Do you know what your publication is really costing you by the time you add up your staff time, overhead, manufacturing expenses and opportunity costs?
Whether your magazine or newsletter is a promotional expense, member benefit or profit center, it’s important that you break down your publishing costs in detail to help with strategic planning and to keep track of your performance.
APE can help you separate your manufacturing and overhead costs and develop formulas for producing issues based on revenues or an annual budget. You will learn how to cost your publication by page, with your editorial, design, overhead, printing and mailing costs built in to each page cost.
Knowing your exact production costs can help you determine if it’s best to contract out all or part of your publication or bring the entire operation in-house. Your accountant or finance manager will receive a magazine budget template to help guide you in your per-issue and annual planning.
Areas covered during an APE engagement…
- Strategic goal-setting — Should your magazine break even, be profitable or be considered an expense?
- Developing your magazine’s budget
- Production cost formulas (manufacturing vs. overhead)
- Calculating manufacturing expenses
- Calculating and applying overhead
- Postage tipping points
- In-house or contract production?