Total Cost of Materials: Copyright 2016 Connecticut Invention Convention.

Transcription

1 Worksheet 1: Cost Inventors have to do more than just come up with amazing ideas. They then need to take those ideas and create them using available money, items, and time. Now that you have created a product that solves a problem, you need to figure out how much it will cost to make that product. 1. Write a short description of the problem you are solving: 2. Write a short description of your proposed solution: 3. Now you need to make a list of your materials! Material Material Cost Total Cost of Materials:

2 4. Labor Cost Estimate the number of hours it might take to make 1 unit of your product hour(s) Your labor charge for 1 hour of work $ /hour Total Labor Cost Labor hours x labor charge per hour 5. Total Cost of making your product: + = (Cost of Materials) (Labor Cost) (Total Cost)

3 Worksheet 2: Advertising You know much it will cost to make your product, now how much will it cost to advertise your product to the public? Below are the advertising methods you can choose from Newspaper Ad Flyers Magazine Radio Television Internet $50/week $100 for a Sunday paper ad 15 cents per color sheet $1500 for a full page color ad $20 for a 60 second spot on local station $150 for a 60 second spot on a major station $25 for a 30 second local television station commercial $400 for a 30 second major network commercial $100 for a banner ad which includes 50,000 impressions (people seeing your ad) Below is a sample of advertising choices and costs for one month. Advertising Choices Cost for 1 Month Full Page Magazine Ad $ Flyers 1000 x.15 = $150 4 Sunday Paper Ads 4 x $100 = $400 Total Advertising Cost $2150

4 Use the table below to outline your advertising plan and costs. You must use at least three different advertising methods. The goal is to reach as many people as possible! Show your work: Method 1. Advertising Costs for One Month Cost Add Rows 1, 2, and 3: Total Cost for Advertising for one month:

5 Worksheet #3: Percent Profit Sample: You have decided to try and sell your product. Including labor, (not including advertising cost) it costs $25.00 to make one unit of your product. You have decided to sell each unit for $ This is how you find your percent of profit: $40 - $25 = $15 (Sale price Price to produce = Revenue) $15 $25 = 0.6 (Revenue Price to produce) 0.6 x 100 = 60% You will make 60% profits on your product. Assume you will be selling your invention. Determine your percent of profit by answering the questions below. 1. What is the cost of making your product? Only look at labor costs from Worksheet #1 2. How much will you sell your product for? (Be realistic) 3. To find percent of profit use the following steps: a. Subtract your cost from sale price: = (sale price) (cost) (revenue) b. Divide the answer of a by your cost: = (revenue) (cost) (answer of b) c. Write part b as a percent (round answer to nearest whole number). This is your percent of profit. X 100 = % (answer of b) multiplied by 100 percent

6 4. Your percent profit should ideally be between 3% and 10%. Are you happy with your percent profit? Why or why not? 5. If you think your percent of profit is too small or too large, try raising or lowering the price of your product and calculate the new percent. (Use as many tables as needed) New price of product: a. Subtract your cost from sale price: = (sale price) (cost) (revenue) b. Divide the answer of a by your cost: = (revenue) (cost) (answer of b) c. Write part b as a percent (round to nearest whole number). This is your percent of profit. X 100 = % (answer of b) multiplied by 100 percent New price of product: a. Subtract your cost from sale price: = (sale price) (cost) (revenue) b. Divide the answer of a by your cost: c. Write part b as a percent (round to nearest whole number). This is your percent of profit. = (revenue) (cost) (answer of b) X 100 = % (answer of b) multiplied by 100 percent

7 Advertisement Flyer You will need to create an advertisement in order to get people interested in your product. Your flyer should be created on an 8.5 by 11 piece of paper and must include all of the following: a. Product picture (Can be hand-drawn or created on the computer). b. Sales Pitch or Slogan describing why your product is the best. (Ex: Milk bone Dog Biscuits They keep your dog s teeth strong and healthy!) c. Place where customers can buy your product. d. Encouragement for customers to buy your product such as a coupon or discount. Be creative! For extra credit you may choose to create a business card including your name, your title, the name of your business, a phone number and an address. (The phone number and address can be made up.)

8 Product Description/Competitors Guide Before you begin researching competitors in your market, create a name for your product. Name of product: Now that you ve determined how you will make a profit from your product, you will now find your competitors and see how your product compares to theirs. Write a paragraph with the following information: describe at least one other similar product on the market, who is selling that product, who their target customer is, and how much the product costs. You may write the paragraph here or on a separate piece of paper.