Kierra Schwab
4/18/2016
A3
Mr. Reuter
Girl Scout Cookies Made Me File for Bankruptcy
How much would you pay for a box of Girl Scout cookies? What is your price limit for these completely irresistible snacks? Half a decade ago, a box of Girl Scout cookies would go for about $3.50, which albeit expensive was doable. However as the years have passed these cookies’ pricing has grown fairly substantially and in many areas people shell out $5 for just one box. This is not even the price they should be, if the price of cookies kept up with inflation rates since 2004 “...the cookies would now cost $5.84 a box.” (Moyer). Even with the expected 10-15% sales loss, profits won’t take too harsh of a blow this cookie season, which is one of the reasons why the price is not yet nearly $6 a box.
Despite the recent raise in pricing, Girl Scout cookies still receive an extremely high yearly revenue, approximately $700 million in profit since 1999 (McEnery). Considering how popular these desserts are, it’s no wonder the sales are doing fine, I myself recently bought a few boxes in a moment of weakness and contributed to this enormous powerhouse of elastic goods. I am part of the reason why Girl Scout sales aren’t hurting too badly because with my own contribution I helped the shift taking place in the Girl Scout cookie’s economic equilibrium. The supply of cookies went up, but the demand of the consumer for cookies is so strong that even with the bigger expense, about the same amount of people are still willing to pay for their fix of peanut butter patties (aka, the superior scout cookie).
If the taste of these cookies doesn’t convince you enough to spend half your college fund on them, a lot of the profits go to helping your local council and scout troops. This means the next time you can feel people judging you with their eyes while you fill your arms with enough Caramel Delights to last the winter, you can simply retort to their stares with the satisfying fact of helping your community. This in turn helps the economy, which means that it’s ok to take out that second mortgage for just one more box.
Works Cited
(Moyer, Liz) "$5 Thin Mints? The Changing Economics of Girl Scout Cookies." WSJ. Web. 18 Apr. 2016.
(McEnery, Thorton) "How the Girl Scouts Built Their $700 Million Cookie Empire." Msnbc.com. 30 Mar. 2011. Web. 19 Apr. 2016.
The problem with food products, especially sweets, is that they can get you hooked on them, and so even if the price of them goes up, the product still retains a significant portion of its consumers, not because those consumers want to pay the new, higher price, but because they can't help themselves.
ReplyDeleteWow, I never really knew how profitable girl scout cookies really were. While I am not a girl scout cookie fan, obviously there are enough out there to generate 700 million dollars in profit. It is nice how almost all of their profit goes back to the local troops, and helps these girls with people skills in the process of selling these cookies.
ReplyDeleteThat is really shocking, I agree with us paying to much just for some girl scout cookies. There really should be a person lowering these prices because I know that every year people are going to get some and if you hit above where the supply and demand is your not going to be getting any costumers and you are just going to have to lower prices back down to where you were before and you may have to go below that because of extra boxes that you may have gotten.
ReplyDeleteI completely agree that Girl Scout cookies are way too expensive. It’s unbelievable that people are actually willing to pay $5 for one box of cookies. It would be interesting to see what would happen if another cookie company made cookies similar to Girl Scout’s, but for less money. I think that that company would earn the majority of the profits that Girl Scouts was once getting, and then Girl Scouts would reduce their prices. This change would be ideal for consumers.
ReplyDeleteI myself prefer a nice thing of oreos over a box of girl scout cookies. None the less, I believe the mass media advertising these cookies is a big part of why they're so popular. There is even a brand new movie, titled "The Boss", that is solely about the sale of girl scout cookies and of how big an empire it is.
ReplyDeleteYou have to admit that girl scout cookies have become a huge part of our economy. People have the start of the season marked down usually so they know exactly when they can get their favorite junk food. I am guilty of this as well. last year I spent about $100 to make sure I had enough, and it was still all gone in about a month and a half.
ReplyDeleteThese cookies are very popular, even when I was at the mall I saw a huge kiosk selling them. None the less, these cookies are good but aren't worth the $5 mark. It's scary to see that the inflation rate has increased $1.50 for them in the past decade. Although the cost is very high, many still will purchase the box of cookies, because it is going to a good organization. For example, my parents often buy a few boxes from people because they know them and they know it's going to a good organization. Overall, great topic of choice and overall good use of economic vocabulary words.
ReplyDeleteI completely agree that these cookies while very delicious, the thin mints specifically, are very overpriced. This year alone my family spent probably upward of $50 on about 15 boxes. I enjoy these cookies but with the prices rising I do not see myself continuing to purchase these. Although the profits go towards something I did once enjoy as a child I feel that they are becoming too expensive.
ReplyDeleteI agree that the Girl Scout cookies are delicious, but it's hard to justify spending $5 on them when you can get similar knock-off cookies for a much smaller price. When people purchase Girl Scout cookies, it is almost like they are purchasing them more for the name. The fact that they are a seasonal food makes them much more desirable than they would be if they were sold year-round. I enjoyed your post and thought it was an interesting topic.
ReplyDeleteGirl Scout Cookies are actually the best??? Since I'm still a dependent, I don't really have to worry about the price of cookies. I suppose I should start to keep an eye on them now since I'll be becoming independent soon. I'm not entirely up to date on the whole cookie scene--so I'm not sure if they have sales or whatever. In any case, I don't think GSC will do poorly--seeing that they have been doing well since forever. The cost really isn't that big of a deal because of the inflation rates in the US--and besides; who needs heating when you can pack on winter pounds with GS cookies. c:
ReplyDeleteIt's great that they are using profits to aid towards girl scouts and troops and things like that, but relating to our previous unit in Economics if the prices keep going up way too high people won't want them at some point. Personally that's the reason why I don't buy them anymore, just too expensive
ReplyDeletePeople count down the days until the girl scouts come out and start selling their cookies. It’s a huge deal to many people, and almost every family ends up buying at least 5 boxes. You had good humor and voice throughout the whole piece. It really affects our economy and girl scout cookies really are a win win for the consumers and the community. Although I don’t like girl scout cookies they bring in a huge amount of profit. Nice Job!
ReplyDeleteI found it very interesting that although the price keeps going up on the cookies the demand does not change. I wonder when the price will be too high for the consumer and the demand will drop. If there is a surplus of goods and very little demand this could really hurt the girl scout community and they will not be able to do as many activities. Another interesting aspect is that there is a health movement right now and it seems like everyone is eating more healthy and a lot of people are turning vegetarian or vegan. I wonder what this could do to the girl scout cookie sales compared to previous years. In addition as a result of all this healthy eating I wonder if they will make new cookies that are healthier with better ingredients.
ReplyDeleteWhat a great marketing strategy Girl Scouts uses! Not only do they sell door to door, they are set up in front of local grocery stores selling. Not to mention all the parents that take the forms to their work. It seems no matter how much the cost, people will always buy them. Thin mints all the way!!
ReplyDeleteThese girl scouts business tactics are very effective. Whatever secret tactics they use, be it bribing or holding a gun to the consumers face, it works very well and the cookies are pretty good. Thin mints are the only cookie.
ReplyDeleteI know that Girl Scout cookies are very popular and people enjoy eating them, but I didn't that the price for them was up to $5 dollars now. It seems that Girls Scout cookies are a normal good when they start selling them because you can't get them at a grocery store. And then during the time it's not selling other cookies people get are inferior goods waiting to buy girl scout cookies again. But, paying that much for a box of cookies once a year or so doesn't hurt.
ReplyDeleteIt's funny because Girl Scout Cookies aren't heavily advertised; there are no commercials for them or anything like that they are just so good that their popularity increases by word of mouth. However, if the price keeps increasing I think their sales will decrease because there's only so much money people are willing to spend on cookies. I think for right now the price is adequate since the money goes to support local troops and the scouts and the Girl Scout cookie program itself teaches young girls quality skills they'll need later in life.
ReplyDeleteGirl scouts could be thought of as crooks in one manner, five dollars for a box of cookies that in a normal household will last for maybe a week is a crime. However we as consumers cannot resist, many of us will fork out almost fifty to seventy dollars to students or the neighborhood girls that come door to door bagging you to buy their delicious goods. Not to mention their sales pitch, consisting of how much it will help their troop, or how they will get to go camping with the money, or even how they are going to get an awesome prize if you buy "just one more" box. No matter how ridiculous the prices are we as consumer will always buy “one more box” of cookies.
ReplyDeleteI never really took into account how much people could be spending on Girl Scout Cookies. After reading it makes perfectly good sense because my family along buys several boxes, and taking into account of all the other families would add up to a huge profit. The supply increases along with the demand which is why people go crazy if they can't find them at their local store. Polishing off one box is easy because they aren't packed with enough cookies (cough cough caramel delights). This is why it's easy to see how people continue to buy cookies until their needs are met (which is never).
ReplyDeleteGirl scout cookies have been popular for as long as I can remember, but I was never aware that they were quite this popular. A product's price increasing while simultaneously maintaining the same demand is ridiculous to think about, especially when the price almost 43% in 5 years. Personally, I'd attribute most of this success to people's inability to say no to girl scouts, while the rest of it would likely go to the addictions many people have unknowingly built after enjoying the same cookies year after year.
ReplyDelete