Let your goals be your guide
Your organization’s financial goals are the number one criteria for your fundraiser selection. Be sure to select a fundraiser that will meet or exceed all of your goals. Don’t settle for generating less than what your group needs just because it’s the same fundraiser you’ve always done. Consider all the possibilities and do the math first to narrow your choices to the most productive ones.
Revenue is king
Remember that higher revenue is directly related to a higher net. Maximize your results by selling higher priced offerings or using a quality catalog that will inspire a multiple item purchase. Make sure your fundraiser offerings focus on getting the highest possible total sale from each customer.
Percentage to organization
Your gross margin is the percentage of the selling price that you get to keep. As discussed previously, bigger is not necessarily better. Pick the right product and make sure you’re getting the best percentage deal that you can. Don’t be afraid to shop your business around to several suppliers. A bidding war can be a good thing for your group.
Percentage isn’t everything
Percentage to organization is important (don’t get me wrong), but so is the perception of the offering by both the potential buyer and the seller. A higher percentage profit sometimes means either lower quality goods or overpriced ones. The percentage doesn’t go in the bank, just the net results.
If your revenue per customer is lower due to poor quality or lessened reception, then you’ve lost money, not made more. The bottom line is that extra profit percentage points aren’t because one supplier is more generous than another. Once everything is factored in, you’ll find that extra percentage is made up somewhere along the line.
Net to organization
Revenue times percentage less expenses determines your net results. You want to maximize your revenue to maximize your net. Be sure to get the lowest cost on your product and watch out for hidden expenses. Get everything in writing up front.
Determine how much work a potential fundraiser will be. Sales with delayed deliveries are more labor intensive than those with immediate deliveries. Heavier items are also more work. Certain food items like cookie dough and cheesecake may require special handling to keep them cold until they reach the customer.
Top quality goods sell better, period. Inspect the sample items carefully for flaws. Compare them with catalog/sales material descriptions. If they’re food items, check the weights and the quality of the packaging. Freshness counts.
Price versus retail
How attractive is the unit price of the items being sold compared to comparable items in nearby retailers. Put yourself in the customer’s shoes and evaluate the price points carefully. No one wants to overpay for something.
Ease of doing business
A reputable supplier should be easy to do business with. They should have an 800 number, fast turnaround on documents, quick delivery of samples, no upfront monetary commitment, clear descriptions of all potential extra charges, and a friendly attitude. Why do business with jerks?
Average unit price
Generally, a higher unit price will produce more revenue and a greater net to your organization. A catalog of items with a high average price will do better overall than a catalog of lower priced merchandise, within reason of course. You need to be careful though that the supplier hasn’t inflated the average unit price to an unrealistic level. Also, make sure that the product price points are appropriate to your target market.
Click Here for Selecting the Right Fundraiser – Part 4
Click Here for Selecting the Right Fundraiser – Part 2