By Callie Bednarek
As the cookie season wraps up, many of us are noticing that our kitchen cabinets are, once again, freshly stocked with boxes upon boxes of Girl Scout cookies. Beyond the fact that it’s hard to refuse the little girl coming to your door and reciting her well-rehearsed one-liner of “Would you like to buy some Girl Scout cookies?”, we continue to buy each year because of the product’s scarcity. Since we can only buy the product once a year, we are willing to splurge a bit more, and stock up at the one time of year they’re available, which is why some of our wallets may be feeling lighter right now.
However, recent spikes in cookie prices are begging the question: How much are we willing to pay for a box of thin mints? In the past couple of years, Girl Scout cookie prices have been on the rise. We’ve seen an increase from $3.50 to $4.00 in our area, and places like L.A. are seeing jumps up to $5.00 (Moyer). With a recent increase in baker cost from $.85 per box to $1.10, Girl Scouts must estimate a demand schedule to best determine how much they can increase their sale prices without losing too many customers. Below is an approximate distribution of money for each box sold at a price of $4.00.
This distribution is also affected by individual troop decisions. For example, some troops opt to spend some of their profits on rewards for the girls selling the most boxes, which decreases the troop proceeds from around $.80 to $.75 per box (McKnight). The opportunity cost in this case is the troop activities they may not have enough money for anymore. However, some troops argue that the rewards increase competitiveness, and therefore increase the total sales for that troop. If this is the case, then the marginal costs outweigh the marginal benefits, making the decision to reward girls worthwhile.
On the consumer side, we are being forced to make tough decisions regarding our purchases as well. While it’s understandable that prices need to be raised due to increased baking costs, and our natural increase due to inflation, we can’t help but cringe when prices spike. Here is a graph depicting the price of a box of cookies compared to the inflation rate over the last century. To better understand, “A value of 1 indicates the increases are equivalent, and this is indeed the case for the majority of the last century.”
According to this graph, the price of cookies has been increasing steadily along with the rate of inflation. Still, after repeated price increases, many of us will be feeling the income effect, and need to cut back on extra spending even if it means saying no the cute Girl Scout at your door. $5.00 may be the breaking point for many of us. Feel free to check out more about price increases in this video.
Works Cited:
Abc15com. "Get your wallets ready! It's Girl Scout cookie time!" YouTube. YouTube, 23 Jan. 2017.
Web. 04 Mar. 2017.
"Girl Scout Cookie Price History." On The Feed. N.p., 01 July 2011. Web. 04 Mar. 2017.
McKnight, Amanda. "Now on sale: Girl Scout cookies." SWNewsMedia.com. N.p., 15 Feb. 2015.
Web. 04 Mar. 2017.
Moyer, Liz. "$5 Thin Mints? The Changing Economics of Girl Scout Cookies." The Wall Street
Journal. Dow Jones & Company, 02 Feb. 2015. Web. 04 Mar. 2017.
Roberts-Grey, Gina. "Girl Scout cookies by the numbers: Just where do all those dollars go?"
AOL.com. AOL, 14 July 2016. Web. 04 Mar. 2017.
WochitGeneralNews. "Girl Scout Cookies May Be Getting More Expensive." YouTube. YouTube,
05 Nov. 2015. Web. 04 Mar. 2017.
Links:
Girl Scout cookies are definitely a demanded item. I know my family always buys a lot of them because, as you pointed out, they are only available once per year. This scarcity is the reason that the prices can go up and still result in a lot of sales. Although people aren't happy to fork out more money for their cookies, almost no one can refuse a girl scout cookie or the cute little girl standing at their door. However, if the price continues to rise, the people may begin to buy less because it is simply not feasible for them to spend so much on a box of cookies, no matter how yummy they are.
ReplyDeleteEveryone has always loved a good girl scout cookie, and that is why the benefit of buying a lot of cookies has always outweighed the cost. Even with the increase in price it seems like the quantity demand has not changed yet, but it seems like it might change if the cookies continue to raise in price. Even if everyone loves a good girl scout cookie they are only willing to pay so much for a box of cookies, and now a days it seems like people are finding new ways to make these cookies at home. If the price of making this substitute item drops lower than the price of a box of cookies, many are going to stop buying and start making.
ReplyDeleteI think that there has always been a high demand for girl scout cookies. If the prices keep increasing the demand will decrease because of the consumer income and the consumers can't afford the product. If consumers stop buying and decide to buy substitutes at a cheaper price than they can't afford their bakers. Without bakers and consumers wanting to buy cookies their quantity demand decreases.
ReplyDeleteIt is very interesting to see all the points you make in this post. And I definitely agree that $5 is the limit for many consumers. It would definitely be the limit for me because past $5 its just not worth it and the girl scouts probably have to break bills and its just such as hassle. But anyway, it would be interesting to see how that money made from each box is distributed in depth and how much money is involved in this business total. That way we can truly look at if a box is truly worth it.
ReplyDeleteYour post was very strong and included an abundance of support and vocabulary. I was especially interested by your visuals as well. Often, we do not think of the distribution of profit or the demand schedules of individual goods, and your visual provided this information in an appealing manner. In addition, your second visual was very clear and I thought it was interesting that you related the increasing cost of cookies to the increasing inflation rate. The only suggestion I have is that you could’ve discussed in further depth how the cookie prices are increasing at a faster rate than inflation and why that is happening. Overall, great job!
ReplyDeleteIt is noticeable that Girl Scout Cookies are always in a high demand, especially since they only sell the cookies once a year. Most people like buying these cookies because they simply taste good. However, when the prices continue to rise, potentially to $5.00 per box, that is pushing the limit of most consumers because this small box of cookies may not be worth the price. It is interesting that Girl Scouts do not sell they cookies more year round. Then they could possibly make the prices cheaper as more people are constantly buying the cookies instead of the week-long sell that normally occurs once a year. Increasing the price of the box of cookies might bring more revenue to the company and each troop, however it might take away more customers in the long run.
ReplyDeleteI think the main reason that the price of Girl Scout Cookies is rising is not because of a change in demand of the cookies themselves, but a change in demand of Girl Scouts. As less and less girls join Girl Scouts, the operating cost of running the program increases, leading to a greater need of revenue which would cause them to raise the prices of their cookies. Because the Girl Scout Cookie program is only sold over a short period of time, the Girl Scouts must try and maximize their revenue so that they can minimize losses and maximize profits. And besides, I think anyone would buy a good box of Girl Scout Cookies no matter the cost.
ReplyDeleteDue to the income that a household gets they will either buy a lot of cookies, some cookies or none at all. It also depends on the taste of the customer some people may not like Girl Scout Cookies and therefore opt to have none due to this. Being a girl scout back in elementary school I remember it being difficult to get a lot of boxes sold since the price is quite expensive. Also some people may not have money in their budget to buy girl scout cookies especially since they are a lot more expensive than cookies you can buy in the store.
ReplyDeleteI agree that due to the scarcity of Girl Scout Cookie sales, most people will buy an abundant amount of cookies regardless of the price. Seeing as they're only available once a year and they're super dank, people will probably pay whatever to get a couple boxes of delicious Thin Mints :)
ReplyDeleteNo matter the price, I think there will always be a handful of people willing to splurge and buy a few boxes of their favorite cookie, simply because they are a scarce product and have limited buying times. However personally I think that anything above $4 is starting to get to be a little much for these cookies. They are a cookie staple and are great, but a small box of cookies is not necessarily worth the price when you can buy two packages of oreos, or some other cookie for the same price. While the idea of offering a prize for the best seller sounds great for competition, girl scout cookies are not an item that most children have a problem selling and they should just be willing to sell and support their troops, because of potential other benefits the profits may cause.
ReplyDeleteAs a high school student, I am easily able to whip out $4.00 in quarters for a good 10 minutes of cookies. I feel like for most people, $4.00 is a good cost. However, as the cost rises, people will realize they could be spending that $5.00 on a burger rather than a box of cookies. The rising cost would not be liked by many. Along with the comment above, I do see the decreasing number of girl scouts causing the prices of their goods to increase so they can keep their system operating. I do disagree that people will buy cookies no matter the cost. What if it becomes $10/box for 16 cookies? Is it really worth it?
ReplyDeleteThis was a interesting piece to read and can feel the connection with it. Year after year my family is one of those that is constantly stocking up on these delectable cookies until this year. Although they are constantly in high demand in my family the large price for each box has gotten us along with many others to stray away. It was interesting to see where all the money goes for the sales and I liked the statistics and graphs that you presented. The only thing that could have possibly been added was talking about why the prices are going up so much, but the inflation isn't. Great overall piece to read very enjoyable.
ReplyDeleteJust last week when I bought girl scout cookies, I had their little pamphlet that they give to you to choose which cookies I would like, and each box was below $4, now the are close to 5 dollars per box. I still bought a dozen of them. I under stand the scarcity is causing them to raise prices but it's because girls in this generation don't want to be in girl scouts. Which costs more money to run the operation of selling cookies.
ReplyDeleteI, too have noticed an increase in the price of Girl Scout cookies, and while it has not inhibited my family from buying 5 or 6 boxes, if the price continues to rise I'm sure it will. Over the last couple years, more and more girls are dropping out of Girl Scouts earlier and aspire to do other activities. Because of this, the Girl Scout organization gains less revenue and would have to raise prices in order to maintain the programs success. I think that the Girl Scouts would benefit if the cookie season were a little longer. If it were year round, people wouldn't feel the need to buy as many because they could get them at any time. Therefore, extending it just one or two more months could make a huge impact.
ReplyDeleteWhen I was a Girl Scout in elementary school, the price of a box for Girl Scout cookies was $3.50 and my family thought it was expensive then. My little cousin is a Girl Scout. My family bought four boxes of Girl Scout cookies at $4.00 a box this year. As a consumer, I feel the price is overpriced for a small box of cookies. Since prices of the cookies has increased every year, we are willing to buy less boxes every year. If I went to the store and saw a box of cookies for $4.00, I wouldn’t buy them because the marginal cost does not outweigh the marginal benefit for any box of cookies. However, we support the my little cousin and the Girl Scouts, so we are willing to pay the high prices.
ReplyDeleteGirl Scout Cookies have always been expensive compared to cookies that you can buy at the store. for example, if you look at the price of an Aldi's box of cookies, where you get twice as many, compared to a box of Girl Scout Cookies, the price is nearly double. However, you make an interesting point about the demand. Girl Scout Cookies are scarce so people are willing to buy 10 boxes because they know it's a "once a year" purchase. At what price will people stop splurging? I think that selling Girl Scout Cookies are a great incentive for the children but selling these boxes for more than five dollars is ripping the community off. These Girl Scouts might have a better chance doing other fundraisers as well.
ReplyDeleteGirl Scout cookies are a staple for me - I have to buy them every year, because I know I won't get them again until the next year. This is how the company is able to raise their prices; they know their cookies are in high demand so people will be willing to pay a ridiculous price for them. Selling cookies is a great program for the Girl Scouts, but there must be a point at which people will stop paying the steep price for one box. When you buy a box, you're paying for the brand; there are obviously much cheaper options at your local Walmart, but it's hard to say no to the little girl at your front door. If they keep raising prices, they could potentially lose customers as more and more decide it's not worth it.
ReplyDeleteEach year many people look forward to purchasing GirlScout cookies, although they may not be healthy. When they evaluate their marginal costs and benefits, they often decide that the benefit of receiving and consuming cookies, outweighs the cost of each box. This is proven by the increase in price, yet the sales have not decreased drastically. My sister is a GirlScout and each year she aspires to sell more cookies than any other girl in her troop. She does this because she is motivated by the incentives that the program offers her- plus the satisfaction of increasing her sales. If she is sent away by a cynic, she is motivated to work twice as hard. No matter what, GirlScout cookies will be sold from year to year. The price seems inconsequential when compared to the quantity that people demand.
ReplyDeleteNow that I am becoming an adult and starting to have large amounts of cash, buying girl scout cookies becomes harder and harder not to buy. One day I aspire to buy out a troops stand and take all of the boxes home with me. However, with this rising cost of the cookies the incentive of the cookies might not be worth all of the money I would have to spend. Additionally, this mindset is more of a cynic mindset than need be because the reason I should be buying them is out of love for my fellow scouts. However, I think that it is good that prices are going up because then the scouts get more funding.
ReplyDeleteConsidering how big of a staple girl scout cookies are I really don't see the price of them effecting the amount that is purchased very much. I personally wouldn't buy too many boxes of cookies, but maybe a couple when they are being sold. You wonder if maybe selling them twice a year instead of once would be a good way to go at things and increase sales. Overall they're such a staple I don't see the amount purchased changing anytime soon.
ReplyDeleteMany people have enjoyed Girl Scout cookies for as long as they can remember, so it's no surprise that people are willing to pay very high prices if, for nothing else, the nostalgia of enjoying a box of thin mints. At some point, though, you start to wonder: How much is that feeling of nostalgia and a smiling Girl Scout really worth? If prices continue to rise as they recently have, I suspect that that question will be answered soon. On the other hand, if Girl Scouts manage to cut the processing costs of Girl Scout cookies there may be a surge in Girl Scout cookie purchases as the consumer expectation of cookie prices would be wrong and consumers would jump on the opportunity to buy up their cookies.
ReplyDeleteI definitely agree that Girl Scout cookies are quite pricey. However, the money that is spent on those cookies goes to way more than to some troop leaders pocket. When you buy Girl Scout cookies, you are supporting these young girls and the community they live in. The money goes to national organizations that spread awareness to education, child abuse, the LGBTQ community, and women's rights. The money also goes to local organizations that support the well being and growth of strong girls and the community they live in. While I absolutely agree the cookies are expensive, they are for a very good cause. That's not to say you should be spending all your money on them, but spending a little money to get cookies and promote a great organization is a win-win.
ReplyDeleteThere is definitely no doubt that Girl Scout Cookies are a high demand item. I know from personal experience that I can't turn down the delicious cookies. However, the price increase can be a turnoff to buyers. Even though most people like to splurge out once a year on these cookies. I think that because the cookies are sold only once a year it allows them to get away with the price increases. However, I think it could convenient for the Girl Scouts and the buys if they sell their cookies for a longer amount of time or more than once a year. Then they could lower their prices which would attract more buys and they would still be able to make a profit.
ReplyDeleteI agree that the price of Girl Scout cookies is getting quite high. $5 for a Girl Scout cookie can seem like a good idea for the troops, but as people buy more and more boxes, those prices add up to be a larger number than the consumer would want to pay. However, since there is limited time in selling, people are willing to pay out in big bucks to buy a large supply of cookies that will last them, and not have to worry about the costs.
ReplyDeleteBeing a cookie lover, I always spend a pretty good amount on Girl Scout cookies. There are one of those best cookies I have ever had. It is true that their prices have gone high, but I am sure they are not going lose their high demand because as you said, their product is a scarcity. They sell their cookies once a year, making many customers wait for the next sale. In fact, the organization works in this process to gain more profit, instead of selling their products every month. I would consider the Girl Scouts as a monopoly because they make their cookies in a unique way where none of other cookie companies can make, they also have a strong hold on demand no matter how the price changes.
ReplyDelete