The pros and cons of taking orders first.
Picking the right program can be daunting, considering so many choices exist. When deciding how to raise money, you should first ask what type of sales campaign you should consider.
There are many ways to classify fundraisers, but the two types that will be considered here are brochure and product selling.
With a brochure fundraiser, schools can present several options to potential customers. People will make purchases once they've reviewed the choices, and the seller delivers the items to the customer within a few weeks.
On the other hand, groups can order products up front at a discounted price, then turn around and sell them at retail to the end consumer. The difference between the retail and discounted or wholesale prices is the group's profit. Choosing what's best for your group may come down to the following:
- Previous experience
- Group Size
- Socioeconomic Factors
- Competing Groups
- Understanding your students and parents
Weighing the advantages and disadvantages of each type will help you make the best choice for your organization.
Advantages of a Brochure Fundraiser
Money is collected before the merchandise is ordered, so no up-front money is required to get started.
- Buyers typically have a wider variety of items to choose from.
- Merchandise arrives already sorted by the seller for easy distribution.
- Works well with medium to larger size groups.
Disadvantages to Brochure Sales
- Sellers don't have a product to show; therefore, customers may be apprehensive about buying without seeing it first.
- Requires a 2-step process: 1.) Students must first collect the orders and money, and 2.) Then go back to their customers and deliver the merchandise.
- Shipping charges can come into play for smaller groups who cannot meet ordering minimums.
Advantages of a Product Fundraiser
- Showing the actual item for sale to the potential buyer may make it easier for some to decide.
- Point-of-sale transactions allow students to collect money and hand the customer their item simultaneously.
- Items are usually less expensive and thus more affordable for some people.
- Works well for smaller groups.
Disadvantages to Product Sales
- Deciding how much to order upfront can be challenging.
- Groups that order too much have to deal with different products.
- Harder to track sales and manage with larger groups.
- Occasionally, there is an issue with students not selling or returning the items initially distributed to them.
Unless you already have previous sales history or experience, once you've carefully considered all your options, deciding which type of sale will work best for your organization may come down to sheer gut instinct.
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.