The product pricing analysis is a worksheet that we've created to help artists and managers plan out various offers for their campaigns. Based on the campaign goals, this tool will help in establishing pricing and estimating traffic and sales for your particular campaign.
This page will always contain the latest version of the product pricing analysis. Included is a locked version with only needed areas editable, as well as an unlocked version that allows you to view and edit all fields.
How To Use the Product Pricing and Forecast Analysis
The product pricing and forecast analysis is a tool that artists and managers use in planning out their campaigns. One can do the following with this tool:
- Set up potential products and their prices for offer through Topspin
- Vary projections based on consumer selection effects for various products
- Forecast campaign performance for 1 - 6 months using artist volume on various channels
This page goes through each tab to explain various inputs in the sheet as well as information to glean from them.
Enter Artist Name Here (D4): Enter the artist name here so it shows in all documents related to the campaign.
Key Takeaways: C19-> C24 provide space for you to input key takeaways from the analysis that can be summarized and sent out to artist and artist managers.
Potential Products through Topspin
For each product, there is a row associated with it (ie. Row 11). In this row, you can set values for the following fields.
- Product Name (ie C11)
- Product Description (D11)
- Product Price (H11)
The following fields are automatically calculated for you:
- Margin (I11): Based on all of your costs.
- Margin (J11): Based on your margin and price
There is also a set of fields associated with calculating the margin for the product.
- Download size (M11): Set the download size of the product. Use the download size calculator tab for help on estimating the download size.
- Includes physical (N11): Set to ‘y’ for yes or ‘n’ for no to determine if physical product is included.
- % Cali/NY orders (O11): Estimate the % of orders that you expect coming from California or New York. This will be used in calculating sales tax for these orders.
- Cost of Goods Sold (Z11-> AD11): Set the cost of goods sold for digital, CD, vinyl, merchandise, and other miscellaneous costs involved with your product.
The following fields are automatically calculated for you:
- Subtotal pass-through costs (Q11): Based on bandwidth, payment processor fees, and sales tax fees.
- Subtotal Topspin Fee (R11): Based on price and Topspin Tiered Pricing Constants (AJ20 -> AJ24).
- Subtotal – COGS (AE11): Based on all COGS (Z11 -> AD11).
- Total marginal cost (AF11): Based on bandwidth, payment processor fees, and COGS.
- Product margin: Based on product price and total marginal cost.
The following are constants across all Topspin campaigns:
- Bandwidth per GB (AJ12): Bandwidth charge from Topspin to artist
- Payment processor per transaction charge (AJ13): Fixed fee charged for each transaction through Topspin
- Payment processor % of sale charge (AJ14): Variable fee charged for each transaction through Topspin based on product price
- Sales tax (approximate): For orders in Cali and NY, Sales tax %
- Topspin Tiered Pricing (AJ20 -> AJ24): Based on Topspin contract, tiered pricing rates used in calculating Topspin Fee (R11).
Financial projections based on product mix variations
Using estimates for past sales and knowledge of your fanbase, you can estimate the projected sales mix for each of your products. This will be helpful in determining total estimated sales and margin.
Only one section here is editable:
- Product % (D31 -> D39): Use these cells to estimate the % of orders that you expect to receive for each product relative to your total order numbers.
- Forecast volume (N27): Based on 6-month expected forecast for units sold under normal conditions.
- “Figures per” amount (N28): Allows you to set the expected sales and margin based on a set number of units you expect to sell.
The following are automatically calculated:
- Sales per x units (H31): Sales for a set number of units, where x is the "figures per" amount in N28.
- Margin per x unit (H32): Margin for a set number of units, where x is the "figures per" amount in N28.
- Total sales (H35): Total sales for a number of units based on forecast volume (N27).
- Total margin (H36): Total margin for a number of units based on forecast volume (N28).
Campaign ROI Forecast
This section allows you to calculate expected forecasts based on the artist volume on various channels and the average revenue and margin determined by your product mix and pricing analysis.
Average earnings: Average revenue and margin are determined by the sales and margin per 1 unit expected.
Artist Channel Volume: For your artist, you can input values foe the channel volume for each of the channels your artists is in:
- Email List: Number of emails on artist email list
- Traffic to primary site: Number of monthly visitors to artist’s main website
- Traffic to secondary sites: Number of monthly visitors to all other websites affiliated with artist (i.e. fan forums, artist personal blog)
- Search: Global Monthly search volume for artist name.
- Use Google Keyword Tool (https://adwords.google.com/select/KeywordToolExternal). Enter keyword as artist name and submit to obtain search volume.
- MySpace: # of friends on artist’s MySpace page
- Facebook: # of fans on artist’s Facebook fan page
- iLike: # of fans on artist’s iLike page
- Last.FM: # of listeners on aritst’s Last.FM page
- YouTube: # of subscribers to artist’s Youtube channel
- Twitter: # of followers on artist’s Twitter account
- Other: Other channel volume not accounted for in above categories
Month 1 Performance Projections
Using artist channel volume and average earnings, we automatically determine the following projections:
- New Fans Acquired
- Total Sales (# of units)
- Total Sales ($)
- Total Margin ($)
These projections are calculated for conservative, normal, and aggressive campaign conditions.
Accompanying Key Performance Indicators:
- Visit -> Sales Rate (Sales # / Visits)
- Average Revenue per Visit (Sales $ / Visits)
- Average Margin per Visit (Margin $ / Visits)
6 month projections for campaign performance are based on a historical constant ratio of month 1 to 6 month performance on a properly executed Topspin campaign.
Conversion Rate Calculations and Conversion Map
These pages show the expected conversion rates to visits, fan acquisition, and sales on various channels based on historical channel performance across all Topspin artists as well as artist tier.
Cells F4 and F5 allow you to adjust the predicted performance of your artist’s channel (whether it’s Tier 1 or Tier 3 volume) relative to a Tier 2 artist’s optimal performance. For example, an 80% next to tier 3 says that Tier 3's will convert channel interest into visits, emails and sales at 80% the rate of a typical Tier 2 artist, and an 40% next to tier 1 says that Tier 1's will convert channel interest into visits, emails, and sales at 40% of the rate of a typical tier 2 artist. These numbers can be edited based on what you believe for the artist's channel volume.
Topspin data has shown to-date that Tier 2's have the highest conversion in a campaign as they are established artists with enthusiastic followings. All conversion rates for various channels are based on the potential and passion of the following. The tier 1 and tier 3 ratios correct this behavior, as Tier 3 artists often are newcomers with small excited followings, and Tier 1 artists are major artists with a large but passive fanbase; both of these are often difficult to convert.
Download Size Calculator
Using the contents of your digital package, you can calculate the estimated size of your download. Simply fill in the following information:
- Length in minutes of audio in package
- Length in minutes of video in package
- Download formats offered for audio in package
- Download formats offered for video in package
- Number of MB images included
- Number of MB other files included
This information is used to calculate both the estimated size and associated bandwidth costs for the download package.