This Fed-Ex report details some of the potential revenue implications that moving the NJATC workbooks to an online solution would provide. The basic premise of this report is the fact that we currently have costs associated with printing and that the delivery of workbooks in any online solution would also incur costs. (Blackboard was used in this comparison as they are arguably the most expensive and the one into which we have the greatest insight with respect to costs.) Part I of this report attempts to compare the two options with our traditional pricing model and Part II explores an alternative pricing structure.
ATP proposed helping the NJATC to create an “NJATC branded LMS” with the Blackboard Technology Solution. They stated that they intended to make a $ 250,000 commitment to the project to fund the creation of an LMS structure skinned to the NJATC’s specifications and provide the access to 4000 students for a period of 3 years. Also included in the proposal was the population of Content for a “Content Management System” for all ATP books that the NJATC utilizes. (ATP also indicated that they would benefit from this LMS implementation in that they will also be populating content on textbooks that the NJATC does not use. Access to this information will be through a URL which is different than the URL that is used to access NJATC courses.) When speaking to Jon Gosse after the original discussion; he stated that the further breakdown of the expenses associated with the project included the expense of some ATP staff who would be dedicated to the implementation of this new LMS. He indicated that the direct “Blackboard cost” was around $185,000.
Table 1 (Calculated per Student Cost on a Yearly Basis) shows this information broken down into a “per student per year cost” as this is the way that Blackboard charges for access. (Blackboard charges per student without regard to how many classes a particular student accesses on their servers.) This table shows that a per student cost can be in the range of $15.42 to $20.83.
Using the per student per year cost of access to the Blackboard LMS and NJATC printing costs a comparison can be drawn between the two delivery methods. Table 2 (Financial Comparison of Delivery Methods) provides this comparison based on the higher ($ 20.83) per student per year costs. This report shows that by lowering the student’s costs of “workbooks” by an average of 12% the NJATC can increase its profit by an average of 12.91%. When these numbers are extended to represent the 2010 expected levels of apprentices the data shows that the NJATC would benefit from additional revenue of $ 231,064. These numbers are based on the higher per student costs from Table 1. If the lower per student costs from Table 1 are utilized in the analysis the outcome is even more favorable. See Table 3. The NJATC profit under this scenario would be increased by 19.78% while increasing revenue by $ 352,364.
The second half of...