Planning for the future
Auto bailout No. 1 is done. I wonder how many more there will be? I would guess we’ll ultimately give them about $50 billion before we let them go under. But we haven’t seen anything yet when it comes to attempts to pump money into the economy. The new administration plans to inject at least a trillion in the form of a giant “make-work” program.
I think the proper business strategy for BHM right now is to begin planning for 15 to 25 percent inflation in a year or two. (How else can the economy absorb this big increase in the money supply?) I’m going to assume the $24.95 I now charge for a subscription to BHM will be worth about $20 to BHM in about a year. What do I do to offset that?
Paper and postage, my two biggest expenses, will also likely go up dramatically in a year or two but I can combat that with the launch of the e-issue, which doesn’t have those costs. I think the e-issue will dovetail nicely with the print issue, and I think many subscribers will want both. Right now I plan to charge $24.95 for either the print or e-issue, but $34.95 if you want both.
Although businesses in America are going into Depression with everyone else, there are good opportunities for a business such as BHM that has been run properly for years. We have no debt and we have a sound product, plus I have very smart, loyal people. I see no danger for us but I can foresee widespread carnage in the magazine industry as a whole.
Unlike most magazines, we are not dependent on advertising revenue as advertisers cut back on their spending. We could lose all our advertisers and remain healthy, but other mags would fold. Our money comes from paid subscriptions, and our subscriptions are increasing as the Depression deepens because of the nature and quality of our articles. I have always put content over advertising, and that philosophy has now put BHM in a very strong position as we enter both the internet age and a Depression. You’d almost think I planned it this way.
The next few years will be interesting. We are all now actors in a big economic drama that will be played out over the next year or two or three. I feel pretty comfortable, but I’ll be as vigilant as I’ve always been.
December 21st, 2008 at 1:04 am
Dave,
Mom just gave me for Christmas a two-year subscription to BHM (thanks Mom!) – for folks like me, just re-upping subs, any chance for a discount if we want to add on the e-issue after the fact?
December 21st, 2008 at 1:10 pm
I’m sure we’ll do that for people who are already print issue subscribers. We’d probably just charge you another $10 for the e-issue. The key for us in order to be viable with the e-issue is to have people pay the minimum $24.95 subscription price, whether they buy the print issue or e-issue.
We won’t sell the e-issue separately for $10 because there is not enough money there to pay all expenses. We found that out several years back when we launched an earlier e-issue in pdf format.
December 21st, 2008 at 4:47 pm
Hi Dave: Thanks for using the word “depression”. Too many people still think we are in a recession.
December 21st, 2008 at 6:10 pm
Dave, do you think that people will pay full price for an electronic subscription? I can’t imagine that they would. Even a slightly lower price might motivate people, but I don’t see anybody switching to e format when the price is the same. I could be wrong. I just don’t see what the motivator would be. People would still rather hold paper in their hand.
December 21st, 2008 at 7:28 pm
I’m really glad to get feedback like this because it helps me think about how we should launch an e-issue, and maybe get more feedback. Here’s my thinking so far:
I don’t mind if people don’t switch from the print issue. The print issue is our bread and butter, and we know the pricing structure works for us. The only reason I’m going to an e-issue is because I feel the world of publishing is changing, and I think BHM needs to keep pace with the technology future readers will expect.
The e-issue, in the near-term, may turn out to be primarily for people who find the print issue inconvenient to handle or unaffordable, such as being a foreigner and unwilling to pay the $24 (Canadian) or $40 (other foreign) postage necessary to send the magazine via snail mail. I think there are a lot of people in Europe, India, South Africa, Australia, etc. who will pay $24.95 for an e-issue. They have no other way to get BHM beyond what we put free online.
In America, the main attraction for an e-issue may be the interactivity we plan to build into it. We will have photos that will pop off the page and walk around in the e-issue. When Silveira writes an in-depth piece on the economy, for example, subscribers will be able to click on his photo and watch a discussion between Silveira and me discussing the econmy, just like we have done behind the scenes at BHM for years. Jackie Clay will also begin walking and talking by clicking the photos in her articles. We’ve already discussed this with Jackie and provided her with the necessary technology. There will be a lot of other opportunities for this sort of thing: blog expansion by various writers into the e-issue, twitter accounts, and whatever other technology makes for more interactivity.
What I have to be careful about is pricing the e-issue too low so that it becomes a burden. Last time around we were flooded with e-mails and phone calls from people who could not make the e-issue work on their computers. Most of the problems were operator error, but BHM still needed someone with necessary knowledge to field all the calls and e-mails. We charged about $10 for an e-issue back then, which was not enough (a few thousand subscribers) to pay that knowledgeable person a salary. Perhaps this time around the software for an e-issue will be bullet-proof so that we can lower the price, but for now I want to be able to pay the bills.
I too would rather hold paper in my hands. I think most people are like you and me. The e-issue, I think, has to be an extra (at least for Americans) for which people would be willing to pay additional money. For foreigners, the e-issue may be their first opportunity to read a magazine like BHM. That could open up a whole new world for us. Imagine being from Inida (English is one of their official languages) and reading how rural people in America live and think. I think it would be an eye-popping experience for them.
December 21st, 2008 at 10:45 pm
About the bailout, Canada just gave G.M. $4 bill. I have always bought Amercan made p/u’s but thinking on switching to toyota, better made, 2/3rds the price and am not forced into supporting the union whine-asses anymore
December 22nd, 2008 at 9:46 am
I’d prefer and E-issue over a paper issue. I still like magazines I can hold and share, but would rather have a detailed electronic copy. That way I can read, and reread without having to keep track of paper. It would be great if your major features were easily downloadable in PDF. I like to be able to print articles when baking or using them for reference when working a project. I know I get that with a paper copy, but printing just what I need is simpler for me.
December 22nd, 2008 at 10:54 am
I’d be content to sit on the couch reading off a laptop, if it was formatted to fit the screen! I can’t stand reading half a page of a pdf, especially one with columns so I have to scroll down, then back up again (and it usually “intelligently” scrolls to the next page for me anyway).
I’d supplement my paper subscription, but never replace it, and only if it addressed the usability items above. Otherwise, it’s not worth it to me for the aggravation factor.
December 23rd, 2008 at 11:17 am
Hi as i have mentioned before we would definatly subscibe to an e zine version. it would be worth every penny. it`s the postage costs and delays (and only receiveing half your overseas mail in the uk)that have always put as off. Another consideration is that in the UK a magazine such as yours is considered politically incorrect almost subversive in its talk of independence and asking for as little interference for government as possible. you want to see how quick you get referred to social services when you mention you are going to home school your children. though the teachers think it is ok to give 5 years olds sex education right through to the smallest details including gay lesbian and transgender!
god only knows what trouble your magazine would land me in! a man in Chester was arrested last week for dicussing a shooting competition he was going to this week on his mobile phone. He was arrested under the prevention of terrorism act and detained for 11 hours.
We live in dark times where unless you tow the official line you really need to be aware.
we are emigrating ourselves to New Zealand asap but the recession has slowed our plans a bit, we would have liked to emigrate to the US as i have always loved Montana since visiting as a child,but since we are married have three children and are solvent and hard working the authorities don`t seem to want us!
best of luck with the new e zine we`ll be one of your firsts.
hope you all have a wonderful christmas
roger and clare cotterill
December 27th, 2008 at 12:25 am
Dave – Our copy of the latest BHM issue arrived in our APO mailbox yesterday along with a homeschooling magazine and Martha Stewart Living. I found it interesting that of the three, only BHM was *bigger* than usual. The homeschooling publication actually stated in their opening pages that they had to cut costs this issue by reducing the size of the publication, and asked us to remind other folks to subscribe and basically help ‘em pay the bills. I understand the concept of course – but the point that really jumped out at me was that BHM immediately came off as more obviously prepared (no pun intended) for the current economic situation.
When it comes to the e-issues, make sure you remind people how “green” they can be. While there are plenty of us who loooove to have a “real” (ie printed) magazine or book in our hands, there are quite a few folk who will readily change to save on paper and ink and the environment, as well as the really high-tech types who love their laptops, Kindles and other reader products. I hope you’ll all see success either way, but it’s nice to know that we can depend on you to live what you preach, which is focusing on getting stocked up and getting RID of that debt.
One last note on this novella
THANK YOU for your support of us military families. It’s one thing to support your immediate family during their service, but we’d like to thank you for the general military community (family) support you’ve shown. We benefitted almost a year ago from a free 1-year military sub; we’ve since paid off *our* debts and been able to renew for ourselves. In a few days we’ll be cutting you a check to go into the kitty for another military family’s free sub. Keep up the great work – thanks to the whole BHM team for all you do!
December 27th, 2008 at 2:26 pm
Melonie, you’re seeing the same things I’m seeing as far as the magazine business goes. BHM will prosper in hard times because we are not just an advertising-delivery vehicle like most other magazines. When the current issues of other magazines arrived at BHM (we subscribe to a bunch), I pointed out to my staff that BHM was larger while all these other magazines were smaller. The conclusion is obvious for people like you and me.
We’re glad to help the troops. Any military person who has a relative who is a current BHM subscriber is eligible for a free one-year subscription. We have hundreds of military who have taken advantage of this offer. It’s our privilidge to do this.