Special Edition SCR

[tom dougherty]

Hmm! By Whom? And what

Hmm! By Whom? And what were the results? Its about time we had some data published here, facts and figures. We can't make sensible business marketing decisions on wishy washy information.

I believe it was before Jeff Larue was editor, possibly back in the Marshall Clark days. Jeff, do you remember? The results were, as I stated, we were too small a special interest to merit consideration of one of the major publishers. Break even point for them is up in the 50,000-100,000 sold per issue area, depending on cover price. But, hey, if you want to check this out in today's market, please do; knock yourself out! Contact some of the publishers and see if they are interested.

One other point- we're not a "business" per se. We don't aim to make a profit. If we were, our tax status would be different (and not in a good way).

I ask again, what does the SCR cost to print, per copy, and how many have we actually sold at the published price? Are you all too embarrassed to publish this?

Can't answer the first one, maybe Pete can. As to the second one, to my knowledge we do not sell any at the cover price; the only people who receive the magazine are those who pay the yearly dues. Me, I'm not embarrassed to be associated with the SCR...

[JWLaRue]

Tom,

I believe you are right....it's

Tom,

I believe you are right....it's definitely been a while ago. It was probably when Bobbie V. was the treasurer too.

As I recall the 503-C not (or is it "non"?) for profit status means that the IRS treats any monies taken in not through membership dues very differently. I was told that this was a key reason for not pursuing selling the SCR at hobby shops, etc.

Perhaps a conversation with a tax attorney might be in order as part of any potential change in the paid distribution of the SCR to make sure that the organization is following the current tax laws.

-Jeff

[kazzer]

Me, I'm not embarrassed to

Me, I'm not embarrassed to be associated with the SCR...

No one was suggesting such a thing.
My question was -

I ask again, what does the SCR cost to print, per copy, and how many have we actually sold at the published price? Are you all too embarrassed to publish this?

We have now established that no actual individual sales of the SCR exist. So please answer my other question. How much does the SCR cost to produce - per copy?

While I'm a it, lets ask how many we print each year.

[pirate]

The SCR is not for

The SCR is not for sale. We are a not-for-profit organization and cannot sell them as a new publication, only as back issues that cover the cost of extra copies and postage.

The sole purpose of the SCR is as a benefit to the paid members. A portion of their dues pay for its production. Another portion is for their choice of postage, as to how fast they want to receive it after printing.

The cover price printed on the magazine is there only to show a perceived value to the members to see what a bargain they are getting for their dues payments. It is a value comparable to what other hobby pubs of this size that are for sale go for. That is all that dollar amount on the cover is for.

The SCR is what has evolved from the club newsletter, totally supported by members' free contributions as a way to share their aspects of the hobby with other members.

Kevin wants to use this "teaser" issue of the SCR, which really won't be the SCR because that is only the printed magazine, to show non-members what they are missing out on by not joining. The hope is they will want more and see that getting the full edition of the printed SCR, along with total website access, fun runs and new friends is well worth the membership dues and joining the club.

There is no desire to sell out the SCR to a for-profit publisher.

Pete
Managing Editor
SubCommittee Report

[pirate]

We print enough to give

We print enough to give each member one copy and a few overruns are kept to give to new members as they sign up through the year. This number varies with each printing.

We pay for a production artist to lay out each issue, approximately $1,000 per issue (a huge bargain), more when there are changes and corrections.

Printing averages around $3-3.5k per issue (lower than 2 years ago as I negotiated with the new print vendor). Shipping is on top of that and varies each issue according to whatever the USPS wants to charge. At the end of 2007 for standard U.S. mail, each issue cost $0.70 to mail. It is now about a $1.00. International was $5.33 (Jan. 2008).

So, if you do the math:
SCR production costs = $4,500 X 4 = $18,000
Annual club roster = $450
Renewal cards = $150
Envelopes = $600 for 3K (last about 1.5–2 years) so $300/year
Total = $18,900

Basic membership for mailing Std. U.S. bulk = $36
Minus $4.00 postage = $32
$32 X 600 members (approx. avg.) = $19,200

That leaves approx. $300 per year for the club to operate on. A lot of that is eaten up by Membership Chairman's expenses to copy issues if we've run out of printed issue, conference call charges for the Executive Committee to meet together (maybe 1 or 2 times per year), club insurance, Annual SubRegatta (not near paid for from this), and frivolous lawsuits threatened against the SubCommittee. Oh, and this website you're using for free too.

The base membership fee was raised by the EC beginning 2008 because it had remained the same for 15-20 years, and the club was broke at the end of 2007 with rising SCR costs and postage. Everyone was paying the same amount for membership back then and the club was losing money paying for the continually increasing cost of International postage. That is why the Int. members' rate is the highest now. We tried to pick a membership cost that was still reasonable, but would hopefully cover rising costs for a few years. As you can see, we're about there again.

So you see gentlemen, we pretty much run on a shoe string.

Any more questions?

Pete

[pirate]

Oh, one more thing. The

Oh, one more thing. The writing of articles, photography, editing and proof reading and all editor management of the SCR is volunteer—that means donated by members.

Putting each issue together takes time, at night and on weekends, in place of family time and model building and running. Put a price on that and shove it up your you know what.

Pete

[Guest]

I take it the annual

I take it the annual club roster is the membership list?

Would it be more cost effective to have it printed within the report that it is sent with? Maybe have it collated in the centre of the magazine so you can pull it out.

[kazzer]

The SCR is not for

The SCR is not for sale. We are a not-for-profit organization and cannot sell them as a new publication, only as back issues that cover the cost of extra copies and postage.

........then and the club was losing money paying for the continually increasing cost of International postage. That is why the Int. members' rate is the highest now. We tried to pick a membership cost that was still reasonable, but would hopefully cover rising costs for a few years. As you can see, we're about there again.

So you see gentlemen, we pretty much run on a shoe string.

Pete

Who says you can't sell them? The intent is certainly there, as you have a price on the front cover. You also sell advertising space on the web page AND in the SCR, so the argument regarding making sales is flawed.

I guess that pretty much sums it all up., and in my humble opinion, this sort of thinking is why the SC is broke and not growing.

I've never heard of a not-for-profit organisation NOT being able to sell products to raise money. Surely any 'profits' would be 'dealt with' by a competent accountant and put into a reserve fund? The association should be able to build up such a fund without taxation penalties. And, at the end of the day, there would be no 'distribution of profits'.

Kevin wants to use this "teaser" issue of the SCR, which really won't be the SCR because that is only the printed magazine, to show non-members what they are missing out on by not joining. The hope is they will want more and see that getting the full edition of the printed SCR.

I'm still not clear how you intend to actually get the message out. How are you going to attract people off the street, so to speak? (That's why I liked the idea of having a magazine on a news-agent's stand)

Personally, I don't mind what you do, but I just hate to see a bunch of people running down a path to nowhere. But - go for it! Prove me wrong!

[ojm]

Why not approach the "Sub"

Why not approach the "Sub" manufacturers themselves, Robbe, Revell, Moebius...etc and have a "Flyer" for the SCR included in the box?
Simple and cheap.

Just a thourght.

[raalst]

Edited on request of the

Edited on request of the moderator.

It is very strange to me to see people without member status
participating in this discussion about why people are not joining the
SC, offering all kinds of solutions except announcing to join up.

Advice is always welcome and participating in the forum is (currently) without any obligation, but it is the choice of subject to react on
that baffles me.

[kazzer]

Why not approach the "Sub"

Why not approach the "Sub" manufacturers themselves, Robbe, Revell, Moebius...etc and have a "Flyer" for the SCR included in the box?
Simple and cheap.

Just a thought.

Not so simple, and not that cheap either. Been there - dun that!

The logistics of putting a flyer in just ONE type of model becomes quite complex from an admin point of view. Also consider that most of these products are packaged in China, making it a slow, long term process. It also adds to the cost of manufacture. I doubt many manufacturers will go for it, unless you cross their palm with silver.

[junglelord]

Membership has its priviledges.
http://www.subcommittee.com/forum/icon_biggrin.gif

Membership has its priviledges.

[kazzer]

My suggestion:-


Objective
1. To increase membership

My suggestion:-


Objective
1. To increase membership and revenues for the SC.
2. To use existing tools and resources without incurring any additional costs.


The plan
1.
Promote the SC by offering a 'teaser' (Kevin's idea) in the way of a random back issue (already in stock, printed and paid for) for a nominal sum of $5. (covers print and postage costs). This to be done by members emailing friends, spiders, banner ad swaps, web rings etc. etc (what ever system Kevin comes up with). This purchase is done 'online' using Paypal.

2. Ask vendors to supply 'discount coupons' for some of their products that are printed on a sheet which is included with the back issue of the SCR. For example - Caswell Inc. will offer a $20 coupon on Sub-drivers, one for $25 on WFly radio systems, $5 on KMC ADF Pitch Controllers, etc.etc. Other vendors contribute the same deals to promote products they can afford to give a discount on. Lets say we end up with $100 worth of coupons.

3. An application form for a years subscription is added to the package, encouraging membership, to the SC. Once a member, the coupons are validated and kick in.

4. Vendors are charged a nominal sum of say $200 to contribute to the scheme each year. (More revenue)

The presentation is as follows.

Try a back issue for only $5 - lots of good stuff PLUS over $100 worth of coupons supplied by vendors. This can get you into the hobby very inexpensively.

If you like what you see, join the Subcommittee to receive quarterly copies of the SCR. and periodic exclusive special offers from vendors.

[pirate]

We are able to sell

We are able to sell things to raise money, but there is a limit.

Once you start printing quantities to sell, you are basically building a spec house. You have to print a quantity over what is currently being paid for, hoping to sell them and recoup the costs or make a little. If you don't sell all of them, you eat the cost, something we have no funds to do.

Also, you are then in business to publish a magazine to make a profit, and not a sub hobbyist producing it in your spare time—in other words, it becomes a job. As a club, we do our best to get the 4 issues out a year on time, but that doesn't always happen because it's a hobby, and real life comes first. If we have paying subscriptions solely for the magazine itself, and not only for club members, then it's a business. And we better deliver or we're liable.

The magazine is a benefit of joining the club. We want people to join the club, not buy the magazine. If they join, they get the magazine. Wow! what a deal. And our goal here is to get the sub hobbyist message out and get people to join the club.

Unlike kazzer, we are not doing this to make money. It is a club—for fun. When it ceases to be fun the club will go away. I see no faster way to make that happen than to saddle some of us with full-time publishing jobs.
So...no business plan. That seems like a pretty simple concept.

As far as how we plan to attract the man off the street...we don't. We want to be more targeted in our approach. If we hit every "man on the street" with our message, then maybe we get 0.1%. If we use banner ads on other hobby sites, where we know our members have come from, then our percentages go up. And we need to find other sources more targeted like that.

As Kevin said, send a digital copy to heads of the SubRons. They can produce their own CDs to hand out at fun runs, where people "who are interested" come up to watch and ask questions. That is called Mar•ket•ing. Specifically, Tar•get•ed Mar•ket•ing. It works better in advertising when you're not in business than a business plan for no business does.

So Kevin is on the right track. We just need more ideas on where and how to market.

The one about adding something to models through the manufacturers is a good one. Maybe not workable once you get down to it, but that is what Kevin is looking for—more ideas.

Let's change this from a b•tch session into a brainstorm session, ok?
No more negative karma. Only new ideas, please.

[pirate]

"vendors pay $200 to participate"

"vendors pay $200 to participate" -with a coupon flyer.

My report back to the membership on the most recent attempt to solicit new advertising for the SCR is this.

In march I sent a new media kit along with a letter to 10 businesses that most of us buy modeling and hobby supplies from regularly.

I conducted the poll on this site of members to see what our spending habits are per annum as a way to get a return value to offer them for advertising in the SCR—R.O.I.

This number was around $1.2 million when extrapolated by percentage over the entire membership.

The media kit had two printed examples of the SCR magazine and a advertising rate card in it.

You can run a full-page ad in one issue of the SCR for $140. It costs $420 to run a full-page ad in all 4 issues of the SCR per year. A bargain compared to $200 for one flyer that isn't even going to the membership. Who knows how many people will see it? So how do you figure R.O.I. on that?

Results of media kit mailing: No response.
Granted, I did not have the name of the Marketing Directors at these companies. I looked for them and asked for them, and did not get them. So the mailing were addressed to Marketing/Advertising Director.
And they could get followed up with a phone call, I didn't volunteer as the Advertising Editor, and I don't have time.

Kazzer, thank you for your offer to provide a coupon flyer for Kevin's project. That may help.

Pete