Re: [AGA-mcm] TAG Costs

["S. Hieber" <shieber@yahoo.com>]

Good question, Erik. Questions are exactly what predictions
should get.

The answer to your question is, "Nope." I should have said
*gross* cost. It doesn't count revenues, it doesn't include
any allocations.

If you subtract the current rate of ad revenues from the
gross TAG costs, then the unit figure is $2.70 and the
average figure for fulfilling a subscription is $10.75.

Don't let the number of decimal places fool you. These are
predictions. As Galbaith said, "Economists make
predictions, not becasue they know, but becasue they
asked." I'm not an economist; I make predictins even when
not asked. ;-) 

This probably underestimates foreign mailing costs; we
don't have an updated figure yet for that for the bigger
TAG. However, domestic mailing increased 31% with the
bigger TAG. Foreign mailing won't necessarily track that.

Btw, as of these calculations, factoring in the current
rate of ad revs, the bigger TAG costs AGA about 20% more
than the old TAG. This is higher than I previously
estimated because  1) ad revs, which are the same amount in
both cases, are a higher percentage of the smaller TAG
figure -- i.e., costs got bigger but the ad revs do not. 
And 2) because we went over a weight threshold so that
mailing went up more than I estimated several months ago.

Once again, we can see how important ad revs are to AGA and
are part of the reason why AGA is running in the black
after a few years that seemed almost pinkish, not actually
red.

Next question?
sh
--- Erik Olson <erik@thekrib.com> wrote:

> Is that number adjusted for advertising revenue?
> 
> On Thu, 2 Jun 2005, S. Hieber wrote:
> 
> > Correction -- I forgot to include the Layout & Editing
> > costs. So the unit cost is $4.08 and fullfilling a
> single
> > subscription for one year costs an average of $16.32.
> >
> >
> > ********************
> > Just Fyi, the last time I worked up the numbers (which
> was
> > about 15 minutes ago, based on TAG 18-2), TAG is
> costing
> > AGA a little more than $3.60 per unit -- which means
> that @
> > 1200 copies per issue per year, fullfilling a single
> > subscription for one year costs an average of $14.32.
> >
> > sh
> > _______________________________________________
> > AGA-mcm mailing list
> > AGA-mcm@thekrib.com
> > http://lists.thekrib.com/mailman/listinfo/aga-mcm
> >
> 
> -- 
> Erik Olson
> erik at thekrib dot com
> _______________________________________________
> AGA-mcm mailing list
> AGA-mcm@thekrib.com
> http://lists.thekrib.com/mailman/listinfo/aga-mcm
> 

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