[CQ-Contest] CQ Magazine

[Niswander, Frederick D.]

     One reason comes right from ECON 101 and ACCT 102 (called ECON 2113
and ACCT 2521, respectively, here at ECU).  Let me explain (at the risk
of  overly simplifying something which really has greater complexity).
     The publishing side of each operation (ARRL and CQ) have fairly
high levels of fixed costs (costs that are virtually the same whether
you print one magazine or 100,000).  Within broad parameters you need
about the same amount of people and office space and telephones and
electricity and all that stuff (technical term), regardless of the print
run.  The variable costs are paper, ink, and postage which will differ
by number of copies.
     The variable costs for CQ and ARRL are somewhat similar (QST will
be a little higher because it's a little bigger).  However, the ARRL can
take their fixed costs and spread them over 150,000 or 200,000 issues
whereas CQ has to spread the "same" fixed costs over 30,000 or 50,000
(or whatever) copies.  The total cost of each copy for ARRL is less than
the cost for each issue of CQ.  If it costs less they can give you more
and charge you less.  If CQ is going to stay in business (at least in
the short run), they have to charge more and/or give you less.

Rick, K7GM
Assistant Professor of Accounting
East Carolina University

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