The five Ps of the lemonade stand: The importance of people

When youth run a lemonade stand, they are learning and practicing the important concepts of the five Ps of marketing. This article focuses on customers, which are the lifeblood of your lemonade stand.

A clear pitcher and glass of lemonade next to a bowl of lemons on a brown stand. On the top of the stand is a banner that reads
AI generated image.

This Michigan State University Extension article is the fifth in a series focusing on the five Ps of marketing for young entrepreneurs running their own lemonade stand. Previous articles in this series focus on determining the productthe price, the potential profit and picking the right spot. Now, it’s time to focus on perhaps the most important P of all: people.

A lemonade stand can have the best-tasting recipe, the lowest price and a great location, but without customers, none of it matters. The people who walk up to your stand, spend their money and enjoy your lemonade are the heart of your business.

Think of your neighbors and friends

The first people who will likely stop by are your neighbors, friends or family members. They’ll enjoy a cold drink and want to support you. When they like your lemonade, they might tell others, “Hey, you should check out the lemonade stand down the street — the lemonade is so good!”

Why customers matter

Your customers don’t just buy lemonade — they are the reason your stand exists. Every cup sold is a chance to brighten someone’s day with a refreshing drink and a friendly smile. Customers provide feedback, spread the word to their friends and often return for more. They can even provide ideas for new flavors or improvements.

Building good relationships

Customer service is often the heart of the hospitality industry. Happy customers are more likely to come back, and they’ll encourage others to stop by, too. Here are some ways to build these relationships:

  • Be friendly: Smile, say hello and thank every person who visits.
  • Listen: If someone suggests adding ice, offering a bigger cup or trying a new flavor, pay attention. Feedback helps your stand grow.
  • Show appreciation: A simple “thank you” or remembering a repeat customer’s favorite order or name goes a long way.

Customers as your best advertisers

When customers have a good experience, they often tell their family and friends. That means one happy customer could turn into several new ones — without you spending anything on advertising. Word-of-mouth is powerful and can be your strongest promotional strategy (look for a future article on promotion).

Learning from people

Running a lemonade stand is more than making sales — it’s about learning how to connect with people. You’ll discover how to be polite, handle questions and even solve problems. These skills will help you in school, future jobs and any other business you might start.

Customers are the lifeblood of your lemonade stand. Treat them well, listen to them and appreciate them. Because without people, it’s just a pitcher of lemonade sitting on a table.

National Lemonade Day is August 20 each year. National Lemonade Day was founded by Lisa and Michael Holthouse in 2007 to honor the way lemonade stands are a useful tool to teach children about running a business. The tagline says it all: Teaching Kids the Power of Entrepreneurship. The 2020 Youth Impact Study of National Lemonade Day highlights some of the benefits to youth who operate a lemonade stand. If you have had a successful lemonade stand, share your story and be a featured entrepreneur.

MSU Extension and Michigan 4-H Youth Development help to prepare young people for successful futures. As a result of career exploration and workforce preparation activities, thousands of Michigan youth are better equipped to make important decisions about their professional future, ready to contribute to the workforce, and able to take fiscal responsibility in their personal lives.

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