Cost of sales, margins and printing on canvas

Started Jan 21, 2007 | Discussions thread
OP tr0910 Regular Member • Posts: 145
Thanks all (see attached pricing template)

Thanks all for your ideas.

  • I agree that using a strict cost of sales percentage is simplistic.

  • I agree that material cost is becoming irrelevant

  • I agree that it is bottom line margin at the end of the year that really counts.

I see the consensus is that you cannot expect to get the same low cost of sales percentage from enlargements on canvas as you get from an 8x10 print. This flies in the face of the theory that photographers make their best money from enlargements. The real profitability key is increasing average order size.

I've attached an Excel Spreadsheet you can download from here for calculating your own studio profitability. It adds in labor, sales, overhead, etc.
Access via Google Spreadsheets to view
http://spreadsheets.google.com/pub?key=pOuq-rbM2OfYp4xs_TnYLHA
Download so you can edit it with Microsoft Excel
http://www.mediamax.com/tr0910/Hosted/2007%20Pricing%20Strategy5.xls

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