| Sample Cookbook Production Quote 1 Financial Analysis (CDN$)
Cookbook 1: softcover, 1-color interior, 184 pages
Let's say that you are interested in producing a cookbook with specifications exactly like the one in our example. Based on the analysis below, we can make the following conclusions:
- For sales of 4,000 books, your total potential profit is $58,531.
- For sales of 3,000 books, your total potential profit is $41,348.
- For sales of 2,000 books, your total potential profit is $23,986.
Quantity |
|
1,000 |
2,000 |
3,000 |
4,000 |
|
% direct to consumer |
65% |
650 |
1,300 |
1,950 |
2,600 |
|
% to retail stores |
25% |
250 |
500 |
750 |
1,000 |
|
% to wholesalers |
10% |
100 |
200 |
300 |
400 |
|
|
|
|
|
|
|
Unit cost |
|
$ 12.54 |
$ 7.40 |
$ 5.61 |
$ 4.76 |
|
|
|
|
|
|
|
Suggested selling price |
|
|
|
|
|
|
Full retail (direct to consumer) |
22.95 |
22.95 |
22.95 |
22.95 |
|
% discount to retailers |
40% |
13.77 |
13.77 |
13.77 |
13.77 |
|
% discount to wholesalers |
55% |
10.33 |
10.33 |
10.33 |
10.33 |
|
|
|
|
|
|
|
Total gross revenues |
|
19,393 |
38,786 |
58,178 |
77,571 |
|
|
|
|
|
|
|
Total investment |
|
12,540 |
14,800 |
16,830 |
19,040 |
|
|
|
|
|
|
|
Total profit potential |
|
6,853 |
23,986 |
41,348 |
58,531 |
|
|
|
|
|
|
|
Return on investment |
|
55% |
162% |
246% |
307% |
|
|
|
|
|
|
|
Breakeven quantity |
|
647 |
763 |
868 |
982 |
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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