| Sample Cookbook Production Quote 2 Financial Analysis (CDN$)
Cookbook 2: hardcover, 2-color interior with color inserts, 164 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 6,000 books, your total potential profit is $68,615
- For sales of 5,000 books, your total potential profit is $54,579
- For sales of 4,000 books, your total potential profit is $40,423
- For sales of 3,000 books, your total potential profit is $26,387
Quantity |
|
3,000 |
4,000 |
5,000 |
6,000 |
|
% direct to consumer |
50% |
1,500 |
2,000 |
2,500 |
3,000 |
|
% to retail stores |
40% |
1,200 |
1,600 |
2,000 |
2,400 |
|
% to wholesalers |
10% |
300 |
400 |
500 |
600 |
|
|
|
|
|
|
|
Unit cost |
|
$ 10.79 |
$ 9.48 |
$ 8.67 |
$ 8.15 |
|
|
|
|
|
|
|
Suggested selling price |
|
|
|
|
|
|
Full retail (direct to consumer) |
24.95 |
24.95 |
24.95 |
24.95 |
|
% discount to retailers |
40% |
14.97 |
14.97 |
14.97 |
14.97 |
|
% discount to wholesalers |
55% |
11.23 |
11.23 |
11.23 |
11.23 |
|
|
|
|
|
|
|
Total gross revenues |
|
58,757 |
78,343 |
97,929 |
117,515 |
|
|
|
|
|
|
|
Total investment |
|
32,370 |
37,920 |
43,350 |
48,900 |
|
|
|
|
|
|
|
Total profit potential |
|
26,387 |
40,423 |
54,579 |
68,615 |
|
|
|
|
|
|
|
Return on investment |
|
82% |
107% |
126% |
140% |
|
|
|
|
|
|
|
Breakeven quantity |
|
1,653 |
1,936 |
2,213 |
2,497 |
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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