The Business Model

Unit: I have mixed feelings about this, I think the unit could be either a single book or a cultural set (translation, books and training – the way that costs are largely done now). As we start to deal more in apps than in books the unit may change, though I don’t know enough about apps to know how licensing etc works.

Each book costs about $6 to produce. For each group the teacher kits cost $150 each. Culture development for students or adults should cost around $10k, and 5k for the other group.

Other Costs (non-consumables):
Marketing –
Curriculum creation –
Cultural consultants –
Photography/Design –
Conferences/Travel –

Revenue per unit:

Each group is able to have it’s own specialized package. The other two parts costs $1000 a year. Books are priced on a sliding scale ($14.95-10.95 each).

For each group the package (3 kits, 4 hours of training for up to 5 people, parent workshops, in class consulting, 50 books) costs $6-12k. Training and kits cost around $1000 for 1 teacher and slightly more for training without kits for teachers who want to share kits. Culture development for students or adults is $20k, and 10k for the other group (these groups will be able to always buy books at the lowest price and sell them again). This way groups can purchase what they need and do not need to spend money on things they don’t.

The Cycle

  1. Your know your unit costs, but you can’t afford them.
  2. You know your unit costs, and you can afford them.
We seem to be in between these to positions. SO far we’ve been able to keep going with some grants, etc. and a lot of volunteer work. The plan it to continue trending toward profitability and eventually have more employees and fewer volunteers. 
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