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Re: [AGA SC] Membership Committee Initiatives
It's what is called "the marginal kilowatt" argument in the energy biz --
when Mrs. Jones turns on a new 60 watt lightbulb and it cause the utility to
have to build a 30 million dollar power plant.
What is the cost structure for TAGs over 1,000? Do we have to do them in
blocksa of 1,000? If so, what is the cost for the second 1,000. Can we print
1,200 and at what cost for the extra 200?
David
----- Original Message -----
From: "S. Hieber" <shieber@yahoo.com>
To: <aga-sc@thekrib.com>
Sent: Monday, April 12, 2004 6:58 AM
Subject: Re: [AGA SC] Membership Committee Initiatives
> Okay, it's early. My boss, apolitical appointee, just got
> forced out of his job, and I haven't had my coffee. But
> Idon't think we're looking at these things correctly. I'm
> not arguing against doing them. I voted for them. But
> financially, I think we're looking at them incorrectly.
>
> Consider the example at hand of the club deals and 10 clubs
> at 30 each. Would we need more than 1,000 TAGs? I assume
> that, currently, with 800 members, we use about 900 TAGS,
> roughly. Presumably, if we had 10 clubs sign up (needed 300
> more copies so we'd need 1,200 copies). But we pay for
> 2,000.
>
> Consider, what if we only had 3 clubs sign up? We wouldn't
> need more than 1,000 TAGS, we would need 900+90=990. So we
> could use the excess TAGs that come from a printing of
> 1,000. The marginal cost of the 90 TAGS would be postage
> alone. Total net return on the 90 TAGS would be, by my
> rough calcs, $1,400.
>
> So until we need to print more than 1,000, the net
> (marginal) return would be positive.
>
> But when we reach the point where we do need more TAGS, the
> costs would be much higher than estimate. If you only
> needed, say, a total of 1,200 TAGS but print 2,000, then
> what's the marginal cost of the 200 TAGS in excess of
> 1,000? It's the cost of the additional 1,000 TAGs -- at
> $2.5 per TAG * 4 times per year* 1,000 additional copies
> per issue = $10,000, which = marginal printing cost of 200
> additional TAGs.
>
> The won't yield a postive net return. To the extent that
> the other 800 TAGS (2,000-1,200=800) can be used, that
> would lower the marginal cost of letting the Clubs deal
> push us over 1,000 TAGs.
>
> Of course, if we do nothing but happen to sell 300 more
> normal subscriptions than we have now, the marginal
> printing cost of the last 200 (900+300=200), would be
> $10,000. But the marginal revs ($20*200) would be only
> $4,000.
>
> It's like the vans for the field trip last year. Once you
> filled the vans you have an need an additional van, you
> have to get it loaded up a certain amount before adding
> that van will break even. You have to sell a certain amount
> of TAGs to break even on printing an additional 1,000.
>
> Fact is, unless I've totally misunderstood the unit costs
> and printing-run size, we need to sell 500 subscriptions at
> $20 each to break even on printing an additional 1,000 TAGS
> per issue.
>
> So the problem isn't something particular to Cheryl's club
> deals. And it's going to be a heck of a thing to reckon
> with.
>
> sh
> --- Cheryl Rogers <cheryl@wilstream.com> 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
> >
> > --
> > Cheryl Rogers, Membership
> > Aquatic Gardeners Association
> > http://www.aquatic-gardeners.org
> >
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> >
>
>
> =====
> - - - - - - - -
> AGA 2004 Annual Convention
> Designing The Nature Aquarium -- demonstrated by Takashi Amano
> Paludarium design -- Mike Senske
> Planted Aquarium Ecology -- Diana Walstad
> Cryptocorynes -- Jan D. Bastmeijer
> Field Trip, workshops and more, Nov 12, 13 & 14;
> Marriott Crystal Gateway, Arlington, VA, USA
> Details & Registration at www.aquatic-gardeners.org & www.gwapa.org
>
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