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There’s a reason things cost what they do — sneakers, pizza, you name it. Businesses put a lot of thought into how much they charge, because they have to consider the cost of ingredients and materials, wages for their staff and lots of other behind-the-scenes things. But you might put just as much thought into what you’re willing to pay — so in a way, you get the final word on whether the prices are right. This week on the show, we’ll talk about how we value the things we buy. Plus, two Dollar Scholars talk to each other about their saving and spending habits, and we’ll hear pastry chef Duff Goldman’s idea for a pizza rover.
Take a minute to recap the episode and review the key points. Here are some questions to get the kids going:
To understand why pizza costs what it costs, Jed called up cheesemonger Tiffaney Morse, who explained that the prices she sets can change depending on seasonal or other adjustments in her costs — just like they do for Ann Kim at her restaurants. The same is true for the dairies that supply milk to the cheese factories and the ranches that send cows to the dairies. That whole series of interconnected businesses is called a supply chain, and it’s key to understanding why things cost what they do.
Business owners are pretty much always paying attention to what’s going on in their supply chains. Because if they can keep costs under control, they have more wiggle room in setting prices — and more opportunity to turn a profit. Some companies get pretty creative with their supply chains. One of the apparel industry’s most closely studied supply chains is that of clothing retailer Inditex, which owns Zara stores. For grown-ups: Here’s a look at that company.
One last pizza question to chew on: Would you rather eat OK pizza any time you wanted or only eat pizza once a year, but it’s always the most amazing pizza you’ve ever had?
Finally, we’re looking for some great ideas from kids to feature on an upcoming episode of “Million Bazillion.” So tell us: What business do you wish existed or do you wish you could start? Send us your answers here.
And if you or your kids have questions for us, we’d love to hear them! Click here to get in touch.
“Million Bazillion” is Marketplace’s first podcast just for kids that answers the awkward, and sometimes surprising questions that they have about money through fun skits and a lot of creativity.
We hope that you and the kids in your life are having some good conversations about money thanks to this podcast – and that you’ll help us continue making it with your donation today.
This show is made possible in part by The Ranzetta Family Charitable Fund and Next Gen Personal Finance, supporting Marketplace’s work to make younger audiences smarter about the economy. Next Gen Personal Finance is a non-profit that believes all students benefit from having a financial education before they cross the stage at high school graduation.
Kids learn by doing. Now, kids can do money with Greenlight — the debit card for kids that parents manage by app. Greenlight saves parents time and brings them peace of mind with instant money transfers, flexible spend controls and more while kids learn smart spending habits and the power of saving.