Originally Posted by
R_Strowe
So again, how does the ED raise revenue?
That's his problem. But I'd be shocked if bonuses etc. isn't tied to increasing membership. With paying membership increases come increased revenue. I have to wonder if he received a bonus (paid by us remember) in 2019, despite cratering membership revenue.
"And the survey says....?????"
Originally Posted by
R_Strowe
Cutting the magazine eliminates a cost, selling off the Muncie facility eliminates a cost, reducing salaries in Muncie eliminates or reduces a cost, but none of these generate revenue. The only way for AMA to substantially increase revenue is to either A: Increase dues (we all know where that'll get them), or B: Increase membership #'s.
And when you're not increasing revenue, you have to significantly decrease spending ... unless of course you have a magic money tree growing somewhere in Muncie. And since we've not heard of it, I suspect it doesn't exist.
Originally Posted by
R_Strowe
So I would love to hear how to increase revenue for AMA.
Capitalism 101 : Provide goods and/or services that people WANT to buy, at a price that is less than what they perceive to be the value of those goods and/or services. And the membership revenue shows, AMA has yet to figure out how to do that ... despite the EC all being "
...pretty smart..." (as described by former AMA EVP).
Originally Posted by
R_Strowe
Not reduce cost, because that falls under the theory of 'shrinking to profitability' (which doesn't work). Actual, viable revenue increase.
The beauty of their current approach, continue to do more of the same and hope for a different result, will be self correcting eventually. When they run out of investments to liquidate (something fast approaching), they will then either have to get serious about cuts, start selling land/property, or try something different and create actual value people want to buy (see above).