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http://www.jumpinjuiceandjava.com/start.htm
*Latest health craze
*Packed with fresh fruit
*Nutritious, filling, and energizing!
*Great choice for a breakfast on the go
*Refreshing mid-afternoon snack
http://www.jambajuice.com/
*1990- opened the 1st restaurant in San Luis Obispo
(called Juice Club)
*Founders included: Kirk Perron, Linda Ozawa Olds,
Kevin Peters, and Joe Vergara
*1993- opened its 2nd and 3rd restaurants in
Northern and Southern CA
*1995- changed name to Jamba Juice
*Now has hundreds of restaurants across the
country (nearest is in Madison)
*Make healthy living delicious, nutritious, and fun!
*Goal is to celebrate the flavors of life by providing choices its
customers can feel good about
*Creates nutritious concoctions of fresh-squeezed juices
*Smoothies are always made to order
*Offers vitamin and energy-enhanced boosts
*Wholesomely nutritious:
-low in fat
-high in fiber
-100% natural (no sugar additives)
*44 students at Ashwaubenon High School
*Attempted to get a fairly representative sample:
- 1 small English class of all seniors
- 2 math classes of freshmen and sophomores
*Questions asked on survey
- most popular time = lunch
*Data Problems - not a well-known company
- may have affected demand
- some chose a price not
presented (data discarded)
Qd
0
25
50
175
350
600
800
1,000
1,050
1,075
Price
$4.50
$4.00
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
Qs
1,200
1,100
1,000
800
600
400
200
80
20
0
Price
$4.50
$4.00
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
*Qd = Qs
~theoretically there should be no surplus
and no shortage
~consumer-friendly price
*Land - Set up a table in the commons and sell between 1st and 2nd
hour as well as lunch
- Raw materials needed in production include fresh fruit
(warm climate)
*Labor - Workers will be responsible student volunteers
- All helpers rewarded with a 20% discount on smoothies
*Capital - Advisor will provide start-up financial capital and the loan
will be repaid with profits later
- Equipment like blenders are needed in
the actual production but not on the
school’s end as far as distributing
- Must pay for advertising around school
*Entrepreneurs - the advisor of the AHS group is the risk-taker
*Price product is sold at = $2.25
*Buy in bulk from
supplier (32 oz.)
= $4.30
*Total revenue
= Qd x Price
= 500 (2.25)
= $1,125
*Total cost of goods
= Qs x Price
= 250 (4.30)
= $1,075
*Total revenue - total cost = $1,125 - $1,075
PROFIT = $50
*The profits made are in the end are not high enough to
make the efforts worth it
*Demand for smoothies exists but not at a high enough
price to exceed the cost of the goods sold from this particular
company
-not a significant enough profit made through Jamba Juice