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Speaking of economics. There are an estimated 93,538 people living in Bradley County this includes infants, adults and a sizeable elderly population. The Cleveland Daily Banner reports a daily circulation of 16,277. I would argue that the number of paid subscriptions is actually much lower--probably around 11,000, with Wednesday and Sunday papers being the best days of circulation. However, suppose 1 in 10 people living in Bradley County purchase the Bradley News each week for 50 cents. The potential customer base, which is probably unattainable at least initially, is 9353 paying customers. If the Bradley News could reach the target number within a year, the once free paper would generate $4676.50 each week for the company. That would be $243,178 potential dollars annually in revenue. (Keep in mind indications are they only plan to publish 50 times a year which would also reduce revenue). If paid advertising could simply equal the cost of production, which is also doubtful but possible, and operational costs (telephone, rent, taxes, electricity, workman's compensation, employee benefits, social, security, etc...), were held to roughly $63,178 dollars--which is probably a fair assessment. There would be $180,000 left to pay for salaries. I have no idea how much was invested on the front end, but considering there would be about 10 employees needed to operate a small newspaper (reporting, editing, advertising, layout/graphics, delivery) the average salary would be about $18,000 a year for a full time job.
From a big picture view I simply do not see a large profit margin for ownership or investors in weekly newspapers other than a daily (Cleveland Banner) or monthly paper (The People News) and clearly this venture might be a high risk investment. Now Art Newman may have that kind of money to lose, but unless advertisers flock to reach the 9,000 plus potential readers in droves--they would have to ask themselves with an economic downturn and declining newspaper sales if that risk is a good return on investment. Radio, TV and the Internet would probably reach more people cheaper and more efficiently. My friend Jennifer Demuth at www.bradleyondemand.com probably has a novel way to reach thousands. Believe this or not, I really do wish the Bradley News good luck on their latest endeavor, but many are already anticipating their demise. There are a few people, probably the Riviera or Monaco visiting types who specialize in off-shore betting, laying odds on the closure date as we speak. Let me caution you, Susan Shelton is one tough and resourceful lady. She might just figure a way to pull this off. I have to go; my bookie is on the other line. I love Vegas. Now show me the money. Happy Birthday Mom!
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