Why Fundraiser Profit Percent Shouldn’t Matter

News flash - your profit percentage is overrated.

Many sponsors significantly emphasize selecting a school fundraiser on how much profit percent they'll receive. Once they've weighed the pros and cons of several fundraising companies, in the end, it often comes down to the company that offers a higher percentage of the sales.

Unfortunately, this may be a short-sighted approach for many reasons. Instead, focusing on how to make more money should be at the top of the priority list. So, in the end, what usually wins out, obtaining a higher fundraiser profit percentage or attempting to find ways to improve sales? You may be surprised by the answer.

Here are some things to consider before making your decision:

Quality vs. Quantity

You can make 100% profit, but if people don't want what you're selling, it won't matter. Many companies offer cheaper merchandise in exchange for a higher profit. You may make a higher profit but at the expense of disgruntled buyers who will think twice about supporting your future sales. To take this point further, one of our brochures offers a variety of designer bags that can be personalized. These bags are more expensive, but they're strong sellers. Buyers want them, and they are good quality. Furthermore, although groups make a lower profit percentage, they make more money on the bags because of the higher price.

Motivational Prize Programs

Your students are your greatest asset. If they're excited, they'll drive sales more than anything else you can do. Prize programs should include incentives at the lower levels that help generate interest and exciting rewards at the higher levels to encourage students to keep selling. For instance, our magic show prize program requires students to sell five items to gain admission to an exciting magic show. Higher-level privileges include being an assistant magician on stage, learning and performing a magic trick in front of their peers, or even participating in the show's grand finale.

See our prize programs.

Maximizing Fundraising Sales

Instead of focusing on how much profit you can make, you should instead concentrate on how you can bring in more sales. For example, how do you plan to promote your sale? You can show a promotional video during your morning announcements, incorporate prize drawings, post information about your sale on Facebook, and send reminder notes home to your parents.

Receiving a higher profit often leads sponsors to falsely assume that their sale will be successful regardless of their efforts. We've seen this assumption backfire many times, and regrettably, the students end up paying the price for lower-than-expected sales.

See our brochure fundraisers.

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.