Imagine our class is opening a shop for one day. You have €50 to start with, six things to sell, and a whole class of hungry customers waiting at the door. Here is the big question: what would you put on the shelves, and what would you charge for each thing?
Remember, the €50 is what we PAY to buy the stock. The price we CHARGE the customer for each thing is a different price, and it is usually a bit higher. Have a think before any hands go up: would you stock lots of cheap things, or a few expensive ones?
We will build one class shop together on screen, adding each item we want to sell as its own line. The bar at the top tracks how much of our €50 float we have spent on stock — that is what the stock COST us, not what we will charge. Then we work out two more numbers beside the bar: the takings and the profit. Watch which of those two really tells us whether the shop did well.
Now we design one class shop together. You call out the six things you want to sell, and we put each one in as its own line. Watch the bar fill up: it shows how much of our €50 starting float we have spent buying the stock. If one line tips us over €50, we rebalance.
Once the stock is in, we work out two things together on the board beside the bar: how much we think the class will spend (the takings), and how much profit that leaves once the stock is paid for.
In your maths copy, sketch your shop's price list with the six items priced. Underneath the list, write three separate lines:
Keep each one on its own line so you can read your plan at a glance.
Today we work through several class shops, one at a time. For each one, check the stock allocation across the items stays under the ceiling shown with none left empty, leaving room for a profit. Then work out the takings and the profit on the board.
The last shop adds a stretch twist: put a 10% promotion on a slow-selling item and check whether total profit goes up. First change the price: find one-tenth, then subtract. Next compare profit before and after with real sales numbers on the board. Stock cost stays the same either way. The promotion wins when the extra sales more than cover the lower price.
What is the difference between takings and profit? If two shops both took in €33.60, could one have done well and the other badly? Which number tells you the shop was a success?
Next we plan a real class trip, weighing up time, money and distance to choose between two days out that both have to fit a budget.
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