Re: [AGA SC] Membership Committee Initiatives

[Erik Olson <erik@thekrib.com>]

The other bit I was interested in comparing was the difference between 
the income as individual members vs. as a group...

Let's look at the minimums (worst-case scenarios):

#       discount        group postage   individual postage      loss
                                        (at $1 per mailing)     per member

6  10%  $12             $15             $24                     50 cents
11 20%  $44             $15             $44                     $1.36
51 40%  $408            $20 (approx)    $204                    $4.40

These numbers are, though, against the $20/member standard.  So we should 
consider that first of all some of the cuts already taken from us.  An 
individual member subscribing for a year gets 88 cents taken out by 
PayPal, and the two-year membership knocks off another buck per year (and 
three-year memberships knock off two bucks per year).

More importantly, the real question is how many of the group memberships 
would have otherwise bought individuals... I guess if it's, say, 50% new 
members, then it's not so bad, and totally comparable with what we're 
making off the existing online deals.

I can't do the corresponding overseas calculations, which are potentially 
far more profitable or dangerous for us (because the postage is so much 
more).

The basic problem is that if TAG really does cost us $2.50 per issue plus
mailing as we go over 1000, then we simply MUST bring in more than $14 per
normal member in order for us to add new members over 1000.  Right now
it's sort of OK because it's being made up in advertising, but we're not 
going to be bringing in more advertising to help supplement higher 
membership -- it's supposed to be the other way around. 

  - Erik

On Sun, 11 Apr 2004, Cheryl Rogers wrote:

> I found Robin's original multis quote.
> 
> Notes from me inserted.
> 
> 
> > -------- Original Message --------
> > 
> > From: Robin Dodson <robin@completedirectmail.com>
> > To: 'Cheryl Rogers' <cheryl@wilstream.com>
> > Subject: RE: Aquatic Gardeners Association quote
> > Date: Thu, 15 Jan 2004 16:42:04 -0600
> > 
> > Cheryl, 
> > 
> > See below for the postage on the multis...
> > 
> > 2 catalogs - domestic ($1.52), Italy ($4.80)
> > 4 catalogs - domestic ($2.44)
> > 5 catalogs - domestic ($3.13), Denmark ($7.55), Japan ($8.40)
> > 15 catalogs - domestic ($3.85), Canada ($7.65)
> > 30 catalogs - domestic ($3.85)
> 
> OK, so assuming we have 10 "group discounts" that order 30 issues--pretty 
> ambitious, but what the heck, it's hypothetical. That would cost us $154 
> per year in postage. 30 memberships rates a 20% discount = $480 per year x 
> 10 groups = $4800.
> 
> If TAG costs AGA $2.50 per issue x 4 issues per year x 30 memberships x 10 
> groups = $3000 per year.
> 
> plus $154 for postage =
> 
> $3154.00 in expenses which is a profit of only $1646.00.  Hmmmmm.
> 
> Doesn't seem like a lot, but it's not a loss. We *would* have to get more 
> than 1000 TAGs printed, though.
> 
> Cheryl
> 
> 

-- 
Erik Olson
erik at thekrib dot com

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