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Why Fundraiser Profit Percent Shouldn’t Matter

By Clay Boggess on Apr 11, 2013
Why Fundraiser Profit Percent Shouldn’t Matter

News flash - your profit percent is overrated

Many sponsors place a major emphasis for 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 percent 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 any of 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 5 items in order to gain admission to an exciting magic show. Examples of higher level privileges include getting to be an assistant magician up 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 the effort they put in. We've seen this assumption backfire many times and regrettably it's the students who end up paying the price for lower than expected sales.

See our brochure fundraisers

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