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RE: MAAC membership reasonable? - 4/10/2005 6:01:12 PM   
Morison


 

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quote:

ORIGINAL: kenair
Businesses love the maac magazine, the membership subsidizes the magazine cost, if the cost of the magazine was paid for by the advertising, would those companies still pay the higher rates and support the mag - let's see and try it and remove the subsidy.

The thing is that one of the mandates of MAAC is to support an promote the hobby in Canada and one way they do this is by providing a cost effective (subsided) venue for manufacturers, retailers and events to reach the entire membership. You will note that there are no US retailers at all in the magazine, and that's not because they don't want in!
The ad rates being charged are about at the limit of what the stores are telling me that they can support (of course they'll tell me that) yet they are only about 20% of what a commercial mag would (should) charge. But the rate allows the 'small market' companies and mom and pop stores to have a good presence and to actually afford to be seen in front of 12,000 members!
Beyond that - the subsidy is really only paying a subscription rate of about $12/member. However there has to be a value of the dedicated space (62 pages an issue, minimum) MAAC gets for their message. That space would cost over $150,000 to buy! (at the current rates) or exposure value (in marketing valuation standards) of about $500,000. (Or would cost about $550,000 to buy from a 'commercial' magazine.




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Keith Morison
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RE: MAAC membership reasonable? - 4/10/2005 6:10:31 PM   
Morison


 

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quote:

ORIGINAL: reo
At this point, the organization (MAAC) is very fortunate that membership is forced onto everyone that wishes to fly at a MAAC sanctioned club field in Canada. Imagine what would happen, if tomorrow, a national insurance company advertised that they were selling insurance policies to Canadian modelers direct for $25 per year! No one here is arguing that the insurance at $12 or $15 per person is STILL the bargain of the century, what is being questioned here is the money losing ventures that bleed the coffers of the other $700,000 or $800,000 per year.


Hi Ron,
For the record, the budget the board was struggling with was the 2005 one, which has an income level of under $600,000 and $145,000 in insurance, so the $800,000 'bleeding' figure is grossly over exaggerated.
Even at $75/member, the total income will not likely break $800,000



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Keith Morison
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RE: MAAC membership reasonable? - 4/10/2005 6:13:34 PM   
4*60


 

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quote:

ORIGINAL: Morison

quote:

ORIGINAL: kenair
Businesses love the maac magazine, the membership subsidizes the magazine cost, if the cost of the magazine was paid for by the advertising, would those companies still pay the higher rates and support the mag - let's see and try it and remove the subsidy.

The thing is that one of the mandates of MAAC is to support an promote the hobby in Canada and one way they do this is by providing a cost effective (subsided) venue for manufacturers, retailers and events to reach the entire membership. You will note that there are no US retailers at all in the magazine, and that's not because they don't want in!
The ad rates being charged are about at the limit of what the stores are telling me that they can support (of course they'll tell me that) yet they are only about 20% of what a commercial mag would (should) charge. But the rate allows the 'small market' companies and mom and pop stores to have a good presence and to actually afford to be seen in front of 12,000 members!
Beyond that - the subsidy is really only paying a subscription rate of about $12/member. However there has to be a value of the dedicated space (62 pages an issue, minimum) MAAC gets for their message. That space would cost over $150,000 to buy! (at the current rates) or exposure value (in marketing valuation standards) of about $500,000. (Or would cost about $550,000 to buy from a 'commercial' magazine.




All good principles and I'm happy you pointed it out but I'm with Kenair on this one. Just an opinion.

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RE: MAAC membership reasonable? - 4/10/2005 7:03:02 PM   
Morison


 

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4*60
don't forget that there are also a minimum of 3 mailings that have to be made (by regular post) to the members. notice of zone meeting, notice of AGM (including notice of motions) and the results of the AGM. The cost of preparing and mailing these notices as regular mail would come very close to what is being spent on producing the magazine, which gives a lot more value than only the three mailings would. (There were some 25 pages of resolutions, recommendations and other AGM material sent to me this year, and it was a light year - I suspect that it would have cost $5/member at least on that mailing alone!

to view the $12/member as a subsidy is misleading - it IS better referred to as a subscription rate. (discounted at that- you can subscribe to the magazine for $24) At worst, it is paying for the content space.

All that said, the reality is that the association is spending $12 a member to communicate with them 6 times a year, $12 a member to show them what is happening across the country and to show them the variety of activities that happen as well as what events are happening in their area and close to them. The cost comparison MUST be made to the cost of the minimum mandatory mailings that the mag replaces. I suspect that the mag, in reality, might even be cheaper!


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Keith Morison
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RE: MAAC membership reasonable? - 4/11/2005 12:53:46 PM   
Jim_McIntyre



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I think the magazine is a bargain.

I do like to be informed....

< Message edited by Jim_McIntyre -- 4/11/2005 12:56:26 PM >


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RE: MAAC membership reasonable? - 4/11/2005 1:56:51 PM   
britbrat


 

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I agree that the mag is indeed a bargain (as is the insurance).

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RE: MAAC membership reasonable? - 4/11/2005 3:32:54 PM   
reo


 

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Hi Keith,

Thank you for taking the time to post to this thread.

Although it was interesting to see the numbers for 2005 in your post #27, this thread is focusing on 2006 when the new membership rates go into effect.

Assuming that we can continue to attract 12,000 memberships in 2006, the gross income from memberships in '06 will be $900,000 and after subtracting $128,000 for insurance there will still be almost $800,000 left over. Therefore, I stand by my numbers in my post #8.

Ron

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RE: MAAC membership reasonable? - 4/11/2005 4:56:27 PM   
Morison


 

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Hi ron,

I tend to get pulled out of the woodwork when stuff like this gets bounced around, particularly when the magazine gets questioned

When it comes to budgeting, you can't assume 12,000 members at full pop. We have 12,000 members but we also have many juniors and we also have people who have bought 3 year memberships lasting through 2007 (2008 will be the first year that the full increase will be available)

It seems like that the number used for budgeting is about 10,500 memberships at full rate, although I'll wager the number of 3 year memberships will be higher this year. The highest budget income you would see for 2006 is about $775,000 and I'd suggest that budgeting anything over $700,000 would be rather optimistic.
When you do see the $775,000 in 2008, we will have likely seen the relative value of that $775,000 drop to about $745,000 in Today's dollars.

So, after insurance (145 for ALL of the insurance costs, not just member liability), in 2006 you'll have $555,000 before having a staff to administer the memberships or to provide any services such as event sanctioning, or any place to have an event listing. The board is committed to the idea of A) putting away something like $200,000 per year in contingency (I wish them luck in that effort) and returning money that they stripped form member services this year to balance the budget.

In 2006, staffing will be about 17% of the budget - I know that in my business my staffing is more than 17% of my budget and I bet it was in yours too! In 2006, Staffing, office and 'operating' costs will be only 37% - less than typical staffing costs (40% for staffing costs is not unusual in a business)

So, not only do we have a staff, but we have an already streamlined* staff and office that is about $260K in 2006 - leaving us with $295K of 'bleeding' room - and you don't get a magazine yet!

(*an office review by an independent company done in 1997 or 98 at a cost of some $8,000 clearly stated that the office was understaffed and that the staff was under paid for our TYPE of company operating in that area)


< Message edited by Morison -- 4/11/2005 6:42:32 PM >



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RE: MAAC membership reasonable? - 4/11/2005 5:12:24 PM   
reo


 

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Hi Keith.....thanks for the clarification.....Ron

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RE: MAAC membership reasonable? - 4/14/2005 6:18:53 PM   
Drexus



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It seems to me that issues/discussions here have standard characteristics of any open debate when money is mentioned. The underlying feeder to all relevant or irrelevant comments ultimately revolve around money. If MAAC has to raise rates, it will spark ... well... everything you read here. Suddenly everyone pulls out the magnifying glass and starts to point fingers and say "what's this?" So, with this understanding, please note that if we all paid $100 to be a MAAC member, and have been for the last 10 years, then there would be no quibbles here. Nor at any big meetings concerning insurance, staff, magazines... or any of that. As the fee would cover everything, and nothing would have changed to spark all these discussions. So acknowledging that, we have to understand our current situation better. And there are solutions to these issues.

COST
I too agree that $75 is nothing to squawk about. There are, however, two ways we have to look at this. From the perspective of someone who fits the profile of the average MAAC member (45 year old male, owns house, family, job/retired) the cost in caparison to what you pay in driving a car - is not worth anyone to quibble about. And yes, compared to other hobbies, this one is very cheap. I mean, if we didn't all fly model planes, what would we be doing? Golf, boating, skiing, scuba diving, RV homes, .... unless you consider riding a bike a hobby, this is a lot of bang for the buck (bang does not mean "crash".)

The other side to it is the new members. I'm not talking about Mr. Jones down the street just bought an ARF and is now seen at the local meetings... I'm talking about the younger pilots. $75 for someone who lives with his parents is not an easy amount to come by, unless Dad is in the same hobby. So with that, cost does become an issue. The solution? Well... you have to face facts, and you can't feel bad for the youngsters. We can't think back to the time when we first started out. It's not like that anymore. We have kids with $300 MP3 players and $500 hockey and baseball memberships. So tough beans to them. Let them make the decision.

INFORMATION
When money is the real issue, how it's spent will always be questioned. As it stands, MAAC sponsors a magazine. This is a great function of MAAC in that information can be had by all members. But before I get into anything about the magazine, I want to note that MAAC, and all the functions/services associated with it, is like a race car. If you ask an F1 driver what his primary enemy is on the track, he will say "My steering wheel". The less you use it, the faster you go. That's why they talk so much about how to enter the apex of a turn. So too is the situation in any organization. And anyone here who has run, or does run a company, will agree that sudden changes in how the company functions/operates, will result in an efficiency loss, and generate delays in most management processes of internal functions. Would you buy a car from an auto maker if they changed their whole line every single year? Would they survive the changes?

So what's my point here? I believe that MAAC must define itself. What ever it does internally or externally must be defined, and set. If sponsoring events is what MAAC is all about, then let it be so. Let's just make sure that everyone agrees that this is what we want. If we don't, then none of these issues will ever go away. So the questions rise to that idea, and many may ask: "why should I pay for this, or that?" This is completely valid. If I don't go to events to compete, why am I paying someone else to? How does Canada send athletes to the Olympics? Simple, just look at the ski jacket the athlete is wearing. Loaded full of logos, icons, and badges (it's a wonder they can compete with all the extra padding). Those who want to compete, will seek sponsorship. Should MAAC sponsor an event? Let's see... When a sponsor puts a badge on the pilot at an event, there is a return for the sponsor. Exposure. Exposure equals sales, and so everyone is happy. This is how it works in any industry. What does MAAC get if they sponsor an event? ...More members? What is the return? Not anything I can see. So why is MAAC sponsoring events? I'm not sure really... is there some obligation, some kind of Canadian pride that says MAAC should? Well, I don't really know. Is that what MAAC is about, is that the function of MAAC? What is the bottom line? Simple. MAAC has members because it's mandatory for pilots at the field. Members understand they must pay... if they want to play. Simple as that. So as hard as it sounds. MAAC, in my opinion, should not be involved in supporting anything that is not in the prime interest of all members in conjunction with it's primary function. Otherwise, sponsoring an event to which there is no return... is just giving away money.

Many may argue that "what are you complaining about... is only a $1 per member..." It's the principal. It could be next to free, and it will still generate squabbles and questions from all those who have nothing better to do. And MAAC as an organization, has to be accountable to all members... even the squawkers. It's their duty. So why put that load on them? It's not worth it, and it shouldn't be an issue. Will the event die on the spot if MAAC doesn't sponsor it? I think we all know the answer.

If MAAC defined itself true to it's primary function. Then there would be no questions, arguments, or ruffled feathers. With a defined function in place, staff could concentrate on doing what it knows has to be done.

Leaving open the option to do/offer services at random, dilutes what the purpose of MAAC is to everyone. To me, it sounds like the initial function of MAAC was too simple. So ideas started to surface... "MAAC should do this, or that..." veering away from what is really needed. We have to stop thinking and aspiring about "what would be nice", and become truly focused. The MAAC staff probably answer mail and phone calls about a great many things. Things that have grown over the years... requiring more staff time to handle, manage and answer to. Ya, I bet they are underpaid. We all want insurance, information, and our car waxed with a free coffee.

An organization that must be accountable to all members should be able to offer accurate and timely information relevant to every member. What information do all members need? How about everything that MAAC represents. Yes, event schedules of zone functions, internal news, status of critical concerns... these sort of things. With that, MAAC needs a vehicle to deliver this information. This is where the magazine come into place.

MAGAZINE
Let's all remember that the magazine is not the function or property of MAAC. It is a very important service, but should be regarded as such. Should MAAC decide what should be in the magazine? Well, is the magazine the property of MAAC? Not that I'm aware of. No more then the 50 advertisers in the next issue of RCM. MAAC pays the magazine in order to get it's material out to users. There is a cost to that. If there is anyone that understands that more, it would be me. I've been an Imaging Engineer for 15 years in the print & publishing industry. I'm also a certified Graphic Designer. To put a magazine together is a lot of work. But what is a magazine? What is the "MAAC magazine"? Funny as it seems, they are not the same. However, I can see that the magazine is quickly trying to become "a real magazine". Yes, full of reviews, advertising, and extra goodies. The most of the work in putting a magazine together is spent organizing the material. If all material in a magazine just showed up all at once, then it could be assembled in a week or less. But getting it to that stage is the real work.

Where am I going with this? Let's ask what the function of the magazine is. Is it a news and information channel to all members? Yes. Is it a place to read reviews on the "new sport something-er-other"? Well is it? Sure it's nice to read about something new. If that's why it shows up at my front door. If the magazine is to be a magazine, then let it be a real magazine. Full gloss cover to cover, 50 advertisers, editorials, reviews... the works. Because that's how a magazine survives. Anything in between that and the MAAC newsletter will make both halves suffer the burden of a truly large identity crisis. Is it a magazine or a newsletter? Can you truly have both? Sure, it's possible. But not without a defined division. As it stands, the newsletter section is printed on newsprint, and run on a separate web press. It's cheap and fast. The "magazine" portion tries to stay on the gloss, but landing a flat for a 16 or 32 page signature means you can't have both. Advertisers - who feed the magazine - really don't like sending material with dot gain settings for genson web stock, only to find their material on newsprint. So the magazine suffers in the attempt to generate a decent income. MAAC needs the publication to exist for it's purposes. And to keep the publication floating, MAAC must deal with this shared space with in a publication that wants to be a magazine. Whether cost is affected, I'm not sure.

Ideally, a bimonthly issue that shows up at my front door in a plastic bag, should have two separate items in it. A Newsprint MAAC news item, and a glossy Canadian magazine full of Canadian content WITH international material. This division would allow for more control of the presentation of material to MAAC members without the interruptions of non-essential material.

What will this do to solve our concerns? When members ask questions about ... anything, they want answers. A publication that is focused on the true functions of MAAC can better address the questions - especially if there is room for it. Cost in producing an all-newsprint publication is cheap. Formatting content for the purposes of MAAC's needs is a simple task. The Quark template is there, a real no-brainer. A separate magazine bundled with the newsletter will obviously get the same exposure to Canadians. Advertisers would then love to be part of an all-Canadian magazine with a guaranteed readership. The magazine would then actually make money. There could be more staff, for the added business. There would be real in-house resources to handle the assembly of the MAAC newsletter. To that extent, a point will be reached where the tables will turn. The magazine will sponsor the newsletter completely. All in thanks to the guaranteed readership supplied by MAAC. I know for a fact that if MAAC approached a Canadian hobby magazine with it's exposure, that magazine would have it's market handed to them on a pillow. The beauty of having a separate Canadian magazine lies in it's options. It would now be found at magazine stands. If Canadians want to promote a presence in a US dominated market, then I see no better way then this. But we have to divide the two. The two have separate goals, with only mild common values. With a change like this, MAAC members would get more potential room for more information that is relevant to members alone.

If members do not get any answers to their questions, they start to speculate, they gossip, mutter and theorize. In no time, MAAC soon finds itself having to deal with issues that were never there. Adding complexity and process to an already underpaid job.

If MAAC stripped down to what it is really needed for: Critical MAAC information, Canadian events, Safety reminders... then members could not squabble about MAAC's involvement in areas that are not critical to it's existence. Many are very worried that one day MAAC might not be able to secure a carrier for a membership policy. Insurance companies look for any excuse to raise rates. All they need is an excuse. If I sponsored an event, my operating insurance would go through the roof. Why? Because my name will be associated to the function of the event. And if an accident occurred at the event, my insurance company has to send a representative just to say I had no contributing factor in the incident. If I'm not a sponsor, and I'm just visiting, then everything is fine.

I can see insurance companies looking at MAAC and putting their ultra huge microscope on the organization to see if they can define what MAAC is, and what MAAC does/represents/offers/produces/supports. They will look for anything. And if MAAC is sponsoring a team, event, picnic ... questions will be asked. This is my personal, first hand experience.

So let's be real. With an organization that has it's existence questioned by members, should we be asking MAAC to offer itself in other areas - and become many things just because we think "it would be nice"?

Somehow I think that the world of Canadian model aircraft will still be here tomorrow if MAAC stripped down from a Gold Wing to a Moped with a basket - especially if it's sole purpose was only to fetch milk from the corner store. In light of what potential challenges we face today... it scares me to think that we are arguing over what MAAC should pay for/offer when the very core of it's purpose is on life support. If we don't see this as a wake up call, promptly pour a bucket of ice water over your head.


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Ken Charron
Senior Product Designer

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RE: MAAC membership reasonable? - 4/14/2005 7:51:56 PM   
Ram_Man



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Well said..... Ken.

Cheers,
Tom

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RE: MAAC membership reasonable? - 4/14/2005 8:49:30 PM   
can773



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quote:

ORIGINAL: Drexus

So what's my point here? I believe that MAAC must define itself. What ever it does internally or externally must be defined, and set.



THE CONSTITUTION OF M.A.A.C.
This Constitution shall come into effect on March 17, 1991 and shall replace and supercede
any previous Constitutions
ARTICLE 1 - NAME
The organization shall be “MODEL AERONAUTICS ASSOCIATION OF CANADA”;
with its shortened form shall be known as M.A.A.C., hereinafter referred to as the
‘Association’, and is incorporated as such under the laws of the Government of Canada.
ARTICLE 2 - AFFILIATION
The Association shall act as a representative of the Aero Club of Canada (A.C.C.) in
establishing and maintaining official regulations governing the conduct of model aeroplane
records and contests and to issue sanctions for same in accordance with any authority
granted by the Aero Club of Canada, as representative in Canada of the Federation
Aeronautique Internationale (F.A.I).
ARTICLE 3 - PURPOSE AND OBJECTS
The Association is organized for the purpose of carrying on in one or more provinces of
Canada without pecuniary gain to its members the following objects and purposes.
(a) To foster, enhance, assist, aid, engage in and develop scientific advancement in
the sport of model aeronautics; to give recognition to leadership in the field of model
aeronautics and to offer guidance in the direction of affairs affecting model aeronautics on
a national basis.
(b) To provide a central organization to record and disseminate information relating
to model aeronautics.
(c) To publish scientific journals and news bulletins relating to model aeronautics.
(d) To guide and direct national model aviation activities to the end that model
aeronautics may be advanced in Canada in a manner that will best serve aviation as a
whole and as well to serve as liaison with the Ministries of Government concerned with
aviation in Canada.
(e) To direct the technical organization of national and international model aircraft
contests held within Canada in accordance with any authority granted by the Aero Club of
Canada or to conduct same.
(f) To licence model aircraft and fliers thereof for competition in accordance with
authority vested in the Model Aeronautics Association of Canada by the Aero Club of
Canada.
(g) To have recognized by the Aero Club of Canada, all official model aircraft
competition and records which are sanctioned by the Model Aeronautics Association of
Canada.
(h) To enable the holding of model aircraft contests with the sanction of the Model
Aeronautics Association of Canada.



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Chad Northeast

(in reply to Drexus)
       Post #: 37

RE: MAAC membership reasonable? - 4/14/2005 9:24:36 PM