Costs Of Goods - Albums
In this section you’ll create as many albums as you either sell or are considering selling. Start by giving each album a name, then selecting an album style from the Album Database and assigning some simple costs. Configuring albums can be a bit tricky so I’ll be as descriptive as I can.
Creating a New Album or Deleting an Existing Album
Click on the “New Album” icon on the upper right hand corner to create a new album. You may create as many new albums as you like. Engagement, Guest Sign-in Books and Wedding Albums are all albums so enter the details in here.
First start off by giving your album a name. This is a name by which you can recognize it later on. This can be something as simple as Album One or Parent Album. If you have more poetic names in your pricing, use that name.
When you click on this field, you’ll be able to select an album from the Toolkit database of flush mount album styles from a variety of album companies. Look for the album company, style and size that matches the one that you use. Most likely, you’ll find your album there. If you don’t, follow these steps:
- Click on the Album Database
- You may find an album with a size and cost comparable to yours, if so, note the company and style then click back over to the Albums section
- You may also enter your album by scrolling to the bottom of the album list and...
- ...entering your album information in the blank field below the rest of the data.
- When you’re finished, click back over to the Albums section.
- For more details, select Album Database from the Help section directory above
Once you select an album, much of the data for this section will be auto-entered for you.
Price to Client
Enter the amount that you charge the client for this album.
Base Cost to You
This is the cost of the album to you with no extra pages or upgrades from the minimum (unless you choose to add extra items to the album in the Album Database). This number is entered from the Album Database and is based upon the information supplied on the binder's price list.
No. of Spreads Included w/ Base Album
Discussing how many pages are in an album is always tricky because people define a “page” differently. Instead, the term “Spread” is used since it is easier to define. Here’s a breakdown of terms we may use:
- A spread consists of two pages facing each other.
- A page is defined as one side in an album.
- An album insert has two sides to it. It is the physical board or paper inserted into the album.
- An album side is one side of the inserted board or paper.
Most album companies include 10 inserts (or two page spreads) in the base price of the album. Those 10 inserts thus translate to 20 pages. This number is auto entered into this field. If you need to change it, the field is modifiable. If the album company provides no spreads with your initial purchase, insert “0.”
This number is entered from the Album Database and is based upon the information supplied on the binder's price list.
Cost for Additional Spread (Two Pages)
This is the price for each additional two-page insert into the album. The larger the album, the higher the cost. This amount is auto-entered from the Album Database page. This number is entered from the Album Database and is based upon the information supplied on the binder's price list.
No. of Spreads Delivered to Client
Enter the number of spreads that are actually delivered to the client in the final book. If the base number of spreads is ten but you deliver 15 (30 pages total), then enter “15” in this field.
Who designs your wedding albums?
Select from the pulldown menu one of two options. If you have an in-house person doing the design, you’ll want to select the “3rd Party Outsource” option and then determine how much it costs you per spread to have your designer do the work.
How many hours does it take you to design this album?
This question will change depending upon your answer to the above question. If you do your own design, then you’ll want to enter the number of hours it takes you to design the album from start to finish including an average time spent handling changes and working with the client.
What is your cost to design each two-page spread?
How much does the company or individual who does your album design charge you to design each two page spread. If you have an in-house assistant or designer doing the work, then calculate the cost to design each two page spread based upon the amount they are paid and the time it takes for them to complete the album.
For example, if your assistant is paid $20 per hour and it takes 5 hours to design a 20 spread (40 page) album, $25 times 5 equals $125. Divide $125 by 20 to give you the amount of $6.25 to design a two-page spread.
Design Cost Per Spread
This is your cost to design each spread whether you outsource the process or handle the design on your own. This is an auto-calculated amount that is not user modifiable.
Add in additional costs for options like slip cover, upgraded cover materials etc.
Be sure to include the cost of shipping to and from the bookbinder as well as the cost to ship the album to the client if you don’t have the client come to pick it up.
Total Materials Costs
This calculation is the total cost for the album, shipping and all upgrades.
Total Design Costs
This calculation is the total of all design costs for the album.
Total Costs of Sale
This calculation is the total of all costs for you to produce this album for your client.
This is the amount of profit that you make from selling this album to the client.
This calculation results from dividing the Gross Profit by the Price to Client. This ratio is helpful when it comes to comparing one product or service to another.