OFRN Old Family Red Nose Registry
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Author Topic: Club Costs.  (Read 1804 times)
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« on: April 30, 2012, 07:58:04 AM »

Most clubs today fail because the cost of hosting a show.
The break even amount is to high if the turn out is low.

i.e. ADBA clubs.
The cost is to high to break even when your entry is $18.  $2. go to EBA and then 50% goes to ADBA (so is it with AADR) so the club is lucky if they get $8.
You have to buy your ribbons from them at inflated price, plus the Trophy and at least 5 champions have to be entered to have the class and if not the club has to pay the difference.
Plus having a limit in size for the rest of the trophies.
There aren't enough local judges in an area so more times then not you have fly a sanctioned judge in.
No help at getting the insurance. Now we have a line on a very low cost rate compared to what other registries costs use to be.

With OFRNR the price for sanctioning is less the 1/3. so out of $15. we would get about $4.50
By having this rate, plus fun classes, food, raffles, a club can make money from hosting shows and hopefully use it to educate people about the breed, promote a positive image for the breed, fight BSL in their area.

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« Last Edit: April 30, 2012, 08:00:24 AM by OFRNR » Logged

Old Family Red Nose Registry Inc. for the Modern OFRN A(p)BT
http://ofrnr.com
Iron Mike
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« Reply #1 on: May 01, 2012, 08:51:05 AM »

I just as soon have you there and participate. Smiley

I don't account cost per person. At the end I do a cost analysis on ratio of expense cost per source per income area.
i.e. cost of food cost then total sales but often I figure that out before hand what profit percentage will be.
Often that is low percentage wise. That is a perk for attendees but still a very profitable area at the show.
Anything left over is given to the people who worked the show or to ourselves if they don't want it.
Raffles are usually a bust out lost except the 50/50 raffle.
If you have to buy the items to be raffled or personally do most or all the donating then it is a cost loss most often but in hope to generate involvement.

This is why vendors are often asked to donate something to the raffle instead charging them for their space to vendor.
Actually vendors take money away for the club, money that could be sent else where.
But vendors also can generate people to attend looking for certain items.
I'm personally not that greedy so this is why we are allowing free vending space.
If later on the vendors turn out where they become to much of a drain from the show then it will be only fair to ask from their profits a donation to be raffled.
We also will ask area businesses to donate for advertisement.

The cost per person only can be figured, is cost per placement in each event.
Then divide the the total cost per class entree into BOS and Best Distance awards to know the total percentage cost.
The best way is to know what the total "Nut" cost is then figure each area income to know if it is a lost, make or break even area.
This is how we knew the weight pull was losing us a $1,000. per show.
Which in turn cause a lost in total revenue from the net profit of the show.

People like different things going on or accessible too, coming to the show then just conformation.
But at the end of the day they will also figure in their expenditures at the show.
People will expect to spend money but can't afford to be bled dry.
This is why entree fee must be reasonable, cost of food, and other things.
Obviously the areas where a club is losing money either needs to be corrected or eliminated.
Keep at least the break even things so the attendees will have the options. Hopefully in time it will add to the bottom line.

If entree fees was the sole source of revenue, most all clubs for other registries wouldn't come close to break even.
The entree fee must be the main source and greatest percentage of generated revenue.

Most often a registry will require paying a Judge and that rate is about a dollar per dog. This is why OFRNR cut is under 1/3.
It shouldn't be about how much money a registry can make but how much a club can make.
Some of the bigger clubs who has more attendees then others but the percentage ratio is the same for all clubs.
The success of the registry depends on the success of the clubs. If the clubs aren't successful, the registry won't be.
People will sooner or later quit hosting shows if they lose money or just break even.

A lot of work for nothing. Often when I help hosted a show, I never got to show a dog. Our members worked so hard at the shows,
I remember Gary Hammond asking me one time if I was okay because how tired I looked after a show eating dinner.
Members were in bed or laying around for the next day or two.
They often didn't get to show a dog.
It isn't much fun for the worker if all they are doing at a show is working long hours and at the end of the day the club lost money or broke even.

That happens at times and the club can write it off as image promotion for the breed and providing a good time for other breed owners but after awhile it will wear them down.
When there is often a lost of revenue, some wells are only so deep and are only willing to take a lost for so long.
Often that source will have to get involved to protect their investment promotion to minimize the lost.
This won't continue over time.
When the club is non-profit they won't be able to do a tax write off. A kennel can only claim so much as a donation on Schedule C form.

When it cost close to 5k to put on a show, promotion investors won't continue to take thousands of dollars as a lost.
A few hundred is a lot different.
A show shouldn't cost more then a thousand dollars, depending on ground rental.
Larger the show becomes, the more the club can indulge.

Bottom line, the club has to have room to breath. After all they are the ones who is making the money and doing all the work.
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