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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