NSSCO Entrepreneurship (6146) study materials
NSSCO Entrepreneurship (6146) study resources

FreshPrint: A Survey That Proves Too Much

NSSCO Entrepreneurship (6146) · Put your knowledge to work in context.

All case studies

FreshPrint: A Survey That Proves Too Much

A Grade 11 learner company, FreshPrint, wants to print notes, past papers and photographs for learners at a school of 1 100 learners. The team surveyed 40 learners, all from their own class, and 32 returned the questionnaire. One question read: "Don't you agree that printing at school would be much more convenient than walking to town?" 28 answered yes. Another asked: "How much would you pay per page? N$1 / N$2 / N$5." The average answer was N$3.80, so the team plans to charge N$5 per page, arguing that demand is proven. Two shops in town charge N$1.50 per A4 page; the team's paper and toner cost N$0.60 a page, the printer was donated, and the school wants N$400 a month for electricity and space. The team has N$300 and two weeks for further research, and the school wants a decision before the next term.

1. Identify three weaknesses in FreshPrint's survey and explain the direction of the bias each creates for the N$5 price decision.

Read the worked answer

1. A leading question. "Don't you agree that printing at school would be convenient?" invites a yes. It measures politeness and agreement, not whether anyone will pay. The 28 "yes" answers are not evidence of demand, and they push the team towards an over-optimistic decision.

2. A biased sample. All 40 respondents come from the team's own class - friends and classmates, one grade out of 1 100 learners. They may be more supportive, more similar in income and more aware of the project than the wider school. The results cannot be generalised to staff, other grades, or parents who might pay for printing. The likely bias is upward: friends overstate their willingness to buy.

3. A price question with no real choice and no quantity. The options N$1 / N$2 / N$5 have no "I would not buy" option, no "don't know", and no quantity or frequency. Respondents answer hypothetically, with no cost to themselves, and the highest option acts as an anchor. The N$3.80 average therefore says very little about what learners would actually pay, and the jump to N$5 ignores the town price of N$1.50 - a 233% premium that the survey never tested.

A fourth weakness is non-response: 8 of 40 (20%) did not return the questionnaire, and their reasons are unknown. If they were less interested, the results are even more flattering than reality. The survey should not be used to justify any price.

2. Calculate the monthly break-even number of pages at N$5 and at N$1.50. Using these figures and the survey weaknesses, recommend a price and justify it.

Read the worked answer

Break-even = fixed costs / contribution per page. Fixed costs are N$400 a month; paper and toner are N$0.60 a page.

  • At N$5.00: contribution = N$4.40; break-even = 400 / 4.40 = about 91 pages a month.
  • At N$2.50: contribution = N$1.90; break-even = 400 / 1.90 = about 211 pages.
  • At N$2.00: contribution = N$1.40; break-even = 400 / 1.40 = about 286 pages.
  • At N$1.50: contribution = N$0.90; break-even = 400 / 0.90 = about 445 pages.

All of these are small: 445 pages is about 0.4 pages per learner per month, so break-even is not the real issue - demand at that price is. At N$5, the team needs only 91 pages a month to cover costs, but it risks losing customers to town at N$1.50. The survey cannot tell them whether students will pay a premium, because the price question had no "would not buy" option and the sample was their own class.

Recommendation: start at N$2.00 per page, with a bulk rate of N$1.50 for 20 pages or more, and a small convenience premium for same-day, in-school service. This keeps a contribution of N$1.40 per page (break-even of about 286 pages), stays close to the town price, and protects against a price war. Then test with real money: take pre-orders for a week at the chosen prices and count how many pages are actually paid for. The stated average of N$3.80 should not be used as a price.

3. Design a two-week research plan costing no more than N$300 that would give the team better evidence.

Read the worked answer

Objective: find out how many pages learners and teachers would actually buy, at what price, and from where.

1. Sample (Days 1-2). Select 100 learners by picking 10 learners from each of 10 randomly chosen classes across grades, plus 10 teachers. This is far more representative than one class. Record grade and whether they already print.

2. Questionnaire (Days 3-4), no more than six questions:

  • How many pages have you printed in the last month?
  • Where did you print them, and what did you pay per page?
  • What do you print most (notes, past papers, photos, CVs)?
  • Would you use a school service? (Yes / No / Not sure)
  • What is the most you would pay per page: N$1, N$1.50, N$2, N$3, or I would not use it?
  • How many pages would you buy in a normal month?

Avoid leading wording such as "Don't you agree...".

3. Competitor check (Day 5). Visit the two town shops and record their prices, waiting time and opening hours; photograph their price list if allowed.

4. Real test (Days 6-10). Sell pre-orders for one week at N$2.00 per page and N$1.50 for 20+ pages. Count actual pages paid for, not promises. This is the strongest evidence.

5. Analysis (Days 11-12). Tally responses in a simple table; compare stated demand with the pre-order results; calculate contribution and break-even at each price.

Budget: photocopying 100 questionnaires at about N$0.60 a page = N$60; printing a price poster and order forms = N$60; airtime/WhatsApp reminders = N$50; thank-you sweets for respondents = N$40; reserve N$90 for photocopying the final order forms. Total = N$300.

Report the pre-order result, not only the survey percentages, to the school.