses - Did you have to rent a place to produce your product? Projected Sales and Desired Profits - How many items do you think you can sell?
Practice:
 Show students the pan-balance scale and place, one pan labeled REVENUE and the other labeled OPERATING EXPENSES. Have students place weights such as coins or magnets in each pan to demonstrate their expenses and revenue. Using the "Help Sean price his custom comic cards" hand out, together determine his tentative price.
Accommodations:
 This activity may be adjusted according to the prior knowledge of the students. For instance, they might only need to consider their own cost of making the product rather than every aspect.
Checking For Understanding:
 What is your job today? Say the key words you want them to know and have them repeat them.
Closure:
 Setting a price is not always easy but it helps to understand that our goal is to make a profit!
Evaluation:
 Circulate around the room as students determine their price.

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