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Little_Chicken_Solution_Edington.xlsx (13.8 KB)
Here’s my solution
Challenge2b_Dataset_Little_Chicken.xlsx (12.5 KB)
He did make a little bit more net income offering the free drinks, but he could make even more by changing his strategy a bit. The free drinks increased his sales a lot, so he could either limit the number of free drinks people can take or charge a small amount for each drink. Even if he charged $.50 for a drink it would decrease his loss on the drinks.
This is my solution! He made a little bit more money with the mini fridge than he did without!
Challenge2b_Dataset_Little_Chicken.xlsx (12.4 KB)
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Copy of Challenge2b_Dataset_Little_Chicken.xlsx (12.5 KB)
Here is my solution!
OReilly_LittleChickenChallenge.xlsx (12.8 KB)
Tom will make more money if he keeps giving free drinks.
After using his new strategy, there was an increase in net income so it was a good decision. If he would like to maximize the profitability he could either set a limit on how many drinks people can take, maybe set it to two. He could also put the mini fridge behind the counter so that people have to come up and ask for a new drink, which might deecrease how often people decide to get another one.
KateDebenham_Challenge2b_Dataset_Little_Chicken.xlsx (12.6 KB)
Here is the solution I got! Although offering free drinks was an effective way to increase the sale of chicken, I think that Tom should limit each customer to one drink since he has a lot of expenses associated with his sales. Doing so would help him increase his net income.
While Dave makes 40 dollars extra profit across his two sample periods by implementing the free drink strategy, he is still missing a number of factors to take into account. 1. Electricity usage 2. Employee time usage 3. Sample size 4. other more cost-effective strategies (free fountain drinks)
I would recommend that Dave explore more strategies while maintaining the integrity of his original idea, namely, offering free fountain drinks which are by far the cheaper option.
Challenge2b_Dataset_Little_Chicken- Ethan Emerson.xlsx (13.6 KB)
Challenge2b_Dataset_Little_Chicken.xlsx (12.8 KB)
Here is my answer. It looks like he made $34.86 more after giving free drinks. If he considers the time of purchasing and stocking the drinks worth that amount he should keep his current policy. It would be interesting to see how discounted drinks would affect his sales and net income.
Here is my solution! Though tom did increase his overall sales he also increased his expenses considerably. I think that it is great to bring in more customers by offering free sodas, however he could increase his profits a lot more if he limited the customers to 1 drink and if possible could buy the drinks at a lower price (maybe stock up on drink when they are on sale.)
I decided to compare average sales in the different periods. Then I made the simple I/S.
0611_Floyd_ChickenTechHub.xlsx (20.7 KB)
Challenge2b_Dataset_Little_Chicken.xlsx (12.5 KB)
Great exercise and challenge! I enjoyed it and was able to remember some more excel tips and tricks. I think the mini fridge strategy was effective! His sales went up a lot, and even though expenses increased significantly, he still grew his net income. I think it would be smart for Tom to keep the minifridge, but maybe have a limit for the number of drinks each person can take, as some customers were abusing the generosity. He also could charge a highly discounted price for the drinks, like $0.50 for each beverage to cancel out some of those costs.