How to choose a fundraiser that actually works
A sponsor recently asked how they got paid for doing a sale with us. Although the answer may have been obvious for some, it brings up a fundamental question. How do we select the best fundraiser for our school?
We offer 2 types of fundraising programs. One is where sellers have a product in their hands to show people. This is referred to as a direct sale, or point of sale, because a product is exchanged for money on the spot.
The second type is a brochure sale. Instead of having a product to show, customers place an order for items in a brochure and the student then delivers the items after being shipped to the school. Here are the primary differences between brochure fundraisers and point of sale transactions.
How Product Fundraising Works
Groups can purchase products up front at a discounted price, then turn around and sell it at retail. The difference is their profit. Products are purchased and delivered before the kickoff. Although many schools opt to obtain a purchase order, then pay for the product afterwards. Once the group has sold the items, they make back their investment plus the profit.
The Advantages to Selling Products
One advantage to selling products is sellers are able to show them to a potential customer. This allows the buyer the opportunity to see the item prior to purchasing. Another benefit is, once a sale is made, sellers don’t have to go back a second time to deliver the product. Students also find a candy bar fundraiser or selling lollipops easier to sell because the cost is lower, thus more people can afford to buy. Product fundraisers seem to work well with smaller groups.
Why Consider a Brochure Fundraiser?
Brochure fundraisers allow groups to present items found in a sales catalog beforehand. Sellers use an order form to collect orders and a money collection envelope to collect money. The price of each item shown in the brochure is the retail amount. The school is then billed by the company at a lower wholesale price for items that are submitted to the company for processing. School keeps the difference between the retail price paid by the customer and the wholesale price paid to the company.
Brochures typically offer more diversity compared to selling products, especially when selling the large seasonal shoppers. Schools also like brochure sales because they only pay for what’s ordered by their customers. Plus, the money has already been collected prior to submitting their order. There is no upfront cost to the school for supplies.
When it comes to picking the best fundraiser for your school, we encourage you to consider all of the options.