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