| Sample Kid's Story Book Production Quote 3 Financial Analysis (US$)
Kid's Story Book 3: hardcover, full color, 32 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 $14,472.
- For sales of 1,000 books, your total potential profit is $7,588.
Quantity |
|
1,000 |
1,500 |
|
% direct to consumer |
65% |
650 |
975 |
|
% to retail stores |
25% |
250 |
375 |
|
% to wholesalers |
10% |
100 |
150 |
|
|
|
|
|
Unit cost |
|
$7.58 |
$5.52 |
|
|
|
|
|
Suggested selling price |
|
|
|
|
Full retail (direct to consumer) |
17.95 |
17.95 |
|
% discount to retailers |
40% |
10.77 |
10.77 |
|
% discount to wholesalers |
55% |
8.08 |
8.08 |
|
|
|
|
|
Total gross revenues |
|
15,168 |
22,752 |
|
|
|
|
|
Total investment |
|
7,580 |
8,280 |
|
|
|
|
|
Total profit potential |
|
7,588 |
14,472 |
|
|
|
|
|
Return on investment |
|
100% |
175% |
|
|
|
|
|
Breakeven quantity |
|
500 |
546 |
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.
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