Transcript Becca*s Bows

Becca’s Bows
By: Rebecca Macareno
Period 2
Becca’s Bows 
Commercial
 http://www.youtube.com/watch?v=Rx2xjzZ9oOY
Magazine Ad
Why bows?
 Perfect competition vs. Oligopoly
 Too much food competition
 Produced a differentiated product
 There wasn’t much bow competition
 Making bows is fun
 It wasn’t stressful making
 Easy to sell to my consumers (girls)
 I didn’t have to bug them to buy some
The Bow’s Purpose
 Make girl’s hair fun 
 In an inexpensive way
 Make them more confident about their hair
 Share the gift of bows
My Goal
 I wanted to make back at least half of
the money I spent on supplies
(ribbon, hair ties, etc.)
 I wanted to create a good credibility
 My costumers create hype
 My costumers become loyal
 I wanted to have fun in the process 
Demand Schedule?
 Pricing…
 Not a lot of people were producing bows so I was able to
create the price
 If there was more competition, I would change the price
The Cost
 1 ½ wide & 12 ft long
 Hot pink ribbon
 1 ½ wide & 9 feet long
 Light pink ribbon
 Pink thread
 Needle
 Hair bands
 Total cost: $4
The labor
 8 minutes to..
 Form the bow
 Prepare thread and needle
 Sow to the hair band
 Do finishing touches
Products Sold
Oligopoly
• Small number of
sellers
• Large amount of
market power
• Price maker
5%
20%
Food
Bows
75%
Other
Effect on the Profit
 Since I was able to create the price..
 My business was very cost-effective
 Cost to produce bow $.15
 Profit was $1.85 per bow
Selling Week 1
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$0.00
The Cost
The Profit
Selling Week 2
20
10
Selling
0
Cost Profit
Selling
Costumer Reviews
 95% costumer satisfaction
 1 mishap (a hair tie broke)
 Most would recommend the bows to a friend
 Most would buy bows again
Sole Proprietor
Advantages
Disadvantages
 One person in charge
(Me)
 Unlimited liability
 Easy to manage
 Did not have to share
profit with partners
 Responsible for all the
business’s losses
 I had to do all the labor
Why not another business
organization?
 Partnership “Bands and Bows”
 My partners did not put in work
 I created all my bows
 They did not create their headbands
 I wanted all the profit
 I decided to leave them
Success or Failure?
 Success..
 It cost $0.15 for each bow plus 8
minutes
 Profit of $1.85 per bow sold
 I did not have to share profit
 It was lots of fun
Real World?
 I would compete in a monopolistic competition..
 Hire more workers
 Increase the supply of needed material
 Make normal bows and specialize in holiday bows
Do you want a bow? 
 Catch me around school
 What type of bow?
 Color?
 Size?
 By when?
 Cost? $2