Build a profit-and-loss estimate for a book acquisition
A title P&L that tests the advance, print run, pricing, and royalties to show the break-even point and whether an offer makes sense.
The prompt
Help me build a profit-and-loss estimate for a book we are thinking of acquiring.
Formats and list prices: [hardcover / paperback / ebook / audio - with prices]
Sales forecast by format: [UNITS for year one and lifetime, based on comps or our data]
Average discount to retailers and wholesalers: [e.g. "48% blended"]
Returns rate assumption: [e.g. "25% on print"]
Unit production cost: [printing, paper, binding per copy, by print run size]
Plant and one-off costs: [editing, design, typesetting, proofreading, permissions, audio production]
Royalty rates in the proposed deal: [e.g. hardcover 10%/12.5%/15% escalators on list, ebook 25% of net receipts]
Proposed advance: [AMOUNT and payment schedule]
Marketing budget and overhead allocation: [AMOUNTS or % of revenue]
Calculate:
1. Net revenue per format after discounts and returns.
2. Cost of goods, royalties earned, and whether and when the advance earns out.
3. Gross margin and contribution after marketing and overhead.
4. Break-even units, and the maximum advance that still meets our target margin of [TARGET %].
5. Scenarios: low / expected / high sales, and a different first print run.
Return a P&L table by format, the scenario comparison, and a short note to the acquisitions meeting: the offer I can justify, the key assumptions, and the biggest risk.
Show every formula. Use only my inputs; label any assumption you add as [ASSUMPTION - CONFIRM]. Have finance review before making an offer.
Highlighted [brackets] are blanks to replace with your own details.
Fill in the blanks and use this promptMore Finance & Accounting prompts
What to fill in
- hardcover / paperback / ebook / audio - with prices
- UNITS for year one and lifetime, based on comps or our data
- e.g. "48% blended"
- e.g. "25% on print"
- printing, paper, binding per copy, by print run size
- AMOUNT and payment schedule
- AMOUNTS or % of revenue
- TARGET %
- ASSUMPTION - CONFIRM
How this prompt is built
This prompt follows the Few-Shot structure (Few-shot prompting). A few-shot prompt includes one or more worked examples of the input and the output you want, so the model can copy the pattern instead of guessing it.
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