Reference No:_____________________

Submitted by:  General Services Committee

Date:  October 18, 2003

Action Item:

Action Requested:

Let the Sailing World and Cruising World contract expire as a member benefit and replace it with a value package worth at least $200.

 Submitter’s Pros:

  • American Sailor used to contain US SAILING’s message and news content targeted to our members.  It was eliminated by the publisher.  Therefore, Sailing World can no longer be considered, the “official magazine of US SAILING.”  Our Newsletter and website are now the communication vehicles which carry our message and news.
  • US SAILING will no longer be subject to the rising costs of the magazines as determined by an outside supplier.

Submitter’s Cons: 

  • Our members value the subscriptions to Sailing World and Cruising World as a benefit.  There will be attrition.  One data point is a 2002 demographic study stating that 7% of the membership valued the magazines; a more recent electronic survey suggested that 18% would not renew if the magazines were no longer offered as a benefit.
  • The acquisition of new members may be affected by the lack of a magazine as a benefit.

Financial Impact:

·        The magazines used to be a bargain benefit, but the publisher now wants to raise the price by $36,000 in 2004 and $18,000 each year thereafter until a target price of $12 is achieved.  This represents an expense of $272,000 in 2004.

·        At a 7% attrition rate, the loss of members would be offset by magazine and fulfillment savings and would be budget relieving in the amount of $109,000. 

Higher attrition rates would reduce the savings.  Break-even is projected to be 18%.

Political Impact:

  • Eliminating the magazines as a member benefit may create negative publicity and word of mouth as well as member ill will.

Comments:

·        If the contract expires, US SAILING has already started negotiations with Sailing World and Cruising World to offer a bargain subscription rate only to our members.  Other titles would also be considered.

·        Eliminating the magazines will make us look at the value equation and develop or modify an appealing, comprehensive benefit package that will be worth at least $200.  Discussions are already underway concerning discounts and savings that can be offered to our members in the future.

·        If allowed to expire, the publisher and US SAILING are committed to supplying issues up until the expiration of each membership so there would be no abrupt de-contenting of the membership.

Divisional Committee:  General Services

Board Action: