Interpretation of Publishing Accounts (sales and supply volume)

[Jules-and-Boo]

Anyone have a spare ten mins to look at a very basic sales budget please?

My friend has an interview and we are looking at a set of numbers he has been sent. Current year forecast vs next year budget.

It's all pretty basic and a lot of information missing but we dont' know if we're missing something obvious as the supply volume is way higher than the sales volume. i.e they are over ordering. It just seems too obvious to be a trick question.

I've attached the file if anyone can look?

I can't see any reason but as I don't know much about a publishing house, I may just not know something.

Thanks

Jules

[TheCat]

I'm no publishing expert, but have a lot of experience in analysing various types of businesses..So this may be corrected by someone with more specific sector knowledge!!....

As I understand publishers will usually print many more copies of books/magazines than they actually sell...

I would assume the ratio of printing to sales will vary by title and the historical experiences of the publisher

As far as I know there are 3 key volume numbers to be aware of...

1)printed copies

2) sales to bookstores/newsagents retailers

3) sales to end customers

Obviously figure 1 is the one you need to determine variable cost base.

Figures 2 and 3 will combine in a complicated fashion to give you revenue. Figure 2 will be also usually be larger than figure 3...and some retailers have right of return of unsold copies. Some will not.

Hope that helps....

[Jules-and-Boo]

Thanks. Very helpful. Wondered that but still seems a high volume set aside for wastage....