Which way to look at it?

[Cassel]

Today, i met someone from a famous tourist attraction in the region. I wanted to propose a project of a souvenir scrapbook, half full of pictures of the site, with infos, and half blank for the visitors to include their own photos, notes and memorablia from the site. The director seems interested in the idea and wants to set another meeting with marketing team and other members of the management.

Here is my question to you. Which way should i approach that "sale"? I have a few options that come to mind right now:

1- charge a flat fee (ex: $35 per page), and he will get the files and manage the printing and the sale on site
2- charge a flat fee (ex: $20 par page), and he will get the files and manage the printing and the sale on site BUT also ask for a % of the sales
3- i manage the creation of the pages, AND the printing (i know where to go already so that is not a problem), and sell him the whole batch printed, with a % markup (if he wants more printing later, i would repeat the procedure)

So far, i do not have specific info on the specs, but i can estimate a book of 50 pages or so, sold at about 1000 copies. I think it could be sold in the souvenir shop for $20 without any problem. From previous projects made of similar nature, the printing could be about $8.50 per book for those specs (would be less for more printing, of course). Another detail is that i would have to do everything from scratch: papers, embellishements, etc. to match the site, of have pics, textures taken right from the site too.

Any idea? Ideas of ways to make a proposal? What are the pros and cons of different ways? any idea of ballpark figures i could play with? I am kind of excited because that project would be going on for almost a year for a possible release next spring only.

Anxiously waiting food for thought.

[mcardall]

I would do some research. Have you googled it? I am sure someone else out there has been through this. Maybe they blogged about it!

Personally, I would go in there and give them a design fee cost, plus a % sales. If they balk at that, then offer the book on consignment. You would be in charge of going in and doing the inventory and you get a % & they get a %. A lot of boutiques and gift shops do that with cards & one-of-a-kind items that they don't know if they will sell.

[Cassel]

I am just going to think outloud here. If anyone else wants to join in the thinking part, you are welcome.

I discussed this question with someone who has been doing work in marketing (for other things). Here are some pros and cons he brought up:

- asking for a flat fee to create the pages and letting the company do what they want after: they can do juwt that and end up with a bad product, which might, in the end affect my name if it is in there.

- asking for a % of sales: it is too risky as i have no control over how they sell it, or if they even do sell it (imagining they decide to give away half of the batch).

- asking for a $ per book sold: again, i have no way to know or encourage if they sell 20 or 200 or 2000, and how am i supposed to know if they sell 2000??? Maybe a contact? but still, it leaves them with all the freedom to do what they want, no matter what i want

- if i do everything myself and sell them the finished product: this way i keep control over a possibly copyrighted material (my own), and i know how miuch i make. If they pay and then turn around and decide to give them away, that is THEIR loss and not mine. If it does not sell because they price it too high, same thing. If they sell too low and loose a margin of profit, it wont affect me.

So, considering that i know where to get the product printed (i already dealt with them for a previous project) and have most of the "procedure" ironed out from pas experience, i think this would likely be the best way to go (as far as my reawsoning is concerned so far).

I have surveyed people at the office and the majority said the finished product could easily be sold for $20 piece at the souvenir shop. Now, depending on several specs and the number of copies printed, the cost per book could end up being between $4 and $10. Anyone has any ball park figure of what could be a reasonable "markup" ?

I am quite excited that a second meeting should be arranged for next week. I am planning on working on very basic samplers for the comittee.

Waiting for anyone else who wants to think outloud too!

Meredith, if you can give me an idea how i can google for that information, i would appreciate. I dont know what to even google for (key words and such).

[bellajoy]

I think any time you can keep the control in your own hands, you are better off.

My only concern for you with this project is that if the cost is $4 to $10, that doesn't leave a lot of room for any kind of profit for you. The shop that will be purchasing from you will probably want to "keystone" the price, so if you sell it to them for $10, they will likely want to sell it for $20. If you sell it to them for $10, will you be making anything?

[AliSarah]

Minimum acceptable markup in the retail market is 100%... But, I think depending on how large and well known your landmark is, you might be underselling the cost of your book... If I want a disney sweater, I can get it online for $20... But, if I'm at the park, I'm going to pay between $35-$40 for the same sweater or for a sweater that can't be purchased outside the park... I think after all the work and hassle of selling the item, you should charge the landmark a mark up of 50-100% of your costs, and let them mark it up again, another 100%, lol... The price to the customer will probably be closer to $30... which is pretty affordable I think for people who don't scrapbook, or for people who want pictures of the landmark that don't include inclement weather, or fellow park visitors obstructing the view...

Just my 2cents...

Huggles!!
~Sarah~

[Cassel]

Char and Sarah, thanks for your input. I am more and more going for that one option and i will definitly consider that % markup. I had no idea how much of a markup was used in the business so it gives me a starting point to discuss, think and plan.