Re: [AGA-sc] Questions

[Kathy Olson <kathy@thekrib.com>]

I think we should check the cost before we say get them, if we get them 
for $15, sell them for $20, and free shirts for staff??

K

On Tue, 26 Sep 2006, S. Hieber wrote:

>>>> 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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