Lemonade Stand Costs?

August 25th, 2023
kids
My kids were thinking of having a lemonade stand, and in the past I've said that if they're doing it as a fundraiser we'll cover the cost of ingredients, but if they're doing it for their own money then they need to reimburse us. But how much should that be?

The recipe they're using is approximately:

  • 2C lemon juice
  • 2C sugar
  • Water
  • Ice

Plus cups to serve it in. Makes about one gallon, or sixteen 8oz servings.

The water is basically free and the ice is below the rate that our icemaker replenishes: also effectively free. At our local grocery store 32oz of lemon juice is $3.50, sugar is $0.85/lb, and cups are ~$0.10/each. So each 8oz serving of juice is:

  • 1oz lemon juice: $0.11.
  • 1oz sugar: $0.05.
  • cup: $0.10
  • total: $0.26

If they sell until they run out of lemonade, call it a quarter a cup. They usually sell each up for a dollar, so that's a gross margin of 75%. Not bad!

Comment via: facebook, lesswrong, mastodon

Recent posts on blogs I like:

On The Prosperity Gospel

things I find fascinating: religion, scams

via Thing of Things February 19, 2024

Diseconomies of scale in fraud, spam, support, and moderation

If I ask myself a question like "I'd like to buy an SD card; who do I trust to sell me a real SD card and not some fake, Amazon or my local Best Buy?", of course the answer is that I trust my local Best Buy1 more than Amazon, which is notoriou…

via Posts on February 18, 2024

Raising children on the eve of AI

How do we prepare them for what we're not prepared for? The post Raising children on the eve of AI appeared first on Otherwise.

via Otherwise February 15, 2024

more     (via openring)