2008 Product Cost Summary ($165)

The Kohl Advisory Group has compiled product cost averages based on 20 actual clients it assessed in 2006 through the first half of 2008. The supporting detail for these Average Cost figures, by major cost element and participating client, are provided in this 75-page highly informative document. Each of these clients received a comprehensive (4-6 month) Activity-Based Cost Assessment from the Kohl Advisory Group.

Lending products addressed in the 2008 Product Cost Summary include: Classic Credit Cards, Premium Credit Cards, Awards Credit Cards, Signature Loans, Unsecured Lines of Credit, New and Used Vehicle Loans (Direct), New and Used Vehicle Loans (Indirect), Recreational Vehicle Loans, HELOC's, 2nd Mortgages Fixed and 1st Mortgages.  Deposit Products addressed include: Regular Checking, Interest Checking, Regular Shares, Money Market Accounts, Regular CD's, and all IRA's.

Lending Product Activities and associated costs for each loan type have been summarized into the following major cost elements:

1. Direct Cost to Take Applications and Underwrite Loan
2. % of Loan Applications that Result in Booked Loans
3. Application Cost per New Loan Booked (#1 divided by #2)
4. Direct Cost to Complete Paperwork and Fund Loan
5. Marketing Expense per New Loan Booked
6. Total Cost to Originate a New Loan (#3 + #4 + #5)
7. Estimated Average Life of a New Loan in Years
8. Total Loan Origination Cost Recognized per Year (#6 divided by #7)
9. Total Collection Cost per Year per Existing Loan
10. Total Non-Collection Cost per Year per Existing Loan
11. Annual Provision for Loan Loss Expense per Existing Loan
12. Total Direct Cost per Year per Loan (Sum of #8 through #11)
13. Indirect Operational Expense (Overhead) per Existing Loan
14. Total Expense per Year per Loan (#12 + #13)

Deposit Product Activities and associated costs for each addressed deposit product have been summarized into the following major cost elements:

1. Cost per Year per Depository Account for Processes Primarily Automated
2. Cost per Year per Depository Account for Processes Primarily Manual
3. Marketing Cost per Year per Depository Account
4. Less: Total Fees & Other Income per Year per Depository Account
5. Average Dividend Cost per Year per Depository Account
6. Total Direct Cost per Year per Account (Sum of #1 through #3 less #4 + #5)
7. Indirect Operating Expense (Overhead) per Depository Account
8. Total Expense per Year per Account (#6 + # 7)

Results of all loans and deposit products are portrayed in chart form by major cost element. In addition to the average, the range (average of 3 highest and lowest) are also presented.

The 2008 Product Cost Summary is provided on a "satisfaction guaranteed" basis. If you are not 100% satisfied, simply return the book within 10 days in lieu of paying the accompanying invoice. Order Now.