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Rappan Athuk: Reloaded SOLD OUT by wide margin!!
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<blockquote data-quote="mmadsen" data-source="post: 2977043" data-attributes="member: 1645"><p>It's often much, much better to print 1000 if you <em>estimate</em> that 1500 will buy it, because your estimate is far from perfect.</p><p></p><p>If your margins are 10%, then printing too many copies is far, far worse than printing too few copies. On a $30 product with 10% margins, each copy too many costs you $27, while each copy too few only costs you $3 -- the profit you would have made. (If your margins are 50%, then printing too many is exactly as bad as printing too few.)</p><p></p><p>So the game is to estimate the probabilities of selling different amounts, to compute your per-unit cost of over-printing versus under-printing, and to choose your print run so that you maximize your expected profits.</p></blockquote><p></p>
[QUOTE="mmadsen, post: 2977043, member: 1645"] It's often much, much better to print 1000 if you [i]estimate[/i] that 1500 will buy it, because your estimate is far from perfect. If your margins are 10%, then printing too many copies is far, far worse than printing too few copies. On a $30 product with 10% margins, each copy too many costs you $27, while each copy too few only costs you $3 -- the profit you would have made. (If your margins are 50%, then printing too many is exactly as bad as printing too few.) So the game is to estimate the probabilities of selling different amounts, to compute your per-unit cost of over-printing versus under-printing, and to choose your print run so that you maximize your expected profits. [/QUOTE]
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Rappan Athuk: Reloaded SOLD OUT by wide margin!!
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