Re: [AGA SC] Membership Committee Initiatives

["Karen Randall" <krandall@rdrcpa.biz>]

The marginal cost per magazine over 1000 at Amprint was only $1 each.  I
can't believe the drop is not comparable with the new printer.

Karen

----- Original Message ----- 
From: "Erik Olson" <erik@thekrib.com>
To: <aga-sc@thekrib.com>
Sent: Monday, April 12, 2004 12:47 AM
Subject: Re: [AGA SC] Membership Committee Initiatives


> 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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