August 3, 2005
Fruit of their labor studies
Young lemonade sellers create stand outside Goodwill
By Carol South
Herald contributing writer
Simple drink, complex lessons.
Six area middle school age youth spent their summer as entrepreneurs thanks to the Goodwill Industries Academy of Entrepreneurial Studies. For three hours a day, three afternoons a week, they have been selling fresh-squeezed lemonade in front of Goodwill's retail store - absorbing lessons on marketing, operations, finance and human resources as they go. They have calculated net profits, taxes, cost of goods sold and the incremental payments needed to repay their start-up loan for initial supplies and a juicer (purchased at Goodwill.)
"It's fun, you get to learn new stuff and you meet new people," said Randy Lederer, 14.
The eight-week program started off with two weeks of classroom time plus choosing a product, purchasing equipment and supplies and making signs. They also had a crucial decision to make early on: fresh or concentrate.
"We did market research," added Randy of their taste testing that resulted in the more labor intensive but better tasting fresh-squeezed lemonade.
Arriving at 10 a.m. three days a week, the students check the inventory of lemons, sugar and ice before making their day's supply.
"We do two cups of lemon juice, eight cups of water and one and a half cups of sugar," noted Nick Durga of their winning recipe.
Students rotate among the management jobs and also the one-hour shifts of selling during the afternoons they have a stand.
"It's fun to move around, I've done different jobs, marketing, human resources and finance," Lederer said.
While selling, aided by the hot summer, students politely offer lemonade to each customer. Takers are eagerly served and those who declined are thanked anyway as a matter of principal. One episode of trusting a man who could not pay one day resulted in his bringing a $10 tip the next to thank them.
"It's been fun, the kids love getting out there and selling," said Jim Burke, entrepreneurship teacher for the academy. "It's really been neat, they said they'd probably be home playing video games otherwise."
Burke said his role is primarily as a consultant - early on he told the kids they were in charge and the responsibilities were on their shoulders. He combined portions of an enterpreneurship curriculum he uses in a six-month program for teens with lessons from the book "Seven Habits of Highly Effective People." After setting up a rudimentary structure for the students, Burke let them go at it.
"They really got to decide what to sell, where the stand was going to be, how they are going to ask," he noted. "We've really let them take charge, try to make decisions as a group as long as they agree to it as a group."
Along the way, students have learned what doesn't work as well. They tried lemon cookies along with the lemonade but did not see much demand. They are still considering whether to sell other snacks or not and one student wants to offer limeade. Offers of phone orders and delivery to employees at Goodwill Industries has been a big success.
The biggest challenge so far has been learning to get along and work together effectively.
"You can't argue in front of customers," noted Derek Lederer, 13.
Students in the Academy of Entrepreneurial Studies will be selling lemonade Tuesday, Wednesday and Thursday afternoons from 12:30 to 3:30 p.m. through August 11. Their stand is situated in front of Goodwill's retail store at 2279 South Airport Road.