Price Fixing on Articles Made for SS 3

Class: SSS 3
Term: First Term
Week: 6
Age: 16 years
Duration: 45 minutes
Subject: Garment Making
Curriculum Theme: Entrepreneurship and Business Skills
Previous Lesson: Permanent Sewing of Skirts and Trousers
Topic: PRICE FIXING ON ARTICLES MADE
Subject Matter: Factors to be considered when fixing price cost of material. Use e.g fabric, sewing accessories, sewing machine; Quantifying energy input e.g human, electrical and other facilities in the workshop; Input of rental rate for the shop; Calculation of profit margin minimum of 20%; Determination and fixing of price

Specific Objectives

By the end of the lesson, pupils/students should be able to:

Cognitive Domain

• List the factors to consider when fixing the price of articles made.
• Explain how to quantify energy input in garment production.
• State the minimum profit margin for articles made.

Affective Domain

• Appreciate the importance of accurate price fixing for business sustainability.
• Value fair pricing practices in garment making.

Psychomotor Domain

• Calculate the profit margin for a given article.
• Determine the final selling price of an article made.

Reference Materials

The following resources were used in planning this lesson:

• 2025 Revised 9 Years Basic Education Curriculum
• Relevant State Unified Scheme of Work
• Garment Making for Senior Secondary Schools Textbook
• The HeadTeacher Scheme of work

Instructional Materials

The teacher will teach this lesson with the aid of:

• Chart showing factors to be considered in determining prices
• Garment fabric samples
• Sewing accessories (e.g., threads, buttons, zippers)
• Calculator
• Whiteboard and markers

Rationale for the Lesson

This lesson is essential for students to understand the business aspect of garment making. It equips them with the practical knowledge and skills needed to set competitive and profitable prices for their products, which is crucial for their future entrepreneurial success in the fashion industry.

Prerequisite/Previous Knowledge

Students should have a basic understanding of garment construction, different types of materials, and simple arithmetic calculations.

Lesson Content/Board Summary

PRICE FIXING ON ARTICLES MADE

Factors to Consider When Fixing Prices

When fixing the price of articles made, several key factors must be carefully considered to ensure profitability and fair pricing. These include:

1. Cost of Materials: This covers all raw materials used in making the article.

• Fabric: The main material, cost per yard or meter.
• Sewing Accessories: Items like thread, buttons, zippers, interlinings, labels, etc.
• Machine Depreciation/Maintenance: A portion of the cost of using and maintaining sewing machines and other equipment.

• Human Labour: Wages for the tailor or seamstress, reflecting the time and skill required.
• Electrical Energy: Cost of electricity used for sewing machines, lighting, pressing irons, etc.
• Other Facilities: Cost of water, fuel for generators (if any), and other utilities in the workshop.

Calculation of Profit Margin

Profit margin is the percentage of revenue that represents profit. It is essential for business growth and sustainability. For articles made, a minimum profit margin of 20% is generally recommended to cover overheads and ensure a reasonable return.

The formula for calculating the selling price with a desired profit margin is:

( text{Selling Price} = frac{text{Total Cost}}{1 – text{Profit Margin Percentage}} )

Where:

1. Total Cost = Cost of Materials + Energy Input + Rental Rate
2. Profit Margin Percentage = Desired profit as a decimal (e.g., 20% = 0.20)

Example 1: Calculating Selling Price with Profit Margin

Question: A tailor made a dress with the following costs: Fabric = N3,000, Accessories = N500, Labour (energy input) = N1,500, Shop Rent contribution = N200. Calculate the selling price if the desired profit margin is 25%.

Solution:

Step 1: Calculate the Total Cost.

( text{Total Cost} = text{Fabric} + text{Accessories} + text{Labour} + text{Shop Rent} )

( text{Total Cost} = text{N}3,000 + text{N}500 + text{N}1,500 + text{N}200 )

( text{Total Cost} = text{N}5,200 )

Step 2: Apply the selling price formula with the profit margin.

( text{Selling Price} = frac{text{Total Cost}}{1 – text{Profit Margin Percentage}} )

( text{Selling Price} = frac{text{N}5,200}{1 – 0.25} )

( text{Selling Price} = frac{text{N}5,200}{0.75} )

( text{Selling Price} = text{N}6,933.33 )

Answer: The selling price of the dress is approximately N6,933.33.

Determination and Fixing of Price

After calculating the total cost and applying the desired profit margin, the resulting figure is the determined price. This price should then be fixed as the selling price, considering market competition and customer perception. It is important to ensure the price covers all costs and provides a reasonable profit.

Teaching Methods/Instructional Techniques

Discussion, Explanation, Demonstration, Guided Practice, Question and Answer, Problem Solving

Instructional Procedures

Step 1: Introduction

Time: 5 minutes

Teaching Skill: Recalling/Motivation

Teacher’s Activity: The teacher asks students about the different costs involved in making a garment and why it is important for a business to make profit. The teacher then introduces the topic: Price Fixing on Articles Made.

Pupils’ Activity: Students respond to questions and listen attentively to the introduction of the new topic.

Learning Point: Importance of profit

Step 2: Factors to Consider (Cost of Materials)

Time: 8 minutes

Teaching Skill: Explanation/Listing

Teacher’s Activity: The teacher explains the first factor in price fixing: Cost of Materials. Using examples like fabric, sewing accessories, and machine depreciation, the teacher explains how to quantify these costs. The teacher uses the chart to illustrate the points.

Pupils’ Activity: Students listen, ask questions, and identify various material costs from the chart and samples.

Learning Point: Material cost identification

Step 3: Factors to Consider (Energy Input and Rental Rate)

Time: 8 minutes

Teaching Skill: Explanation/Quantifying

Teacher’s Activity: The teacher explains how to quantify energy input (human labour, electrical energy, other facilities) and the input of the rental rate for the shop. The teacher provides simple ways to estimate these costs per article.

Pupils’ Activity: Students engage in discussion, asking how to estimate labour and utility costs for different articles.

Learning Point: Energy and rent costs

Step 4: Explaining Profit Margin

Time: 5 minutes

Teaching Skill: Definition/Clarification

Teacher’s Activity: The teacher defines profit margin and explains its importance in business. The teacher states that a minimum profit margin of 20% is generally recommended in garment making and introduces the formula for calculating selling price.

Pupils’ Activity: Students listen and understand the concept of profit margin and its minimum percentage.

Learning Point: Profit margin concept

Step 5: Calculating Profit Margin (Guided Practice)

Time: 5 minutes

Teaching Skill: Demonstration/Calculation

Teacher’s Activity: The teacher works through Example 1 from the Board Summary on calculating the selling price with a profit margin, using a calculator and writing steps on the board. The teacher ensures students follow each step.

Pupils’ Activity: Students follow the teacher’s calculation on the board and perform the calculation using their calculators.

Learning Point: Profit margin calculation

Step 6: Determination and Fixing of Price

Time: 4 minutes

Teaching Skill: Application/Consolidation

Teacher’s Activity: The teacher consolidates the lesson by explaining how the calculated selling price is then fixed, considering market factors. The teacher emphasizes that the fixed price must cover all costs and ensure profit.

Pupils’ Activity: Students listen and understand the final step of price determination and fixing.

Learning Point: Final price determination

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

1. List three factors to consider when fixing the price of a garment.
2. How do you quantify human energy input in garment production?
3. What is the recommended minimum profit margin for articles made?
4. If the total cost of an article is N4,000 and the desired profit margin is 20%, what is the selling price?

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Price fixing understanding

Step 8: Note-Taking

Time: 4 minutes

Teaching Skill: Guided Writing

Teacher’s Activity: The teacher guides pupils/students to copy the essential Board Summary notes, including the formula and example, into their notebooks.

Pupils’ Activity: Pupils/students copy the notes carefully into their notebooks.

Learning Point: Recording lesson notes

Step 9: Conclusion

Time: 1 minute

Teaching Skill: Summarizing

Teacher’s Activity: The teacher briefly summarizes the key points of the lesson, reiterating the importance of considering all costs and a healthy profit margin when fixing prices for articles made.

Pupils’ Activity: Students listen and reflect on the lesson’s main points.

Learning Point: Lesson recap

Continuous Assessment/Further Study

Type: Homework

Instruction: Answer the following questions in your notebook:

1. A student made a skirt with the following costs: Fabric = N2,500, Thread and Zipper = N300, Labour = N1,200, Shop Rent contribution = N150. If she wants a 20% profit margin, calculate the selling price of the skirt.
2. Discuss why it is important for garment makers to include the cost of electricity and machine maintenance when fixing prices.
3. Research and list two other factors (apart from those discussed in class) that might influence the final selling price of a garment in the market.

Lesson Keywords

• Price Fixing – The process of determining the selling price of a product or service.
• Cost of Materials – The total expense incurred on raw materials used in production.
• Energy Input – The cost associated with human labour, electricity, and other utilities in production.
• Rental Rate – The cost of using a workspace or shop.
• Profit Margin – The percentage of revenue that represents profit after all costs are deducted.
• Selling Price – The final price at which an article is sold to the customer.

Differentiation

For weaker learners: Provide simplified cost scenarios and guide them step-by-step through the calculations using a calculator. Focus on identifying the cost components before moving to profit calculation. Use a pre-filled template for cost breakdown.

For faster learners: Challenge them to create their own cost scenarios for different garment types and calculate the selling prices with varying profit margins. Ask them to consider factors like bulk production or unique designs.

Suggested Lesson Videos

Search YouTube for: “How to calculate garment cost and selling price”, “Pricing strategies for fashion products”

Teacher Guide for Using This Lesson Plan

Before the lesson, gather samples of garment fabrics and accessories to make the discussion on material costs more concrete. Prepare a clear chart outlining the various factors for price fixing. When teaching the calculation of profit margin, ensure students understand the concept of percentage as a decimal in the formula. Walk through the example step-by-step on the board, allowing students to use calculators and follow along. Emphasize that the Board Summary notes, including the formula and example, should be copied by students during the note-taking step. Encourage questions throughout the lesson to check understanding and address any misconceptions about cost components or profit calculation. For weaker learners, provide extra guidance during the calculation steps, while faster learners can be encouraged to think about market dynamics influencing final prices.