(fa) All-Millennium Pro Football Team MusicCard MATH
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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 20% activated
200,000
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75% buy through of 3 cd's= 150,000*3
450,000 cd's, 150,000 shipments @ $4.00 per shipment
$1.00 margin cd sales, $1.00 margin shipping (25%)
Gross Revenues (gr): $4,945,500 cd sales
Gross Revenues (gr): $600,000 shipping
Costs of CD Sales: ($4,495,500)
Costs of Shipping: ($450,000)
Net Revenues $500,000 cd sales
Net Revenues $150,000 shipping sales
Total Gross Revenues $5,545,500
Total Costs of Sales ($4,945,500)
Net Revenues: $500,000.00 Sub Total
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12.5% buy through of 2 cd's= 25,000*2
50,000 cd's, 25,000 shipments @ $3.00 per shipment
$1.00 margin cd sales, $0.75margin shipping
Gross Revenues (gr): $549,500 cd sales
Gross Revenues (gr): $ 75,000 shipping
Costs of CD Sales: ($499,500)
Costs of Shipping: ($56,250)
Net Revenues $50,000 cd sales
Net Revenues $18,750 shipping sales
Total Gross Revenues $624,500
Total Costs of Sales ($555,750)
Net Revenues: $68,750.00 Sub Total
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12.5% buy through of 1 cd= 25,000 * 1
25,000 cd's, 25,000 shipments @ $2.00 ea
$1.00 margin cd sales, $0.50 margin shipping
Gross Revenues (gr): $549,500 cd sales
Gross Revenues (gr): $ 50,000 shipping
Costs of CD Sales: ($499,500)
Costs of Shipping: ( $37,500)
Net Revenues $50,000 cd sales
Net Revenues $12,500 shipping sales
Total Gross Revenues $599,500
Total Costs of Sales ($537,000)
Net Revenues: $62,500.00 Sub Total
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50.0% of the 75% of 3 buy throughs reload
12.5% of reloads from total distribution
75,000 reloads @ $10.00 ea
Gross Revenues $750,000 card sales
Profit Share Coke ($350,000)
Profit Share *NMF ($35,000)
Profit Share Cost ($385,000)
Electronic reload, therefore no additional cost
for manufacturing of card
Net Revenues $365,000.00 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 $8,019,500
Total Gross Costs ($6,673,250)
Total Net Revenues $1,346,250.00
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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 20% card activation
only 7.5% 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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