Case Study: Car Wash
Heres another imaginary case study. Coach Ann Foley wanted a fundraiser with zero cost so she organized an all-day car wash. The thought of earning 100% profit to pay for half of her youth soccer teams uniform cost was too enticing to pass up.
In order to reach the $1,200 goal, her 19 players needed to wash 133 cars, only one per hour per player. A popular store in a high-traffic area allowed the team to use its parking lot, water, and even donated the soap and sponges. It seemed too easy.
When it started to rain, Coach Foley knew that the car wash might not be as profitable as she had hoped. All of the players and several parents worked for seven hours, yet only washed 48 cars and collected $336 in profit. Since they only had one hose, it took 10 minutes per car and they could only wash one at a time.
Coach Foley estimated that they lost about 12 other customers who didnt want to wait in line and left prematurely. Although the players had fun and it was good for team unity, they spent 189 total hours (19 players + 8 adults x 7 hours) to earn a paltry $1.78 per hour.
WHAT WENT WRONG
All-labor projects (bake sales, golf tournaments, auctions) have similar results too much time for too little profit. Coach Foley assumed more people would want their car washed, but they couldnt wash enough cars and charge enough to make it profitable.
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