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Product Mix & Pricing Analysis

Sample Artist
Yellow cells indicate variables - designed for tweaking
Gray cells indicate values computed from other parts of the workbook - don't manually edit these
Potential product offerings

Product Description Price Margin ($) Margin (%)

10 tracks,lossless option, PDF artwork, wallpapers,


1 Digital only $8.99 $6.68 74.3%
live or acoustic tracks <-------------The artist has entered the products and descriptions
2 Standard CD Standard CD $11.99 $6.45 53.8% of the items they want to sell, as well as the price they w

3 Hard-cover CD Hard cover Digipack available only on website $15.99 $8.55 53.5%

4 Vinyl Gatefold, 180g, Single vinyl, no booklet $24.99 $12.04 48.2%


<------------ The margin calculation is generated from the second tab

5 Hardcover CD + vinyl Combo $36.99 $16.90 45.7% <------------ Only the cells in yellow are adjusted by the artist.
Hardcover CD, Vinyl, and 12 high-quality prints of
6 Limited Edition Emily's artwork, one of which is signed by the band - $64.99 $26.13 40.2%
limit 500

7 $0.00 $0.00 0.0%

8 $0.00 $0.00 0.0%

Financial projection based on product mix variations


Models the margin and consumer selection effects of offering different product sets together

Base scenario (all products offered) Global variables


Includes: 1,2,3,4,5,6 Base volume
"figures per" amount
Projected sales mix by product (%) Artist take
% #
1 Digital only 46% 459 Sales per 1 units $19.19 <------------ The artist has entered in the % of sales they assume they
2 Standard CD 17% 170 Margin ($) per 1 units $9.90 In this example, we see that the artist expects 46% of sa
3 Hard-cover CD 16% 160 Margin (%) 51.6%
4 Vinyl 5% 53
5 Hardcover CD + vinyl 3% 31 Total sales $19,111
6 Limited Edition 12% 123 Total margin ($) $9,864
7 0% 0
8 0% 0 Artist take $9,864 <------------ Based on the information provided, this document forcas
100% 996 $9k on sales of 996 units across all product offerings

Required sales volume 996


---------The artist has entered the products and descriptions
of the items they want to sell, as well as the price they want to sell them at.

The margin calculation is generated from the second tab in this worksheet, called "Margin Calculation"

Only the cells in yellow are adjusted by the artist.

1,000
1
100%

The artist has entered in the % of sales they assume they will see from each product
In this example, we see that the artist expects 46% of sales to come from digital only.

$3,626 Total TS revenue

Based on the information provided, this document forcasts an artist's take of over
$9k on sales of 996 units across all product offerings
Product margin calculations (per unit)

Product 1 2 3 4 5 6 7 8

Name Digital … Standard… Hard-cov… Vinyl Hardcove… Limited … <------------


Price $8.99 $11.99 $15.99 $24.99 $36.99 $64.99 $0.00 $0.00 <------------

Digital bundle size (MB) 325 325 325 325 325 325 drives bandwidth cost
Includes physical ('y' or 'n') n y y y y y n n determines taxability, if you are using a third pa
% Cali & NY orders of total 10% 10% 10% 10% 10% 10% 10% 10% determines % of sales to be taxed (if taxable)

Bandwidth $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.00 $0.00 delivery of digital download (some third party pa
Pymt processor fees $0.50 $0.56 $0.65 $0.85 $1.11 $1.73 $0.00 $0.00 processing fees for third party partners (such as
Sales tax $0.00 $0.10 $0.13 $0.20 $0.30 $0.52 $0.00 $0.00 applies to physical goods sold if using a third pa
ttl pass-through costs $0.64 $0.81 $0.93 $1.20 $1.56 $2.40 $0.00 $0.00

Gross Revenue minus pass-through $8.35 $11.18 $15.06 $23.79 $35.43 $62.59 $0.00 $0.00

20% Service fee $1.67 $2.24 $3.01 $4.76 $7.09 $12.52 $0.00 $0.00
### Potential service fee paid to an artist service com

Physical COGS
COGS: Digital <-------------
COGS: CD $2.50 $3.50 $3.50 $3.50
COGS: Vinyl $7.00 $7.95 $13.45
COGS: Shirt
COGS: Mechanical Royalty <-------------
COGS: Overhead <-------------
COGS: Limited Edition Prints $7.00 <-------------
COGS: Other
ttl physical COGS $0.00 $2.50 $3.50 $7.00 $11.45 $23.95 $0.00 $0.00

ttl marginal cost $2.31 $5.54 $7.44 $12.95 $20.09 $38.86 $0.00 $0.00

Product margin ($) $6.68 $6.45 $8.55 $12.04 $16.90 $26.13 $0.00 $0.00 Artist's take per unit
Product margin (%) 74.3% 53.8% 53.5% 48.2% 45.7% 40.2% 0.0% 0.0%
###

Constants
Bandwidth (per GB) $0.45
Pymt processor (per transaction charge) $0.30
Pymt processor (% of sale) 2.20%
CA sales tax (approximate) 8.00%
Potential service fee (%) 20.00%

1 min of music = 2.3MB (320kbps MP3); 7MB FLAC


~10MB/MP3track; 30MB/flactrack
4.5 min song
Data here is pulled from the Product-Pricing sheet
Data here is pulled from the Product-Pricing sheet

drives bandwidth cost


determines taxability, if you are using a third party partner
determines % of sales to be taxed (if taxable)

delivery of digital download (some third party partners charge for Bandwidth usage)
processing fees for third party partners (such as Topspin, Nimbit, etc)
applies to physical goods sold if using a third party option

Potential service fee paid to an artist service company

Cost of goods sold are entered here (raw material costs)

If you have to pay royalties on a cover song, that figure would appear here
Known shipping costs to a fulfillment center could be entered here
Other items (such as limited edition posters) could go here

Artist's take per unit

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