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Re: PAM finances
Hi Dave --
In addition to the questions I asked yesterday, I have two others, if you
please.
1) You said that the author pages increase starting with the 3rd time
period. If that is so, why does the printing cost not also go up?
2) The revenue per subscriber works out to be $3 per subscriber, yet you say
that the price is $5.95 per issue. Where goes the other $2.95?
Please answer these questions so I can finish the spreadsheet.
Thanks.
Lass
----- Original Message -----
From: Dave Gomberg <gomberg@wcf.com>
To: Paul Krombholz <krombhol@teclink.net>; <aga-mcm@thekrib.com>
Sent: Wednesday, September 29, 1999 9:49 PM
Subject: Re: PAM finances
> 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
> -----------------------------------------------------------------
>