Table 5 - PBP customer profitability analysis (at the individual customer level) for the last year Auckland Universities Bookshop Christchurch Universities Bookshop Dunedin University Bookshop Hamilton University Bookshop Wellington Universities Bookshop Bookshops Direct sales PBP Paperback E-book Total Paperback E-book Total Paperback |E-book Total Paperback E-book Total Paperback E-book Total Total of e-Books Total Number of titles 12 6 5 5 12 10 Average books per title 1,500 1200 900 750 1,000 900 500 750 2,600 3800 2960 2,000 Number of books 18,000 7,200 25,200 4,500 3,000 7,500 7,000 4,500 11,500 500 2,250 2,750 18,200 11,400 29,600 76,550 12,000 38,550 Price discount 45% 10%% 45% 10% 40%% 10% 3596 109% Number of deliveries 150 100 100 10 310 570 670 Average books per delivery 120 45 70 215 University e-training visits 12 10 12 10 22 66 66 University academic visits 24 26 20 15 40 125 125 Bookstore sales visits 12 18 12 12 18 72 72 S S $ S S S $ $ S S $ $ S Average price per book 160 75 136 160 75 126 160 75 127 160 75 160 75 127 129 75 121 Sales revenue (list price) 2,880,000 540,000 3,420,000 720,000 225,000 945,000 1,120,000 337,500 1,457,500 80,000 168,750 248,750 2,912,000 855,000 3,767,000 9,838,250 900,000 10,738,250 Discounts 1,296,000 54,000 1,350,000 324,000 22,500 346,500 448,000 33,750 481,750 28,000 16,875 44,875 1,076,800 42,750 1,119,550 3,342,675 3,342,675 Net sales revenue 1,584,000 486,000 2,070,000 196,000 202,500 598,500 672,000 303 750 975,750 52,000 151,875 203,875 1.835,200 812 250 2,647.450 6,495,575 900,000 7,395,575 Technological research 0 81,000 81,000 0 33,750 33,750 50.625 50,625 0 25,312 25,312 128,250 128,250 318,937 135,000 453,937 Acquisition of titles 86,400 16,200 102,600 21,600 6,750 28,350 33,600 10,125 43,725 2 400 5,063 7,463 87,360 25,650 113,010 295,148 27,000 322,148 Editing and design 288,000 54,000 342,000 72,000 22,500 94,500 112,000 33,750 145,750 16.875 24,875 291,200 85,500 376,700 983,825 000'06 1,073,825 Printing and binding 345,600 0 345,600 86,400 86,400 134,400 134,400 9.600 9,600 349,440 0 349,440 925,440 925,440 E-book digitisation 162,000 162,000 0 67,500 67,500 0 101,250 101,250 0 50,625 50,625 0 256,500 256,500 637,875 270,000 907,875 Direct cost of books sold 720.000 313,200 1,033,200 180,000 130,500 310,500 280,000 195,750 475,750 20 000 97.875 117,875 728,000 495,900 1,223,900 3,161,225 522,000 3,683,225 Gross profit 864,000 172,800 1,036,800 216,000 72,000 288,000 392,000 108,000 500,000 32,000 54,000 86.000 1,107,200 316,350 1,423,550 3,334,350 378,000 3,712,350 Gross margin 30.0% 32.0% 30.3% 30.0% 32.0% 30.5% 35.0% 32.0% 34.3% 40.09% 32.0% 34.6% 38.0% 37.0% 37.8% 33.99% 42.0% 34.6% SD and CS expenses Paperback distribution 90,000 90,000 60,000 50,000 60,000 60,000 5,000 6,000 186,000 186,000 402,000 402,000 E-book online support 27,000 27,000 11,250 11,250 16,875 16,875 8,438 8,438 42,750 42,750 106,313 45,000 151,313 E-book academic training 0 26400 26,400 0 22000 22,000 0 26400 26,400 0 22000 22,000 0 48 400 48,400 145,200 145,200 Academic sales support 16,000 B,000 24.000 14.444 11,556 26,000 11,667 B.333 20,000 3.750 11,250 15,000 20,556 19,444 40,000 125,000 125,000 Bookshop sales support 12,000 6,000 18,000 15,000 12,000 27,000 10,500 7 500 18,000 4,500 13,500 18,000 14,000 13,000 27,000 108,000 108,000 Marketing 144,000 27,000 171,000 36,000 1,250 47,250 56,000 16.875 72,875 1.000 8.437 12,437 145,600 42,750 188 350 491,912 15,000 536,912 Author royalties 288,000 54,000 342,000 72,000 22,500 94.500 112,000 33.750 145,750 8.000 16.875 24,875 291,200 85.500 376,700 983.825 90,000 1,073,825 Total SD&CS expenses 550,000 148,400 698,400 197,444 90,556 288,000 250,167 109,733 359,900 26,250 80.500 106,750 657,356 251 844 909.200 2,362,250 180,000 2,542,250 Operating profit 314,000 24,400 338,400 18,556 -18,556 141,833 1,733 140,100 5,750 -26,500 -20,750 449,844 64,506 514,350 972,100 198,000 1,170,100 Ner Margin 10.9% 4.5% 9.9% 2.6% -8.2% 0.0% 12 7% -0.5% 9.6% 7.2% -15.7% 8.3% 15.4% 7.5% 13.7% 9.9% 22.0% 10.9%