Working out Merchandise projections

[RockLinks]

Hi guys,

Thanks for taking the time to read my post. I have a query that i would like some help with. I am putting together a financial plan for an Event that will be going on tour next year to show potential investors. Obviously working out ticket sales revenue is fairly straight forward but we will also be having merchandise as a potential revenue stream. Is there away we can build Merchandise revenue into the plan?

Thanks

Craig

[Mister B]

Without having any historical data it's very hard to get right, the only way to do it is to forecast according to S.W.A.G. (Scientific Wild Arsed Guess:))

Joking aside, the best way of doing it is to put a financial value on what you can reallistically expect to take. You can base this value through a combination of industry data, internal knowledge and of course SWAG.

Split this value down into parts according to how many parts there are, (parts-merchandise,) divide by sales price and that will give you a good indication of how many to order.

For the first year I would be inclined to err on the side of caution and deal with suppliers who can top your stock levels up at short notice. Maybe a slightly more expensive way of purchasing but it will save you sitting on heaps of obsolete stock at the end of the season.

Mister B