Pricing & Profit

Today’s Goal

Students will learn how pricing works in food businesses by understanding cost, pricing strategy, and profit using egg-based food examples.

• ●Every food item has a cost to make
• ●Price is set above cost to create profit
• ●Profit is the money left after expenses
• ●Businesses must balance affordability and income
• ●Pricing reflects value, time, and demand
• ●Poor pricing can destroy a business

“If you don’t know your numbers, you don’t know your business.” “Profit is not random — it is planned.” “Every plate you sell must make sense financially.”

“PRICE OR NOT PRICE GAME”

Instructions

The instructor calls out items:

• ●“Egg sandwich for $1” — students thumbs up or down
• ●“Gourmet egg bowl for $12” — react
• ●“Free food giveaway” — discuss the impact
• ●“Overpriced snack” — react

What It Teaches

• ●Price awareness
• ●Value judgment
• ●Business thinking instincts

“FOOD COST BREAKDOWN LAB”

Materials

• ●Sample egg dish (or visual)
• ●Cost cards (egg, bread, oil)
• ●Calculator or paper
• ●Price sheet

Demonstration Steps

Break down a simple item — an egg sandwich:

• ●Eggs = $1
• ●Bread = $1
• ●Oil and seasoning = $0.50
• ●Total cost = $2.50 Then show: selling price = $5, profit = $2.50.

Teacher Line

“Cost is what you spend. Profit is what you keep.”

“MAKE IT MAKE SENSE CHALLENGE”

Game Purpose

Teams design a food item AND determine its pricing strategy.

How It Works

Each team must:

• ●Create an egg-based food item
• ●Calculate the estimated cost
• ●Set the selling price
• ●Explain the profit reasoning
• ●Justify the customer value

Twist Cards (Instructor Adds Live)

• ●Ingredient price increases
• ●Customer wants a discount
• ●Competitor lowers price
• ●Must stay under $5 total price
• ●High demand situation

How to Win — Scoring

• ●Correct cost understanding (5 pts)
• ●Realistic pricing (5 pts)
• ●Profit clarity (5 pts)
• ●Business reasoning (5 pts) Highest “Profit Logic Score” wins.

• ●Cost cards
• ●Paper calculators
• ●Menu templates
• ●Marker boards
• ●Scenario cards

Low-cost option:

A fully paper-based math and roleplay activity.

“If you sold a food item, how would you decide its price?”

Emphasize

• ●Money is a system, not guesswork
• ●Every business must understand cost
• ●Profit is intentional Teach the phrase: “Know your numbers, know your power.”

Common Beginner Mistakes

• ●Guessing prices
• ●Ignoring ingredient cost
• ●Confusing revenue with profit
• ●Underpricing products

Home Mission

Pick a snack or meal at home and estimate the cost, guess the selling price, and compare the value. Bonus: Explain why it costs what it costs.

Ages 5–8

• ●Simple “cost vs sell” game
• ●Use tokens or pretend money

Ages 9–12

• ●Basic cost breakdown activity
• ●Group pricing decisions

Ages 13–18

• ●Break-even concept
• ●Scaling profit
• ●Real-world food pricing strategies
• ●Mini Challenge: design a “profitable $5 meal”