Fundraising Products and Selling TipsSelling fundraising products can be very effective. Sometimes called “order taking” this method offers groups a no risk and no money up front idea. The best part is that you don’t have to make a financial commitment before you know how much your group can sell.
Generally you should have one to two individuals serve as chair people to oversee all of the details for your effort (determining the items, working with the company or manufacturer, coordinating delivery, organizing the volunteer team). The company or manufacturer will send you brochures to take orders. Each member collects orders and payments for your organization’s supports. You can collect money at the time of ordering or upon delivery to the customer. Important Tip: Make sure that your order takers understand that if people don’t pay for their order that they are responsible for paying the organization back. Remember, this is a fundraiser! Once done, the orders are gathered and sent to the company or manufacturer. The great advantage to this type of fundraising products effort is there usually is a wide selection for your supporters and there is no risk of over ordering. The disadvantage of order taking is that is may take more time (for selling, shipping, etc.) and requires more planning and coordination. Profit? How Much?There are literally hundreds of fundraising companies and manufacturers out there to choose from these days. That’s a good thing! Depending on the product and the company, your group can make between 25-65% profit. Some companies are flexible with their profit markup. Many companies offer free shipping if you meet their quota which typically is between $500-$1,000 in retail sales. Other Options and Fundraising Tips Many companies offer a pre-sorting option by team or person which can save you valuable time. Typically, there is an additional charge for this service which can range up to 5% of your total order. Most reputable companies also offer an incentive or prize option as well which can help motivate your participants. Typically, a company may charge in the 3% range of your total (i.e. 50%-3% = 47% profit). The prizes are usually age appropriate. Sometimes, they are not the highest quality but for kids, as we all know, sometimes that fact just doesn’t matter. It is the thrill of “earning” or “winning” something. Secrets to Success? Shh…I’ll share the selling tips secret with you…it’s not really a secret but more common sense. Consider the math when making your decision on the product. Number of motivated sellers x significant profit margin x unit price point = success! In other words:
That’s it! Remember that quality counts when selling fundraising products and no one wants to buy overpriced “junk”. Another good idea is to offer a secondary product (in addition to perhaps catalog based products). A really good one is two-for-one pizza discount cards. An example of that profit is for each $10 sale your group will typically receive $8 per sale! It's Simple Math Quantity and Quality – consider this scenario: You are selling those trendy custom silicone wristbands (which are pretty cool) for $2 each. With a 50% mark up you will need to sell 2,500 wristbands to raise $2,500. If you were selling two-for-one pizza discount cards for $10 each and getting an $8 profit then you would only have to sell about 313 cards. Hmmm, you do the math. The custom silicone wristbands create great school and organizational spirit but probably should be an “add on” idea to a more robust program in which you don’t have to sell ridiculously high quantities to achieve your goals. Work smarter…not harder! Realistic Profit Margin So let’s talk about profit margins. Ideally you should aim for greater than a 50% profit margin for your product sales. Why? Because you want to give your customers a good value and you want to earn enough revenue to meet your goals. You should shop around for the perceived value of your product. If you are selling cookie dough for $25 a tub and a local business sells it for $10, your customers will probably not be motivated to purchase your product…even if you are a deserving group! Go Team Go! – Energized and Motivated Sellers For schools, sports teams, youth groups, cheerleaders – you name it - start with a high energy kick off meeting, assembly or rally. Describe your goals and how everyone’s participation really matters. You can do skits, play fun music or think of something interactive to get everyone involved. Make sure if you offer incentive prizes that they are meaningful to the participants. Cheap trinkets or items that kids don’t find value in won’t get you very far in motivating the troops! Again…do your homework for the best choice for your group! Return from fundraising products and selling tips to Fundraising Strategies |
