Strategic Alliances The strategic alliance will be sought with key community partners who share the organisation’s values such as Second Floor Studios & Arts, Anthology and Nudge Community Builders. Pricing Strategy The pricing strategy must account for the unique way in which the publishing industry prices its goods for retail; via a predetermined cover price (see Appendix B). ’Discounts’ are then given down the supply chain to those involved with bringing the product to market. As well as considering these parameters, the price of the publication must cover company overheads and production costs, including an extra 10% of cost price to cover the freely distributed copies, and a further 10% to cover the 10 artist’s copies. (20% in total). The Cover Price is set at £100. This is very expensive, (although not unheard of), for a magazine, but not for an artists edition, book or print. As the product straddles those marketplaces so does the price-point. Comparably priced artists’ books are available at retailers such as at Antenne and ArtData and much higher prices for editions, prints and multiples can be seen at Tate Online Shop and Fine Art Multiple. The price is excellent value, offering not one but 10 works of art for £100. Costings The production price is £16.50 per unit (see below): Paper (GF Smith) 9.60 Print (Reproart) 4.15 Total materials 13.75 20 % Free copies Production Cost 2.75 Total Production Cost 16.50 (per unit)
The wholesale price is £50 per unit (see below): Total Production Cost 16.50 203% Mark-up 33.50 Total Wholesale Price 50.00 (per unit)
This is a high percentage mark-up, on 80 units sold that equates to £2,600 after production cost to pay for all other business overheads per issue. 36