thank you!!

The Scenario: Your cousin Caleb has a dog-walking business, and you'd like to start one in your own neighborhood. Caleb has had his business for more than a year and has experimented with different prices for his services. He is willing to share what he has learned with you as you begin to plan your business.

The Project: Use the information provided in the Performance Task to learn more about your competition and the costs of your business. See what you can discover by looking at Caleb's sales records to help you decide how to set up and price your own dog-walking services.

Use the questions below to help you gather information and get your new business off to a profitable start.

1. Explore the three competitors in your area to learn more about the services they offer and how they reach their customers. Fill in the table below to help you compare their businesses.

2. Now that you know a bit about the competition, it's time to get more specific about your business offering. List three services you would like to offer.

Do any of these services require you to buy special items? If so, what would you need to buy?

Describe the type of customer you believe your business will appeal to and explain why.

If you had to guess now, how much do you think you should charge for a 30-minute dog walk?

3. Use the table below to summarize your monthly business costs. Record each option you choose in the "Options selected" column.

(9 points: 1 point for each completed table cell)

Cost typeTotal cost per monthOptions selected
Advertising
Goods
Transportation
Licensing
TOTAL

4. Explain the choices you made that determined your business costs in each cost category.

(4 points: 1 point for each explanation)

In your explanation, be sure to describe:

❑ Your advertising choices
❑ The goods you will purchase
❑ Your transportation needs
❑ Whether you chose bonding
❑ The reasons for your choices

Advertising:

Goods:
Transportation:
Bonding:

5. Based on the sales data Caleb sent you, answer the questions below to find the relationship between the change in customers per month and a $1 change in price.

Price (per 30 min)Customers per monthRevenue per month
$12214$5136
$14202$5656
$18178$6408
$22154$6776
$28118$6608
$3482$5576

(14 points: 1 point per blank or circled word)

Using Caleb's data, give an example of a price increase and an example of a price decrease. Include the change in the number of customers with each example.
Price Increases
• If Caleb increased his price from to , the price increased by and the number of customers (increased/decreased) by .
Price Decreases
• If Caleb decreased his price from to , the price decreased by and the number of customers (increased/decreased) by .
• With every price increase of $1, Caleb (gained/lost) customers.

• With every price decrease of $1, Caleb (gained/lost) customers.