Planning a party can be pretty hard work. Especially if there is a limit to the amount of money you can spend on it. This is the problem that my group encountered. How can we find a way to plan a party spending only the $9,365 we have? My group and I started off thinking of what would make a better party, music, location, or food. This time we did not have to come up with the alternatives ourselves because they were on a sheet we were given in class. We realized that they were all important for a party so we started off with the first one on the list, music. Some of our group members wanted hard rock music while others wanted rap music but we didn’t want to spend too much money on the music and not have enough for another area. We made criteria for coming up with our final decision. The criteria was quality, entertaining, unforgettable, and within price range. We either gave the alternatives in this category a + or a – based on whether it fit the category or not. The same went for the location and food category. We had to put aside preferences aside and compromise on what fit our criteria the best and what wouldn’t take money away from spending on another category. Our final decisions were Good Vibrations for the music, The Hilton Hotel for the location, and the $3000 catered menu for the food.
During this planning process, we made many trade offs for all the categories of expenditures. A trade off is giving up some of one thing to get more of another. For example, in the music category, we gave up a really good live band (Our Rage), which was $5000 and settled for Good Vibrations ($2000) so that we would have more money to spend for a good location. We basically gave up better music for a better location but did not give up all of the music because we still spent quite a bit on it, just not too much. We also had many opportunity costs. Opportunity costs are when we choose the next best alternative. For example, for the location we decided on the Hilton hotel because though we wanted The Knob Hill Country Club, it was too expensive and would take away money to spend on the food. We gave up Knob Hill Country Club and kept Hilton Hotel in favor of saving money so the Knob Hill Country Club was the opportunity cost. Also, on the music category, we gave up the idea of having a live band so that we could use good vibrations instead and save money for another category so the live band was our opportunity cost in this category. Lastly, in the food category, we chose the $3000 catered choice instead of the package deal so the package deal was our opportunity cost of this decision. We made all our decisions by following the steps of the PACED decision- making model.