Att 5 Board Brief 2010-26, NCMA Membership Structure Presentation

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Membership Dues:
Analysis of NCMA Dues Structure and Rates
Cambria Tidwell
Director of Operations
7 November 2009
History
Effective Date
Annual Dues for Regular
Memberships
Increase
July 1, 2007
$110.00
$10.00 – 10%
July 1, 2002
$100.00
$15.00 – 17.6%
April 1, 2000
$85.00
$13.00 – 18.1%
January 1, 1997
$72.00
$7.00 – 10.8%
January 1, 1992
$65.00
$5.00 – 8.3%
July 1, 1988
$60.00
$15.00 – 33.3%
1
Market Price Comparison
• Compared to adjacent professional membership
associations.
–
–
–
–
–
–
–
–
–
Project Management Institute (PMI)
Institute for Supply Management (ISM)
National Institute of Governmental Purchasing (NIGP)
APICS The Association of Operations Management
Society of Cost Estimating and Analysis (SCEA)
Association of Proposal Management Professionals (APMP)
National Property Management Association (NPMA)
American Institute of CPAs (AICPA)
American Bar Association (ABA)
• Based on regular membership rates, average of
comparison associations ($174.83) vs. NCMA ($110.00)
2
Market Price Comparison Matrix
Association
Regular
Chapter
Retired
Associate
Student
SIGs
NCMA
$110
NSP
$45
$45
Free
NSP
PMI
$119
$20-$55
$60
N/A
$30
$20
ISM
$150-$355 (avg
$252.50)
NIGP
$175
NSP
$35
N/A
$0
NSP
APICS
$200
$50
N/A
N/A
$25
N/A
SCEA
$55
NSP
N/A
N/A
N/A
N/A
APMP
$100-$125 (avg
$112.50)
NSP
$75
N/A
$75
NSP
NPMA
$100
NSP
$20
N/A
N/A
N/A
AICPA
$200-$395 (avg
$297.50)
N/A
$100
$200
$35
$145-$236
ABA
$125-$399 (avg
$262)
$175
$25
$35-$100
$0
3
Net Effect of A Type Change & Dues Increase
# of members
Regular1
Current
Types/Price
# of
members
Proposed
Types/Price
11,220
$110.00
11,146
$125.00
5,074
100.00
5,074
100.00
Associate1
767
45.00
0
(remove)
Student
440
0
440
25.00
0
(new type)
841
75.00
646
45.00
646
75.00
2,000
20.00
2,000
25.00
18,147
$1,845,1854
18,147
$2,073,1754
Organizational2
New
Professional
Retired
Initiation Fee
Total3,5
4
Net Effect of a Type Change & Dues Increase
•
Without a professional market research effort, we cannot predict
the number of members we would lose due to dues increases or
gain due to the new types available.
• Estimated increase of dues and change in membership types =
$227,990 increase in revenue.
Notes:
1 Majority of Associate members will move to New Professional rate,
plus a percentage of the Regular members.
2 Organizational membership prices are negotiated; prices shown are
estimated average per member.
3 Complimentary members are not shown as they are provided at no
cost and therefore do not affect the revenue calculations.
4 Affinity program $ not shown.
5 Projections do not include the Member Pro Vita category, as of 26
Oct 41 people have become MPVs.
5
Points of Discussion:
• New Professional Type – limit at age 30 or 35?
– 9.7% of membership age 30 or under, $58,000/yr median
salary
– 15% of membership age 35 or under, $63,000/yr median
salary
– Average age of current Associate members – 31.5 y.o.
• Retired Type – increase to $50 or $75?
– Cost to maintain member for one year ~ $65.
– Benefit for years of membership?
6
Points of Discussion:
• Student Type – increase to $25?
– Potential lack of perceived value.
– Current association trends.
Association
Student
NCMA
Free
PMI
$30
ISM
$0
NIGP
$0
APICS
$25
SCEA
N/A
APMP
$75
NPMA
N/A
AICPA
$35
ABA
$25
7
Points of Discussion:
• Rate increases in general – potential loss of
members?
– No significant decline in member numbers in the last
increase (effective July 1, 2007).
– No significant increase in renewal rates prior to the last
increase (prior to July 1, 2007)
– Lapsed member survey does note price as the #1 reason
to not renew membership.
8
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