Date Posted:12:51:08 01/27/05 Thu Author: PECAS Subject: Re: Printing costs In reply to:
Mike K.
's message, "Printing costs" on 03:03:48 01/27/05 Thu
>Currently, UBF members are charged $9.00 quarterly
>for each Daily Bread. That is one page for each day
>for three months plus some introductory pages for a
>total of 95 pages. If printing costs are five cents
>per page that is $4.75. Further costs include binding
>the booklet and shipping. I estimate that binding and
>shipping should not cost more than $2.25 per book.
>Tht leaves $2.00 per book left over.
>
>I want to give you a comparison:
>
rel=nofollow target=_blank >href="http://www.christianbook.com/Christian/Books/prod
>uct?item_no=01573&event=1034SPF"> A daily devotional
>for a year
>Cost: $5, they charge you $1.70 for shipping if you
>can wait for a week...
>
>And consider tht DB isn't NEARLY as nicely layouted
>(no gloss color cover for instance, that makes up for
>a BUNCH in production costs!), is smaller (size costs
>money, you know...), has less pages (95 pages vs. 365
>pages?), then I would assume DB production cost to be
>anywhere between $.50 and $1.
>Actually, you look at the size of DB, you can xerox 2
>pages on 1, and you end up with 45 xerox copies plus a
>softback.
>Given the quantity, it should be easy to get 3 Cent
>copies, so even IF you make xeroxes, which is probably
>the most costly alternative, you COULD get the job
>done below $2 total.
>Given that they don't ship each DB to your home, but
>load up a bunch of 20 or so at your local chapter,
>shipping costs per piece should be WAY below $2 per
>piece, I think $.50 would be more appropriate. I can
>send you 50 booklets of the size of DB for around $20,
>so I assume...
>
>And if we consider that they print large quantities
>and use good logistics (who wouldn't optimize
>profits?), I fathom the production and shipping costs
>per DB are below $1.50.
>That would leave $7.50, or 500% as a profit margin.
>Not bad...
I was underestimating the profits of UBF to give them the benefit of the doubt. My estimation of $2.00 per page is on the low end. Based on Mike's calculations, of $7.50 profit on each Daily Bread multiplied by my estimate of 800 Daily Breads distributed to the US and Canada per quarter, that is a profit of $6,000 per quarter or $24,000 per year. My low estimate was $6,400 per year. That is a good profit for such a small book with now pictures, color, or gloss.
