The Economics of Everyday Things: Girl Scout Cookies | Freakonomics

Intro

In this episode of Freakonomics, the hosts explore the fascinating world of Girl Scout Cookies and the economics behind this beloved annual tradition. They delve into the business side of selling cookies, the challenges faced by the Girl Scouts, and the valuable skills that young girls can learn through this experience.

Main Takeaways

The Business of Girl Scout Cookies

• Girl Scout Cookies collectively sell around 200 million boxes per year, making it a big business.
• Two corporate bakeries, ABC Bakers and Little Brownie Bakers, make all the cookies.
• The cookie season provides most of the funding for local troops for the entire year.
• The money from selling cookies is split between the regional council, the troop, and the bakery.

Incentives and Strategies for Selling

• Selling cookies can be incentivized by prizes, such as a college scholarship for the top seller in the state.
• Girl Scouts have advantages when it comes to selling cookies, including a good cause and cuteness.
• Selling 180,000 boxes requires dedication and planning, including creating a spreadsheet with goals and breaking down sales targets.
• Cookie parents, such as the “cookie mom,” are a key ingredient in selling more cookies.

Evolution of Cookie Sales

• Girl Scouts have transitioned from selling door-to-door to setting up booths in high-traffic areas and using technology like mobile card readers and online sales.
• The pandemic added challenges to the cookie business, leading to partnerships with food delivery apps like DoorDash for distribution centers at local restaurants.
• DoorDash offered same-day delivery for Girl Scout cookies for $3.99.
• Some parents claimed it tilted the playing field, giving an advantage to those with more money.

Lessons Learned from Selling Cookies

• Selling Girl Scout cookies teaches teamwork, goal setting, and persistence, and can be an opportunity to build business skills.

Summary

The Business of Girl Scout Cookies

Girl Scout Cookies are not just a tasty treat; they are a major business. With around 200 million boxes sold annually, the cookie season provides crucial funding for local troops throughout the year. The money from cookie sales is divided among the regional council, the troop, and the bakery. This revenue-sharing model ensures that everyone involved benefits from the cookie sales.

Incentives and Strategies for Selling

To motivate Girl Scouts to sell more cookies, various incentives are offered, such as scholarships for top sellers. The Girl Scouts also have natural advantages when it comes to selling, including the appeal of supporting a good cause and the undeniable cuteness factor. Selling a significant number of boxes requires careful planning, with goals set and sales targets broken down in a spreadsheet. The involvement of dedicated “cookie parents” plays a crucial role in boosting sales.

Evolution of Cookie Sales

Over time, the Girl Scouts have adapted their cookie-selling strategies. They have moved away from traditional door-to-door sales and embraced modern methods like setting up booths in high-traffic areas and utilizing technology such as mobile card readers and online sales platforms. The COVID-19 pandemic presented additional challenges, prompting partnerships with food delivery apps like DoorDash. While same-day delivery provided convenience, it also sparked debates about fairness and socioeconomic advantages.

Lessons Learned from Selling Cookies

Selling Girl Scout cookies offers valuable life lessons for young girls. It teaches them essential skills like teamwork, goal setting, and persistence. Additionally, it provides an opportunity to develop business acumen and entrepreneurial spirit from an early age.

Conclusion

The economics of Girl Scout Cookies go beyond a simple exchange of money for a delicious treat. It’s a complex system that supports local troops, teaches valuable skills, and creates opportunities for young girls to thrive. Whether it’s the business side of cookie sales or the lessons learned, Girl Scout Cookies have a lasting impact on the lives of those involved.