How to avoid the common sales myths.
Since we started working with high school fundraising groups several years ago, we've learned many things about our sponsors. Our primary objective is to help groups reach a predetermined sales goal. And while we've encountered sponsors that had previously experienced success, we found many others who hadn't.
What drives us as a fundraiser company is to focus on helping previously unsuccessful sponsors achieve good results. And as we explore deeper into why they fall short, we learn why. Some of the things they think they should be focusing on are good and are based on fact, while others, although they seem logical, are based more on theory or assumption.
Regarding catalog sales, there are two basic myths many high school sponsors seem to focus on. One, they tend to overemphasize the importance of finding the right sales brochure, and two, they minimize the prize program's value.
Your students must believe in what they're selling; however, as the sponsor, you still need to do the convincing. It's been said that a properly motivated salesman can 'sell snow to an Eskimo'. Unfortunately, sponsors seem to falsely think that their students will intrinsically buy into the group's need for money, thus automatically making sales without external motivation.
Learn how to get high school students engaged in fundraisers
If your group isn't properly prepared and inspired to sell, your catalog won't matter because few potential customers will see it.
Rather, here are two things that you should consider that can help you experience an effective high school fundraiser:
1. Have a Fundraising Plan
In reality, the sales catalog should be one of the last things sponsors decide on when planning a high school fundraiser. Most people think they'll make a lot of money if they can find the perfect catalog with the right items to sell. And to top it off, if the brochure is excellent, people will flock to buy it. The reality is very few catalogs sell themselves. One must first establish a solid fundraising foundation by having a well-designed sales plan. Here are five questions that must be considered before choosing your catalog:
- How much money do you need to reach your fundraising goal?
- How many students do you have in your group?
- How much will each student need to sell to achieve the group's goal? (The average profit per item found in a catalog is about $5.00)
- What incentives are you willing to offer to encourage students to sell? (As much as you would like your students to be inherently inspired to make sales for the good of the group, for the most part, they tend to be motivated by extrinsic rewards)
- Is your individual student sales goal reasonable? (One word of caution when goal setting. Just because you have a goal doesn't mean it's realistic. Perhaps you'll need two fundraisers to reach your objectives. The higher your goal, the more likely you'll discourage your students from selling. We've found that asking high school students to sell ten or more catalog items over two weeks is optimal. This is less than 1 item sold per day. You can always offer additional incentives to encourage students to sell above 10.)
Use our fundraiser goal-setting guide to set your student goal.
2. High School Students Need Additional Incentives
We've already discussed that one of the biggest mistakes high school sponsors make is thinking they don't need incentives when using a fundraising catalog. It's common for sponsors to think that the basic prize program is enough. They've taken a step in the right direction by seeing the need for extrinsic motivation; however, the basic prize plan offered by most fundraiser companies is never enough, especially for high school students.
Some are even willing to compromise the quality of their prize program even further in exchange for a higher profit percentage. Many sponsors make the mistake of focusing on negotiating a higher profit percentage while forsaking the need for a solid promotional plan.
Learn why fundraising profit percentage is overrated.
Regardless of the purpose, most students will respond to a sponsor willing to use good incentives. Even when dealing with a lower profit percentage, many sponsors have found that effectively promoting their sales makes the group more money. On the other hand, sponsors receiving a higher profit with no prize program tend to be overconfident and complacent. They feel they'll already make more money because they start with a higher profit percentage. These sponsors fail to realize that you can't take percent profit to the bank; you take money.
Once you have these things in proper perspective, it's time to implement your game plan. In the end, it probably won't matter which catalog you choose. Your high school fundraiser will most likely be successful.
Author Bio
Clay Boggess has been designing fundraising programs for schools and various nonprofit organizations throughout the US since 1999. He’s helped administrators, teachers, and outside support entities such as PTAs and PTOs raise millions of dollars. Clay is an owner and partner at Big Fundraising Ideas.
