Sample Cookbook Production Quote 2 Financial Analysis (US$)

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 $56,345.  
  • For sales of 5,000 books, your total potential profit is $44,954.
  • For sales of 4,000 books, your total potential profit is $33,483.
  • For sales of 3,000 books, your total potential profit is $22,082.

 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 

 

 $        8.30

 $       7.29

 $        6.67

 $     6.27

 

 

 

 

 

 

 

 Suggested selling price 

 

 

 

 

 

 

 Full retail (direct to consumer) 

         19.95

        19.95

         19.95

      19.95

 

 % discount to retailers 

40%

         11.97

        11.97

         11.97

      11.97

 

 % discount to wholesalers 

55%

          8.98

          8.98

           8.98

       8.98

 

 

 

 

 

 

 

 Total gross revenues 

 

       46,982

      62,643

        78,304

    93,965

 

 

 

 

 

 

 

 Total investment 

 

       24,900

      29,160

        33,350

    37,620

 

 

 

 

 

 

 

 Total profit potential 

 

       22,082

      33,483

        44,954

    56,345

 

 

 

 

 

 

 

 Return on investment 

 

89%

115%

135%

150%

 

 

 

 

 

 

 

 Breakeven quantity 

 

         1,590

        1,862

         2,130

      2,402


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.

 

 

Back to Cookbook 2 production quote (US$)
Copyright 1995-2008, Callawind Publications Inc. All rights reserved