Tuesday, November 13, 2007

Musings On COSI

I have been commenting on a post on Swampbubbles.com concerning COSI. I have been trying to come up with a feel for the numbers. This might be my last word on the subject:

Looking at the figures for 2003, 2004, and 2005, and trying to determine the numbers of visitors needed to break even I came up with this method: 1. Take the Total Expenses from Line 12,Form 990 for the years 2003, 2004, and 2005; 2. Subtract the Membership Fees received (Form 990, Part IV-A, Support Schedule) for 2003, and 2004. For 2005 use Form 990, Part I, Line 3; 3. Subtract the Gross Sales of Inventory, less returns and allowances (Form 990, Part I, Line 10a. The resulting figure is divided by 33 (2 adults at $9.00 plus 2 children @ $7.50, or $33). The resulting figure is the families that paid full price. Add to this the memberships for each year divided by $60 (annual fee). This gives the number of hypothetical families with memberships (two children and two adults). Add this number to the number of families who paid full price. Multiply this number by 4 for each year to give the number of "visitors" (if members only went once) who would be needed to meet the total expenses for COSI each year. The number who actually visit fall far short each year. Gift givers with "deep pockets" are needed each year to keep COSI afloat. The public just isn't attracted enough to go more than a few times.

Here goes: 2003, $4,051,027-$331,887(memberships)-$434,002 (gross sales of inventory, less returns and allowances) divided by 33 x 4 + 5531 member's families = 105,081 families x 4=420,324 visits needed to break even.

2004, $4,142,184-$308,252(memberships)-$395,025(10a, gross sales of inventory, less returns and allowances) divided by 33 x 4 +5138 members' families=109,342 families x 4=437,368 visits needed to break even.

2005, $3,791,662-$293,786(memberships)-$327,964 (10a, gross sales of inventory, less returns and allowances) divided 33 x 4 + 4896 members' families=100,956 familes x 4=403,824 visits needed to break even.