(fa)All-Millennium Pro Football Team MusicCard MATH#2
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1,000,000 cards distributed
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Model based on Certain Assumptions (listed below)
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assume 30% activated
300,000
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75% buy through of 3 cd's= 225,000*3
675,000 cd's, 225,000 shipments @ $4.00 per shipment
$1.00 margin cd sales, $1.00 margin shipping (25%)
Gross Revenues (gr): $7,418,250 cd sales
Gross Revenues (gr): $900,000 shipping
Costs of CD Sales: ($6,743,250)
Costs of Shipping: ($675,000)
Net Revenues $675,000 cd sales
Net Revenues $225,000 shipping sales
Total Gross Revenues $8,318,250
Total Costs of Sales ($7,418,250)
Net Revenues: $900,000.00 Sub Total
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12.5% buy through of 2 cd's= 37,500*2
75,000 cd's, 37,500 shipments @ $3.00 per shipment
$1.00 margin cd sales, $0.75margin shipping
Gross Revenues (gr): $824,250 cd sales
Gross Revenues (gr): $112,000 shipping
Costs of CD Sales: ($749,250)
Costs of Shipping: ($84,375)
Net Revenues $75,000 cd sales
Net Revenues $28,125 shipping sales
Total Gross Revenues $936,250
Total Costs of Sales ($833,625)
Net Revenues: $102,625.00 Sub Total
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12.5% buy through of 1 cd= 37,500 * 1
37,500 cd's, 37,500 shipments @ $2.00 ea
$1.00 margin cd sales, $0.50 margin shipping
Gross Revenues (gr): $412,125 cd sales
Gross Revenues (gr): $ 75,000 shipping
Costs of CD Sales: ($374,625)
Costs of Shipping: ( $56,250)
Net Revenues $37,500 cd sales
Net Revenues $18,750 shipping sales
Total Gross Revenues $487,125
Total Costs of Sales ($430,875)
Net Revenues: $56,250.00 Sub Total
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50.0% of the 75% of 3 buy throughs reload
11.25% of reloads from total distribution
112,500 reloads @ $10.00 ea
Gross Revenues $1,112,500 card sales
Profit Share Coke ($556,250)
Profit Share *NMF ($111,250)
Profit Share Cost ($667,500)
Electronic reload, therefore no additional cost
for manufacturing of card
Net Revenues $445,000.00 Sub Total
*National Music Foundation
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Revenues from advertising (hypothetical numbers)
Amount of Cards = 1,000,000
Production Cost per card= $0.25
Sale Price of Card = $0.50
Gross Revenue: $500,000
Cost of Card ($250,000)
Net Revenue Card $250,000
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Total Gross Revenues....$11,354,125
Total Gross Costs.........($9,600,250)
Total Net Revenues......$1,753,875.00
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Cost of advertising = $0.00
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No additional sales from the reloads
factored into this model
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Model also doesn't account for any "viral impact"
ie. promo card recipients telling other non-recipients
about the site and its value.
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Assumptions
only 30% card activation
only 11.25% card reload
$1.00 margin on cd's
25% margin on shipping
Card Production cost = 0.25
Card Mark-up = 1 time
Card margins = 0.25
Conservative assumptions?
Conservative numbers?
Alternative numbers and assumptions?
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