| Sample Children's Book Production Quote 1 Financial Analysis (US$)
Children's Book 1: softcover, full color, 24 pages
Let's say that you are interested in producing a children's book with specifications exactly like the one in our example. Based on the analysis below, we can make the following conclusions:
- For sales of 1,500 books, your total potential profit is $11,112.
- For sales of 1,000 books, your total potential profit is $5,508
Quantity |
|
1,000 |
1,500 |
|
% direct to consumer |
65% |
650 |
975 |
|
% to retail stores |
25% |
250 |
375 |
|
% to wholesalers |
10% |
100 |
150 |
|
|
|
|
|
Unit cost |
|
$6.28 |
$4.38 |
|
|
|
|
|
Suggested selling price |
|
|
|
|
Full retail (direct to consumer) |
13.95 |
13.95 |
|
% discount to retailers |
40% |
8.37 |
8.37 |
|
% discount to wholesalers |
55% |
6.28 |
6.28 |
|
|
|
|
|
Total gross revenues |
|
11,788 |
17,682 |
|
|
|
|
|
Total investment |
|
6,280 |
6,570 |
|
|
|
|
|
Total profit potential |
|
5,508 |
11,112 |
|
|
|
|
|
Return on investment |
|
88% |
169% |
|
|
|
|
|
Breakeven quantity |
|
533 |
557 |
This analysis is for illustrative purposes only. The exact sales mix will depend on your distribution and marketing approach. Actual required discounts and terms may vary among retailers and distributors.
|
