Simmone’s Superb Lemonade Stand Report
ENG 260: Business and Professional Writing
Simmone Talford
Douglass Anderson
Tuesday September 29th, 2015
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Table of Contents
Abstract
Introduction
Effects of Weather
Inventory
Product Price
Conclusion
List of Graphs
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Abstract
Simmone’s Superb Lemonade Stand began in the month of September. This report will
analyze the decisions made in September to successfully run Simmone’s Superb Lemonade
Stand. A main point being discussed will fall along the lines of how the weather may have
affected the outcome each day. This report will also touch base on the idea that the more risk you
take the more varied your outcomes and data will be. Charts and graphs will be provided to show
the trends in the data after the decisions have been made.
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Introduction
As Simmone’s Superb Lemonade Stand continued to do business we found the concept;
Life will provide you with obstacles you cannot control, to be true. As the stand progressed our
workers gained the value of making the best out of every situation especially the ones you cannot
control and always push to make the best sales. The main sections within this report will discuss
the outcome from the effects of weather, the effects of the pricing decisions made, also how
often we stocked up our inventory and how we managed our inventory. As a whole the report
will discuss the idea that the more risk you take while running the stand the greater the variance
in the outcome and data.
Effects of Temperature and Forecast
Higher temperature and a good forecast results in a higher outcome
The best forecast any lemonade stand could receive would be clear and sunny. The
results are even better when you receive a nice temperature ranging between the mid-seventies to
the nineties. The next best forecast provided was a hazy forecast. And following that a cloudy
forecast was next on the list. During the month of September I had six days that were clear and
sunny, eight hazy days and five cloudy days.
Out of the six clear and sunny days during the month of September two days were in the
nineties, two days were in the seventies, one day was in the sixties, and one day was in the
fifties. On day two during the month of September, I was provided with a clear and sunny
forecast with a temperature of 93 degrees. The total number of potential customers was 98 and I
sold a total number of 65 cups. I sold the cups at 25 cents and received a profit of $8.38 cents.
On day twenty the temperature was again 93 degrees I sold 83 cups out of a potential 112 at 30
cents. On this day I made a profit $13.84. On day eight the temperature was 79 degrees. A total
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of 83 cups were sold out of a potential of 109 at a price of 30 cents. My profit for this day was
$13.36. Day 27 brought me a temperature of 73 degrees. I sold 50 cups out of a potential 97 at a
price point of 30 cents. My profit for the day was $7.41. Day seven presented me with a lower
temperature of 63 degrees. I sold the lemonade at a price of 20 cents and sold a total of 54 cups
with a potential of 116. Considering the temperature this outcome was pretty good and I received
a profit of $8.78. The lowest temperature during my clear and sunny days was 52 degrees on day
fifteen. I sold the cups at 15 cents and sold a total number of 25 cups out of a potential 97
customers. I suffered a loss in profit of $2.72 cents.
The temperatures for the days with a forecast of hazy were as followed: three days in the
nineties, four days in the eighties, and one day in the fifties. On day twelve the temperature was
95 degrees. I sold 83 out of a potential of 103 at 25 cents. I made a profit $11.44. On days 21 and
26 I had 91 degree weather. On day 21 I sold 83 cups out of a potential 91 at thirty cents. And
made a profit of $15.88. This day was my largest profit day. On day 26 I sold 71 cups out of a
total 101 at 35 cents. I made a profit of $10.52 this day. Days three, thirteen, seventeen and 24
brought me weather in the eighties. Day three the temperature was 87 degrees, I sold seventy
cups out 105 at 25 cents. My profit was $1.35. Day thirteen’s temperature was 81 degrees. I sold
71 out of a potential 93 cups at 25 cents and made a profit of $10.04. On day seventeen the
temperature was 83 degrees. Selling 62 out of a potential of 103 cups at 35 cents I made a profit
of $8.69. It was 82 degrees on day 24. I sold 7 cups out of a potential total of 115. I lost $7.28
because I took my biggest risk and jacked my price up to 50 cents causing no one to want to
purchase any of my lemonade. My lowest temperature with a hazy forecast was 51 degrees on
day 23. I sold 32 cups out of ninety at fifteen cents and lost 97 cents on the day.
During the days with a cloudy forecast the temperatures were as follows: day eleven the
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temperature was 92 degrees. I sold my lemonade at 40 cents, selling 60 cups out of a potential
100 customers. My profit on this day was $9.99. On days 22 and 28 my temperatures were both
in the seventies. Day 22 brought me a temperature of 73 degrees. I sold 50 cups out of a potential
97 at a price point of 30 cents. My profit was $7.41. The temperature on day 28 was 75 degrees.
At a price point of 30 cents I sold 44 cups out of a potential 112 customers, making a profit of
$3.65. The last two cloudy days I have to discuss were both in the sixties. Day ten was at a
temperature of 67 degrees. At a price point of 20 cents I sold 25 cups out of a total of 103,
making a profit of $4.20. Day fourteen had a temperature of 60 degrees. I sold each cup at 15
cents selling 15 cups out of 85 customers, losing $1.68.
Lower temperature and a poor forecast results in a poorer outcome:
The forecast that hindered some of the success of the lemonade stand was rainy and
overcast. A poor forecast can make or break the day whether or not the temperature was high or
low. The worst temperatures to receive would range from the fifties to the sixties. During the
month of September I dealt with six rainy days and five overcast days.
My temperatures for my rainy days were three days in the nineties, one day in the
seventies and two days in the sixties. Days four, nineteen and 25 were all had a temperature in
the nineties. Days four and nineteen were both 99 degrees. This temperature was my hottest
temperature but with the forecast strong results weren't promising. On day four I sold my cups at
30 cents, selling 71 cups out of a potential 91 customers. My profit was $8.98 and considering
the forecast this day was not too bad. On day nineteen I again sold my cups at a price point of 30
cents, selling a total of 66 cups out of a potential 105 customers. I made $9.09, more than day
four so again considering the weather this didn't hinder my success too much. On day 25 the
temperature was 91 degrees. Using a price point of 30 cents, selling to 62 out of a potential 91
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customers, I made a profit of $13.58. On day one the temperature was 71 degrees. I sold each
cup at 15 cents and sold to 15 customers out of a potential of 94. I lost $6.70. Because this was
the first day I had to purchase my entire inventory and because the weather was poor the chances
of having a good outcome was very slim. Days six and thirty were both in the sixties. The
temperature on day six was 67 degrees. I sold 25 cups out of a potential 99, only making a profit
of 98 cents. The temperature on day thirty was 65 degrees I dropped my price to 18 cents selling
19 cups out of 88, on this final day I lost $2.10.
During my forecast of overcast the temperatures were as followed: two days within the
eighty range and three days in the sixty range. Day nine had a temperature of 88 degrees. I sold
78 cups out of a total 112 at a price point of 30 cents, making a profit of $11.33. Day sixteen’s
temperature was 81 degrees. At a price point of 30 cents again I sold 71 cups out of a potential
total of 109 customers. My profit on this day was $11.44. On day five my temperature was 60
degrees. I lost a total of $2.37 by selling only 25 cups out of 103 at a price point of 15 cents. On
day 18 the temperature was 68 degrees. I sold each cup at a price point of 20 cents, selling 42
cups out of 109 potential customers, making a profit of $6.28. On day 29 i had a temperature of
62 degrees. Using the same price point of 20 cents I sold 24 cups out of 106 potential customers,
making a profit of $3.20.
Adjust price according to the weather:
When I was considering how much I was going to sell my lemonade for each day I really
based my price points off of the weather for the day. I did take some risks with this but mostly
found that the better the weather the more customers I sold to. I also made more because as my
weather got better I increased my price. Some days I could have made more if I didn’t take as
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much risk with price. The following section will discuss my decisions and outcomes with price
further.
Effects from Price Fluctuation
Reasonable price; significant amount of sales:
On the days my price ranged from 15 to 30 cents I earned a profit. Especially if the
temperature and forecast were nice. My warm days with a nice forecast allowed me to not lose
any money but on days that with a colder temperature, like on day 23 at 51 degrees I should have
made my price lower because I lost money. As stated in the section about my hazy days one day,
I had a perfect climate I lost money. I charged 50 cents per cup and received only 7 customers.
This caused a large variance in my data, also showing me that sometimes to large of a risk can
hinder your success. I found that 30 cents and lower was more beneficial to the success of my
lemonade stand. On one of my hotter days, the day being day 21, I earned the most profit
because my price was reasonable and my lemonade was superb. Besides the day I really cranked
up the price the only days I lost money was if my weather was poor. Going into the next month I
will take less risk with my prices.
Conclusion
My results showed that sometimes taking risks wasn't always the best thing to do in order
to maintain a successful lemonade stand. Fortunately I made more profitable decisions than nonprofitable decisions. The range in temperature and forecast also played a significant role in my
success especially because I was not able to control the weather. What I learned was that
sometimes you will not be able to have all the answers to each issue one may face. But during
the next month I may take less risk with the price and not make it as high as I did during this
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month. Seeing as my highest price caused a major variance in my data, I feel as though my next
go around will go a lot smoother now that I more thoroughly understand this cause.
Graphs and Charts
$ balance
$250.00
$200.00
$150.00
$100.00
$50.00
$-
$ balance
1 4 7 10 13 16 19 22 25 28
expenses
$20.00
$10.00
expenses
$1 3 5 7 9 11131517192123252729
income
$30.00
$20.00
income
$10.00
$1 4 7 10 13 16 19 22 25 28