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Old 06-08-2007 | 11:51 AM
  #151  
STLPilot
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Default RE: Competing with AMA

ORIGINAL: JUGFLIER
I'd agree with you if MA could lower their rate, but you still don't understand that the rate is a market price, MA doesn't have the power that YP has because they are not a commercial magazine, they are a membership periodical. MA does not go into every RC'ers home, only AMA member’s home, YP has power. Also why don't you just ask the ED or your DVP why their rates are so low, Hoss says they do it intentionally, ummm ok.
STL, Market price in first and foremost by the cost of doing business. MA cannot continue to do business for less than its costs indefinitely. As printing costs rise and these costs are passed on to us in dues, at some point you reach a point where members will not pay it. Then you are forced to raise ad rates. Your argument does not wash.... At some time MA HAS TO RAISE RATES.
Market price in this particular market, luxuries, is and always will be based on what consumers are willing to spend on products, first and foremost. A luxury business molds it's operations to consumer spending. I mean why do you think RC makers are always forced to China for production, to move prices to consumer spending and competition. Asia has changed all the rules in toymaking for a long time.

The AMA or MA is not a commodity like you may be thinking. It's hard can't compete in commodities, metals, dairy products, oil, etc. their costs are fixed down to the penny on a daily basis, but marketing ads are not fixed. They are only priced on what and how and manfufacture can spend per on their ads and a lot of competition.

As far as MA costs, I told you MA has a fixed budget for MA. I read it somewhere it was $12 or 16, I forget what it was. That means MA is budgeted about 20-25% of AMA membership dues directly towards the publication. Right now it's beating that budget with lots of room to spare. Once MA breaks that budget, then they have to come up with solutions, until then each AMA member will continue to to receive their magazine and pay their $8 a year happily to receive it.

Once again, why debate, ask the AMA, sounds like they are answering important questions.