• My Life in Acronyms (a.k.a., MLA)

Acquisitions and Sales | January 24, 2013

Chris Hernandez

This month we take a look at industry jargon used to assess potential acquisitions.

P&L – profit and loss statement

ROI – return on investment

Op Profit (Operating Profit) – a measure of a project’s potential profitability after all its costs are considered

Gross Sales – the sales made before factoring in any returns

Returns – the dollar value of any returns

Net Sales – the total sales (equals the gross sales minus value of any returns)

Unit Cost – the actual amount it costs to produce one book (or unit)

PPB (Paper, Print, Binding) – the cost of producing the desired number of books (equals the unit cost times the net units sold)

Royalty – the percentage of project’s income that will be earned by author/illustrator. It can be based on list or retail price, and thus equals the royalty rate times the price times the net units sold. Or, it can be based on net price, and thus equals the royalty rate times the net dollars received.