X-Message-Number: 13939
Date: Tue, 13 Jun 2000 16:44:46 -0500
From: david pizer <>
Subject: The SINGLE Cause of Alcor's Membership Decline Identified - at

Ever since Saul Kent brought the grave matter of the decline of cryonics to
our attention, I have been trying to find the main cause and how to present
evidence that it was the cause.  I consider growth as the single most
important thing we can do at this time to protect our present patients. 

As most of us sometimes do, I had an "educated" hunch as to what the cause
was.  My hunch was that the main cause of the slow down in cryonics growth
was the implementation of the Alcor Suspension Pricing that was done in or
around 1993. At that time I was on the board and I was the only director to
vote against it, and for good reason.  The high costs Alcor would charge
would cut into the volume so badly, that the loss of volume (even at lower
prices) would cost Alcor more net money (money that is left for Alcor after
expenses) than the higher prices (on what would become lower volume) would
generate.  Not only would we lose potential members, not only would good
people die and not get frozen, but Alcor would suffer in net finances.

It was in a post from Mathew Sullivan that the revealing figures hit me
that my hunch had been right! 

Alcor was growing like crazy through 1992.  Then in 1993 about the time
Alcor came up with this bad plan that growth came to a screaching halt!
After that time, Alcor got into a situation where they were always tight on

Here are Mathew's figures again, you be the judge:

>Year/Members/Added/% Increase









1993 Alcor implements its present pricing policy









I think this should give some degree of proof that the pricing plan Alcor
adopted in 1993 is the cause of the halt in growth. 

In addition I will add, that if Alcor had *lowered* the costs in 1993
instead of adopting this plan, perhaps we would be well on the way to the
projected 4,000 members and 400 patients in just a few years that the board
felt we were on track to hit back in 1993.

It is not too late to recover.  All  Alcor has to do is adopt a more
reasonable price plan and the business will follow.  This will make Alcor
more net money in two proven ways: (1) The increased volume (even at much
lower prices) will help to generate more net money at the end of each year;
(2) The increased volume of members and suspensions will create an economy
of scales that will lower Alcor's present costs.

In addition to posting this on CryoNet for discussion, I will copy the
Alcor Board so that they may consider this.  

Dave  Pizer

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