- What was, and what happened in the Spring Market
The Spring Market was a first-hand experience to put everything taught in business class, into practice. For me and my partner Ying Ying Fang, we had to complete many steps to turn our business into a reality. First, we came up with a product or service idea to sell during the spring market. Our class would then individually as separate businesses; order products, produce products, market them and price them for the Spring Market. Our business sold watches, necklaces, bracelets, and handmade roses, quite a number of products. With our large range of products, our business was able to reach greater numbers of demographics and customers. Our business had bigger costs and risks due to an increased number of products sold. Our investment paid off at the end of the market as we escaped deficit and made quite a lot of profit.
- What was my experience in the Spring Market and what did it teach me?
We were challenged in many diverse areas to turn the market into reality. Our understanding of customer and demographics was tested in the decision to create products or services. Understanding the biggest demographic in our location ensured we would target the biggest group of consumers, increasing sales. Pricing and calculating when our product would break out of deficit, depended on the financial literacy we held. When ordering products, for example, understanding the investment for each cost made sure the product cost would not exceed the product value. If we take, ordering higher quality material, for example, that cost an additional ten dollars for ten products. But then the value of each of the products only increases by fifty cents. The product value in total only increased by five dollars. But the total investment was ten dollars, five more dollars than the product value gained, meaning the investment would be a losing decision of five dollars. This was one of many examples of financial literacy and customer understanding that was tested in the Spring Market. But the organization, punctuality and a persistent mindset were definitely softer skills that were more apparent in importance as well. But understanding supply and demand, inventory and stock, as well as cost and expenses are all academic concepts needed to run the business. I have grown the most in the skills and areas, soft or academic, all in the Spring Market.
- A core competency to reflect upon
Creative Thinking
Our product was originally handmade roses. In our surveys, people were willing to buy our product and we were confident our roses would bring a profit. However, the profit we were estimated to gain from the roses was small. The price of the roses was low, and even though the cost was low as well, it did not compare to the nearly six dollar profit each of our watches sold. The idea to sell watches came when my partner realized how low our profit was going to be. We decided we needed another, higher priced product. Higher priced products tend to cost more but they also profit more money. For example, if the profit was double the cost and a product was priced two dollars, we would profit one dollar. But if we priced a product, following the previous cost and profit, at ten dollars, we would profit five dollars meaning we sell to four fewer customers to gain the same profit. There was however risk with higher priced products as we may lose buyers due to our higher prices. The risk and idea paid off when we began to profit in our second business day. Our business would have had a low-profit-margin, but with a new, original, and improved idea our business was able to grow to a number both me and my partner never expected us to grow to.