Re: [AGA-sc] Questions

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

>>>see below

----- Original Message ----
From: Erik Olson <erik@thekrib.com>
To: aga-sc@thekrib.com
Sent: Monday, September 25, 2006 4:23:54 AM
Subject: [AGA-sc] Questions

>>>>>>Ohhhh, those questions.

  Another late night reading archives.

 Scott: I'm looking at the various budget forcecasts used to predict 
whether the convention would break even, and where it shows it happens at 
around 80 people.  It appears these did NOT take into account auction 
revenue, or that auction revenue is hidden from the spreadsheet.  Can you 
elaborate?


>>>>>>>>>>>>I've been assuming auction revs at 1.3 items per paid attendee and 
>>>>>>>>>>>>an avg of $8 per item gross revenue based on 2003 data and a 30% 
>>>>>>>>>>>>share to the convention. That's not espeically conservative except 
>>>>>>>>>>>>that the convention share will be higher than 30% overall since the 
>>>>>>>>>>>>FAN donations are significant $s with 100% going to the convention. 
>>>>>>>>>>>>But in any event, Silent and live Auction revs are absolutely 
>>>>>>>>>>>>critical to this thing working out financially.

Scott: Based on what I dug up yesterday, I think you are the one to decide if 
we have the budget to do T-Shirts (as opposed to asking the question 
"Are we doing shirts?").  My only suggestion is that whoever might do the 
printing (Bill, or Cheryl's connections) get a quote for a run of 50 
rather than 100 shirts.  I think we'll sell around 25-50.  We can probably 
give away shirts to volunteers as a thank-you.

>>>It was hard to know whether to inlcude them or not. I had something small 
>>>for shirts that I've been using as a place holder.
>>>Let's figure about $650 for 50 shirts or an average of $13 each -- that fits 
>>>Bill's vendor's price on a lot of 100. I assume at 80 paid attendees, we 
>>>might sell 15 @ $15, proportionally more or less with more or fewer 
>>>attendees.
 
>>>With those assumptions, they can generate $300-$400 in losses.  If we can 
>>>sell the same number of shirts at $18, then the loss on the shirts would be 
>>>about $230-350. The breakeven moves up by the loss divided by $59 so about 5 
>>>to 9 registrations to cover the shirts. It depends very much on  how many we 
>>>we have to buy, how much we could sell them for and how many we could sell. 
>>>On a financial basis, they don't make sense. They will cost us and we 
>>>haven't gotten close to 80 paid regs yet. So pushing the breakeven bar 
>>>higher might be really pressing it. Otoh, we're probably within a 
>>>$1000-$2000 in losses at this point rather than the $3000-$5000 range. And, 
>>>we might even break even, there's still time for a big rush. So shirts won't 
>>>be a terrible burden. Still, financially, they don't make sense.

>>>>As a business decision, it could be good to get them anyway -- PR, 
>>>>intangibles, and all that. I say someone should buy 50 shirts if we can get 
>>>>them for $13 or less average cost per shirt --  and someone wants to get 
>>>>the >>>design , deal worth the shirts and printer, etc.. Be good to give 
>>>>some to staffers and sell what we can. 

>>>Should we ask Bill if he wants to order 50 shirts? ;-)  It might be salt in 
>>>a lot of wounds if we did our own convention design shirt at this point. 
>>>(although, personally, I'm partial to KR's work).

So the narowminded Treasurer says no but I say yes to shirts.

sh

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