Re: Fee structures and more history

[Truman Prevatt <truman.prevatt@netsrq.com>]

While the proposed fee structure below "seem attractuve" it would most
likely be a nightmare in practice.  The impact on the computer system
not designed to support this type of application would probably eat up
tons of money in itself.

I belong to several professional societies, Institute of Electral and
Electronics Engineers, American Mathematical Society and Society for
Industrial and Applied Mathematicians.  All have a very basic fee
structure.  There are 1) regular memberships, 2) lifetime membership and
3) student memberships.  

The student memberships are discounted.  All include a basic publication
much as the AERC includs EN.  Independent of what you take advantage of,
you still pay the basic fee. In essence there is a basic cost required
to keep the organization alive and functional and the fee is based to
cover that.  There are basic functions of any organization, independent
of the fact that every member doesn't take advantage of them.  Many of
these cost much less because of the existence of the organization.  

I believe that when one starts breaking down the services provided by
any organization in to too small parts, then the cost per service
numbers are going to be very artificial. 

For example to perform any service what so ever the AERC has to exist,
which is a basic overhead cost that has to be allocated over the
services provided.  The overhead is fixed, so when one service is
eliminated or paid for separately, additional overhead has to be
allocated to the remaining services and hence the cost of the remaining
services goes up.  

The IEEE - I believe it was the IEEE, but it may have been SIAM - toyed
with revamping it's fee structure several years ago, based on the
services used.  When they did a cost benefit analysis, they found that
the resulting fee structure would mean less overall membership and that
they would have to cut services to the point that the members on a whole
would end up paying more for less.  What was also found was the
compartmentalizing of the services in the fee structure resulted in
additional cost to administer - hence an overall increas in overhead
cost and a higher overall fee.

In general the AERC fee structure is fairly simple.  Why make it more
complicated?  And it is fairly inexpensive compaired to other
organizations, considering the size and scope.

The only issue I would make is AERC International.  I do not believe the
$10 additional covers the cost associated with AERC International. I
don't believe they are paying their full overhead impact.

Truman   

K S Swigart wrote:
> 
> On Wed, 30 Dec 1998 Trailrite@aol.com wrote:
> 
> > totals to $105 and they only get one EN.  I figure, the EN mag. is worth at
> > least $45 per year.  So whats the problem?  I think its great that the AERC
> 
> I figure the EN, with the amount of advertising it does ought to about be
> able to support itself.
> 
> And discussing the AERC's "cost/member" is not a simple task.  There are
> many services that the AERC provides, only some of which are enjoyed by
> all members.  A competent cost accountant ought to be able to figure it
> out (depending on how the AERC has been doing its accounting).
> 
> _I_ would like to have the fee structure reflect more closely what each of
> the services cost and have them allocated directly to those people who are
> using them.
> 
> THerefore, if you want to get awards, you have to pay for the awards
> program.
> 
> If you want to have your horse's mileage tracked, you have to pay to join
> the mileage tracking program.
> 
> If you want to go to a ride, you have to pay the per rider sanctioning fee
> (which ride managers can "include" in the entry fee, or they can break it
> out on the form so that people know that that is where some of their entry
> fee is going).
> 
> If you want to go to convention, you have to pay for convention (what it
> actually costs, rather than having it subsidized by members who don't
> go...which I don't know if that is currently the case).
> 
> "Base" membership ought to be those costs that are the same for every
> member.
> 
> 

-- 
Truman Prevatt
Mystic “The Horse from Hell” Storm with one in the oven
Rocket a.k.a. Mr. Misty
Jordy a.k.a. Bridger (when he is good)
Danson Flame - hey dad I'm well now and ready to go!

Brooksville, FL