[Lnc-business] Email Ballot 2016-07: Increase Branding Budget 2

[Alicia Mattson]

I'm not yet voting, but I'm leaning towards voting no.

I'm fine with breaking even on branding materials that we sell, but I'm not
seeing the rationale for selling them at a $50k loss just because we have
extra money for now.  The volume we're selling now argues that they're not
overpriced, and we can barely keep up with the order volume as it is.

Let's not let the money burn a hole in our pocket.  An extra $50k could go
towards paying off our mortgage before the balloon payment comes due.  I
don't believe we were able to make the policy-required extra mortgage
payment last year.

I don't understand the message below that the $50k would pay for
maintaining a larger inventory.  The budget does not require that at all
times during the year the branding expenses be <= the branding revenue.  We
always buy inventory before we sell it, but then we sell it and the revenue
comes up to match/exceed the expense.  The budget just sets expectation
that we'll at least break even when it all shakes out at the end of the
year.  To say that a temporary inventory surge needs a budget adjustment
suggests that at the end of the year we're planning to have overstocked
$50k more materials than we could sell.  I think Wes has sense to know that
JW materials will be hot until about November 8, and then demand will drop.
I suspect he won't be re-ordering for large volumes to arrive right before
the election, and will aim to minimize leftover inventory that won't sell
as well later.

-Alicia



On Sat, Sep 17, 2016 at 6:26 PM, Tim Hagan <timhagan-tyr at yahoo.com> wrote:

> Yes, instead of being a fixed amount, the Brand Expenses would be equal to
> $50,000 more than the current Brand Revenue at any time. So, as more income
> comes in for Brand Revenue, the budget for Brand Expenses will
> automatically increase. The $50,000 allows for unsold inventory and labor.
> The staff labor spent on handling the Brand Material is charged to Brand
> Expenses, which has been running 13% staff salary and 87% materials. The
> effect will be to treat Brand Material as a project.
>
> The numbers for these toward the end of August were $199,919 for 26-Brand
> Revenue, and $231,542 for 55-Brand Expenses.
>
> Tim Hagan
>
> ------------------------------
> *From:* Joshua Katz <planning4liberty at gmail.com>
> *To:* lnc-business at hq.lp.org
> *Sent:* Saturday, September 17, 2016 4:58 PM
> *Subject:* Re: [Lnc-business] Email Ballot 2016-07: Increase Branding
> Budget 2
>
> Can someone clarify for me the effect of this?  Will the expense line be
> dynamic, constantly changing as the actual revenue changes?
>
> Joshua A. Katz
> Westbrook CT Planning Commission (L in R seat)
>
> On Fri, Sep 16, 2016 at 12:31 AM, Alicia Mattson <agmattson at gmail.com>
> wrote:
>
> We have an electronic mail ballot.
>
>
> *Votes are due to the LNC-Business list by September 25, 2016 at
> 11:59:59pm Pacific time.*
> *Sponsor:*  Sarwark
>
> *Motion:*  The budget for 55-Brand Political Materials Expense shall be
> $50,000 higher than actual revenue for 26-Brand Political Materials.
>
>
> -Alicia
>
>
>
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