Re: PAM finances

[Dave Gomberg <gomberg@wcf.com>]

At 08:32 PM 9/29/1999 -0500, you wrote:
>Dave G. wrote:
>
>>Lots of questions have been raised about PAM finances, here is how I see it
>>starting out:
>>
>>Planted Aquaria Magazine operating statement
>>5.95    $ per issue             40      pages
>>Item                    Issue
>>        01/01   01/02   01/03   01/04   02/01   02/02   02/03   02/04
>>Expenses
>>Printing        5000    5000    5000    5000    5000    5000    5000    5000
>>Postage 300     300     300     350     400     450     500     550
>>Authors ($120/pg)       2400    2400    2900    2900    2900    3400
>>3400    3400
>>Manager 1000    1000    1000    1000    1000    1000    1000    1000
>>Editors 800     1000    1200    1400    1600    1800    2000    2000
>>
>>
>>
>>Revenues
>>Ads     4500    5000    5300    5500    6000    6000    6000    6000
>>Subscriber$     2550    2700    2850    3000    3300    3600    3900    4200
>>Subscribers     850     900     950     1000    1100    1200    1300    1400
>>Distributors    100     200     400     600     800     1000    1200    1200
>>
>>
>>Stock purchase  2350    1800    1850    1550    800     1050    800     550
>>
>------------------<snipped>--------------------------------------------------
>
>Dave,
>Let me see if I understand this.  Am I correct that without stock
>purchases, you would be -1500 in the red after the first issue, -2400 in
>the red after the second issue, etc. etc, but would stop the increase in
>loss by around issue #6, and would be only -1350 in the red by issue 8?

Gee, I can't find a 1500 anywhere so I have no idea what you are looking at
or how you are interpreting it.  Based on the numbers above we bleed cash
for about 8 issues.    We lose $2,350 on the first issue and a further
$1,800 on the second.

>
>However, with stock purchase, you would be 850 in the black after the first
>issue, 1750 in the black after the second issue, etc. etc., until by issue
>8 you would be 9400 in the black.  Am I calculating things right?

No, see losses above.   The stock purchases provide cash to cover the
losses.   Speaking precisely, they are not income, they are capital.   But
they cover expenses.

>Also, What are Subscriber$ and what are Subscribers?

Subscribers is NUMBER of subscribers, subscribers$ is income from subscribers.

>What is the cause of the increasing expense for authors at $120/pg?  Do the
>number of pages devoted to authors go from 20 up to 24 to 28, or does the
>amount paid per page go up?

Increasing number of editorial pages.  I am willing to sustain further
losses to make the mag better right away.  But if my board felt very
differently about this issue I would be flexible.

>Does the income from distributors go up from 100 to 1200 because, after 8
>issues, they are distributing 12 times as many issues as they were at the
>biginning?

That's it.   In the beginning they have no contacts, etc.   After two
years, they have established themselves (just like our plants!).

>Paul Krombholz, central Mississippi, where last night we had the first rain
>in three weeks.  

Dave, in sunny! SF where we are sweltering in near 80 temperatures.
--
Dave Gomberg, San Francisco            mailto:gomberg@wcf.com
For low cost CO2 systems that work:  http://www.wcf.com/co2iron 
Tropica MasterGrow in the USA:      http://www.wcf.com/tropica 
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