Statement of Income
Distributor's Profit on selling the card price of $2.50
| Distributor | Price |
|
Buys Sells |
$0.50 + $0.04 GST $1.50 + $0.11 GST |
$0.54 $1.61 |
|
Profit Remitted to Government for GST |
$1.07 $0.08 |
| Retailer |
|
Buys Sells |
$1.50 + $0.11 GST $2.50 + $0.18 GST |
$1.61 $2.68 |
|
Profit Remitted to Government for GST |
$1.07 $0.08 |
This would give the distributor a markup of 214%
Let us say that the average stand in a store sells 50 cards per month
| 50 Cards X 12 months X 50 stands X .99 cents = $29,700.00 yr. |
| 50 Cards X 12 months X 100 stands X .99 cents = $59,400.00 yr. |
| 50 Cards X 12 months X 150 stands X .99 cents = $89,100.00 yr. |
|
Territories are based on 400,000 population and to get a minimal coverage. The
Distributor sites are one stand for every 3,200 people. Every territory has potential
for 150 stands. Only Christmas accounts for 63% of all sales at one third of the value. But lets be Conservative and add just one third increase for seasonal sales. |
|
150 outlets take 15 days per month to service. |
|
The success of a territory is completely dependent on the efforts of the Distributor.
The quality of the retailer and display stand location in a store are vital to success.
Only the Distributor can affect these two factors. If a territory is worked on
diligently, it would be successful. |
|
Greeting Card Stand sales vary form store to store. Sales depend on many different
factors, behavior and working habits of the individuals, location and surroundings
Customers buying power and their buying habits. |
| Gross sales are not guaranteed to any person or company because of the above-mentioned Reasons. |
Asimco Art Publishers Inc.
2001
2001
