Note that this also assumes free (or even negative-cost, if you think the life lessons are positive-value, which I do) labor and free rent for commercial space.
But it’s still a GREAT example of why you need to look at both absolute and relative measures when making decisions.
I don’t mind mixing up the lemonade with them; that’s a fun project to do together. Or do you mean that this doesn’t count their labor, and so I shouldn’t say “gross margin”?
free rent for commercial space
They sell the lemonade outside, along the bike path, so no specific space. Preparation is in our kitchen, which would be an issue if other people wanted to use it at the same time, but ideal lemonade making time doesn’t conflict with meal prepping time, so also not an issue.
I enjoy these reports/thoughts, and don’t mean to say you should do anything differently. I was merely riffing on the financial analysis, which left out the largest cost drivers for many low-cost food establishments (rent and labor).
And by doing so, pointing out that the monetary aspect is close to irrelevant—the activity itself is the value.
Note that this also assumes free (or even negative-cost, if you think the life lessons are positive-value, which I do) labor and free rent for commercial space.
But it’s still a GREAT example of why you need to look at both absolute and relative measures when making decisions.
I don’t mind mixing up the lemonade with them; that’s a fun project to do together. Or do you mean that this doesn’t count their labor, and so I shouldn’t say “gross margin”?
They sell the lemonade outside, along the bike path, so no specific space. Preparation is in our kitchen, which would be an issue if other people wanted to use it at the same time, but ideal lemonade making time doesn’t conflict with meal prepping time, so also not an issue.
I enjoy these reports/thoughts, and don’t mean to say you should do anything differently. I was merely riffing on the financial analysis, which left out the largest cost drivers for many low-cost food establishments (rent and labor).
And by doing so, pointing out that the monetary aspect is close to irrelevant—the activity itself is the value.