Results are easily rechecked by own calculations
of «TheFotoMag» is based on the elementary indices of the speed of movement of goods (sales).
You can right away download the spreadsheet. The text below explains the logic of it.
While the product picture
is not posted to the site — the product is not being sold. The product does not bring sales forecast profits every day while it is not on the site. Product freezes in the warehouse losing its original liquidity.
From unpacking the goods
in the studio, it usually takes 4 or more days to get ready-made images that can be used by a designer or group of content.
fully finished product photos with the required sizes and file names are placed in a given place of the customer’s IT system a few minutes after unpacking the goods in the studio. Considered roughly — «in one day».
With in need of updating
of 30 SKU per day, sales forecast of 2 items of each of these SKU per day, average SKU selling price of 10 USD and margin of 15% —
Every day downtime
while the site is waiting for photos from the retoucher, it brings you a minimum 90 USD loss (lost profits).
30 SKU per day
with a sales forecast of 2 pcs a day of each of these 30 SKU — 60 SKU will be sold; at a unit selling price of 10 USD and a margin of 15% — will make a profit 60x10x0.15 = 90 USD.
In the traditional way
of photo production you lose 90 USD per day while waiting for a photo or 360 USD in 4 days between unpacking goods in the studio and getting ready-made photos.
you lose one day (in reality, a few minutes) and not 4 days. The difference in lost profit is 270 USD for every 30 SKU that need to be updated per day.
If the average SKU selling price
is not 10 USD, but 12 USD — every day you lose already 324 USD.
If a daily sales forecast is 3 pcs, not 2 — then the losses will be 486 USD. If quantity of goods in need of updating is not 30, but 50 SKU per day, — then the losses will be 810 USD per day. If margin is not 15%, but 25% — then the losses will be 1350 USD per day.
The payback period
of «TheFotoMag» at 30 SKU per day in need of updating,
sales forecast 2 pcs of each of these SKU per day, average SKU selling price 10 USD and margin 15% will be 24 months.
But at 50 SKU per day in need of updating, sales forecast 3 pcs of each of these SKU per day, average SKU selling price 12 USD and margin 25% — the payback period wiil be 5 months.
made on the basis of a standard «TheFotoMag» turnkey price.
«Turnkey» means that you let us into the bare/empty room and after the time specified in the contract you get a fully working environment.
«Turnkey» price consists of the price of photo equipment (cameras, lenses, lights), the price of a PC-compatible workstation and the price of «TheFotoMag» software and equipment.
The cost of the photo equipment
and the computer workstation in this calculation is 25% or more % of the «turnkey» price.
If you provide a computer from those that you already have and your own photo equipment can be used by «TheFotoMag» — then payback period significantly decrease and will be for example 18 months instead of 24.
In addition to the figures
taken into account in this calculation you get money on sales growth.
Conversion, due to high quality background removal, grows by 9% according to Amazon and 24% according to StyleShoots.
are not compensated by the fact that downtime goods form a queue, — all these losses are constantly added up, bringing you substantial loss. «TheFotoMag» eliminates this points of hidden losses increasing at the same time conversion (sales) due to image quality.
made by us to automate the process of calculating the return on investment.
By changing the values in it, you can simulate various scenarios of payback of «TheFotoMag».