Week 7 Response

Question:

You are a pizza shop owner and have determined that is costs you $6.00 to make a 12 slice pizza.  Discuss the price you would charge for a slice and why.  Be sure to consider other factors as well as cost.

Answer: 

What's up with all these pizza related questions? "What would the mission statement of your pizza store be? What would you call your pizza store? How much would you charge per slice?" Does anyone else here think the teacher recently opened their own pizza store, and is now farming her class for ideas on how to run it? If the final exam is something like "the last thing you need to do to finish the class is buy a large pizza at Mimi's Pizzeria and then tell all your friends how great it was" I will be 0.00% surprised. 

 

Also, getting ideas from the class is a terrible business strategy. There are some really, really bad ideas out there. Case and point:

I would charge $4.00 a slice because I'm looking to make an obscene profit per pizza. I wouldn't have any overhead costs because I would be making and selling the pizza out of a renovated ice cream truck that I would drive around on campus. I could get away with charging that much per slice because I'm the only pizza truck in the area. It would look like this:

Anyone steals my idea, be it teacher or student, and you'll be hearing from my lawyers.

back by popular demand, here's that other student's response:

I would charge 1.00 because selling in bulk is always cheaper because you will you will reach some profit. When you make a whole pizza it is a definate fact that you will sell the whole pizza. Selling the pizza slice by slice is never a definate process. With selling the slices for a dollar you would only need to sell 6 slices in order to make your money back and would allow for a 6 slice waste margin to cover any dropped slices as well as pizza that was never sold and got old or slices unsold at the end of the workday.  The bonus to selling a dollar a slice is there would be a profit of .50 cents a slice or 6 dollars a pizza which is a smart buisness move people are willing to pay for convience!!