| Sample Cookbook Production Quote 3 Financial Analysis (CDN$)
Cookbook 3: softcover, 1-color interior, 96 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 3,000 books, your total potential profit is $33,638.
- For sales of 2,000 books, your total potential profit is $20,086.
- For sales of 1,000 books, your total potential profit is $6,663.
Quantity |
|
1,000 |
2,000 |
3,000 |
|
% direct to consumer |
65% |
650 |
1,300 |
1,950 |
|
% to retail stores |
25% |
250 |
500 |
750 |
|
% to wholesalers |
10% |
100 |
200 |
300 |
|
|
|
|
|
|
Unit cost |
|
$ 7.66 |
$ 4.28 |
$ 3.11 |
|
|
|
|
|
|
Suggested selling price |
|
|
|
|
|
Full retail (direct to consumer) |
16.95 |
16.95 |
16.95 |
|
% discount to retailers |
40% |
10.17 |
10.17 |
10.17 |
|
% discount to wholesalers |
55% |
7.63 |
7.63 |
7.63 |
|
|
|
|
|
|
Total gross revenues |
|
14,323 |
28,646 |
42,968 |
|
|
|
|
|
|
Total investment |
|
7,660 |
8,560 |
9,330 |
|
|
|
|
|
|
Total profit potential |
|
6,663 |
20,086 |
33,638 |
|
|
|
|
|
|
Return on investment |
|
87% |
235% |
361% |
|
|
|
|
|
|
Breakeven quantity |
|
535 |
598 |
651 |
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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