Neil Clydsdale reported to us that there was a problem with delivery of the magazine containing the ballot to Australian Members. Apparently there was a postal strike or slowdown which caused your magazines to take over two months longer to reach everyone. Because of this, we have held open the ballot period and will still accept your vote. Because of this problem, we have adjusted things this time so that you don't have to return the ballot card to vote, you can email or call the office to record your vote as well.
Our Nominating Committee has been considering alternatives to improve the voting process for some time. With our current structure, we haven't found a better solution than the ballot cards mailed with the magazine which balances costs, best service to our Members and provides a reasonably secure election process.
We are allowed by Oregon law and by our Bylaws pretty wide latitude in how the elections are run. We can allow online voting, voting by email, phone or by mail in card. One advantage of the mail in card system is that the card provides us some security in that a person wishing to manipulate the election would have to incur some costs to duplicate the cards and mail them into the office. Voting electronically, by email or phone generally lower the cost barriers to fraudulent activity, so they generally require higher security measures to be employed. Those higher security measures generally cost more money to implement and we've been trying to hold our costs down while working to improve the finances of the Club.
As our financial picture turns around and we have a bit of a budget for such projects, improving and expanding the Member's Area, along with possibly implementing a controlled method for Members to vote, but not allow more than one vote per Member, is on our list of projects to consider.
As far as an electronic version of the magazine, that is a bit of a financial catch twenty two for us, too. Each issue of the magazine costs about $14,000.00 to produce. That includes publishing, printing and mailing a little over 3,000 copies. The difficulty in cost comes because of the economies of scale. If we reduced our paper magazine count by, say, 300 and converted those Members over to electronic delivery, we would save the actual postage and paper portion of that $14,000 cost, but our per unit cost to print the other 2,700 copies would be a bit higher. The shorter production run you do in a printing environment, the more expensive each unit costs you and at 3,000 our run is so small that we're on the ragged edge of being economic. Our actual net savings by reducing our press run from 3,000 to 2,700 would be only a few hundred dollars.
We know that eventually we'll need to offer electronic delivery and probably somewhere around five years from now we'll probably need to stop paper delivery altogether. In the meantime however, a surprisingly large number of our Members prefer or are only capable of receiving paper magazines. While that is the case, it is not going to make economic sense to reduce our count of paper magazines produced. I could see us offering an additional service of sending or providing you with an electronic version of the magazine at the same time as we send you a paper magazine.
Our marginal cost of providing the electronic copy we get in the Member's Area or emailing it to you would probably not be much and would enhance your experience. You'd have the electronic version sooner than the mailed version, but would still get the paper copy later. This is another project that we can probably begin considering since our finances are about at a breakeven now. If you wanted to forgo the paper magazine, we could probably offer the option to go electronic, still print the magazine but add it to our stock of back issues for sale, saving the postage, too. Because of those economics though, we wouldn't be able to offer reduced dues for going only electronic on the magazine.
If things go well next year, we should have a reasonable profit and can start things moving on some of these projects, including electronic voting and production of electronic versions of the magazine.
Thank you for your interest, we're sorry that your magazine got delayed, but we definitely want to make sure that your vote is received and recorded.
Pete.