A membership fee

It costs more than it gets back

It costs $40,000 a month and gets back $12,000: $28,000 a month worse off.

• It turns away 1,600 of 4,000 shoppers who would have bought each month.
• It costs the people going through it 200 hours a month, 80 of them from people who do not get through.

This is a worked example with illustrative figures, not data about any real person or company. Change any of them in the calculator and the answer changes with them.

How this answer was worked out

Every formula is written out on the formulas page.

What the calculator asks you

• How many steps, and how many people arrive
• What each wanted person is worth, and the share each step turns away
• The share it is meant to stop, what each costs, and the share each step stops
• What a step costs the people going through it
• Any fee paid by those who get through

Related

• A sign-up formWorked example
• An account required before buyingWorked example
• Checks at a checkoutWorked example
• A minimum orderWorked example
• A convenience fee at checkoutWorked example
• A paywallWorked example
• The cost of barriersThe calculator this example comes from
• Before you decideA checklist of what is worth checking first