Before the production of promotional products for the artist we had to be aware of how much would it cost. Therefore, we had to build up the budget plan in order to calculate the possible cost of producing the promotional items for Annie who is our chosen singer. Promotional items are really important for every artist as they help to make people aware of the artist, the concerts, also they attract people's attention and make people to be interested in the artist and this also leads to increased popularity and profit of the artist. However, the production of such items is expensive so we have to be sure that we are able to pay for producing them.
For our singer we have decided to organise the concert which is going to take place in O2 arena in London. The O2 arena is able to fit in 18,000 guests. This means we have to pay for 18,000 printed tickets. We had researched the prices for the standard ticket print. You can see them on the image below:
As we can see on the image above the price per one printed ticket is going to be £0.06. This means that for 18,000 printed tickets we need to pay £1,080 (18,000 x 0.06 = £1,080).
Our second promotional item is going to be a package for the CD. We have agreed with Maria to produce 6,000 CD copies for Annie. We have researched the price of producing full CD package and what we found out you can see on the image below:
As you can see the base cost of producing 300 full colour cardboard sleeve (2 panel) is $217,00. The price of 6,000 is $4,340 that equals £2,852.13.
Our third product is a T-shirt. We have discussed with my partner Maria the quantity of T-shirts that we want to produce and have agreed at 6,000 T-Shirts per one concert. We have found out the approximate cost of producing a T-shirt which is $6.70 per one. Then we were able to calculate the cost of producing 6,000 T-shirts which is 6,000 x $6.70 = $40,200 which is equivalent to £26,430.
We have also to rent a studio for 1 day photoshoot which will cost us £450 per a day. The studio includes also the professional lighting equipment. We also have to hire a camera as we don't have our own one and the cost of renting a camera per a day will cost us £80 including lenses. As we are doing our photoshoot in order to promote our artist we don't need to pay Annie for it, as it's in her interests to promote herself.
Final Grid.
Overall costs: The cost of production of 25 CD copies in Tesco costs 25 £. So the cost per 6000 copies is going to be £1920. The price of printing 6000 CD covers will cost us £2852. So the overall cost of CD production is £4502
The cost of one T-shirt is £4.40. The overall cost of 6000 T-shirts is £26400.
The cost of one ticket is 60p. Therefore, 18000x0.06=£1080.
The cost of hiring studio and equipment is going to be £530.
Overall: £32512
Profit = Revenue - Costs
Profit = £1005000 - £32512 = £972488
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