Lifetime Value of a MemberLifetime Value of a Member

United States Power SquadronsUnited States Power SquadronsNational ConventionNational ConventionDallas, TexasDallas, TexasFebruary 19-24, 2008February 19-24, 2008

Lifetime Value of a Member

Sales Gross Margin

National Dues $1,263,185 100.0%

Education SalesLess: Cost of Sales

$1,054,467 ($476,784)

Subtotal: $577,683 54.8%

Ships Store SalesLess: Cost of Sales

$115,585 ($77,983)

Subtotal: $37,602 32.5%

TOTALTOTAL $1,878,470$1,878,470

Average 12 Month Average 12 Month MembershipMembership

41,92041,920

Membership Trend

51,476 51,373 51,509 51,89950,144 49,471

47,28346,380

44,244

42,37340,673

30,000

40,000

50,000

60,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

Mem

ber

ship

Total Membership Numbers

Membership Trend

-103 -136

390

-1755

-673

-2188

-903

-2136

-1871-1700

-3,000

-2,500

-2,000

-1,500

-1,000

-500

0

500

1,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Mem

ber

ship

Membership Decrease by Number Lost

Recruiting/Retention Budget

Desired Net Gain of 5%Desired Net Gain of 5% The current loss rate is 4%, therefore we want to target

a gross growth rate of 9% to achieve a net gain of 5% Calculating Target Budget for Recruitment and Calculating Target Budget for Recruitment and

RetentionRetention Average Membership x Gross Growth Rate x Annual

Value of a Member 41,290 x .09 x $44.81 = $169,000