Operational & capital costs

Discover what costs you need to keep in mind when setting up a business.

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Een stap-voor-stap handleiding om het spel te spelen

1

Explain the difference between capital and operational costs.

2

The player choose which business they would like to set up.

3

The player write a 'C' before each capital cost and an '0' before each operational cost.

4

The players agree on a price for each cost and write it on the blackboard.

5

Start a discussion based on the players' choices.

Suggested questions:

  • How much are you paying for capital costs and how much are you paying for operational costs?
  • What is profit?
  • Which price do you need to ask to make profit?
  • How much do you save? How much do you reinvest?
  • What effect has selling more with the same capital costs on your profit and savings?
6

Negotiation game: One player starts up his business (e.g. orange juice stand). Two players are selling the items he needs to start up his business (e.g. orange press, cups...). The first player needs to negotiate the price of each item with the two other players. Player 4 is the final customer who wants to buy player 1's product (e.g. orange juice).

7

Discuss the importance of profit and the limits of negotiation

Extra informatie over het spel

  • Capital costs are total costs of items that you need to buy only once in order to start a business.
  • Operational costs are costs of things you need to buy continuously in order to continue running your business.

Variaties

Choose a profession from another BUSINESS panel and investigate the needs and wants and the operational and capital costs.

Specifieke leerdoelen

  • Understand the difference between capital and operational costs.
  • Reflect on the impact of these costs on negotiation, competition, pricing, profit, saving and budgeting.

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