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Announcing: High Profit Fundraising for Your Fundraising Team

Guest post by: Neil Howe

Article Overview: High profit fundraising is a balance between profit and amount per sale. It is important to find a product that is in demand that has a high dollar amount in profit, rather than just a high percentage. Take a look at the examples here to better understand which fundraiser to choose for your fundraising team.

Announcing: High Profit Fundraising for Your Fundraising Team

High profit fundraising is key in this tight economy. It is getting harder to sell, so you need to try and sell a product where there is a great return for your effort. Even though many fundraising companies say you get 90% profit, you need to ask yourself on what?

Getting 90% profit on a $3 item means you make $2.70 profit. Good deal for the product you sell, but you have to do a lot of selling if you want to make any decent kind of money for your fundraising team.

On some of the higher value items, you may not make as big a percentage of the cost of the product, but as you will see from the example with The LifeTime Travel Book, you stand to make more money with less selling.

The Lifetime travel book could sell very well at $50, which is the suggested value of the book if the recipient wanted to purchase extra books directly from the company. As a fundraising team, you get to establish the donation amount you would like to ask for.

Let's say you ask for the full price of $50. If you make 40% of that amount, you will make a profit of $20 per Lifetime Travel Book sold. That is a lot more than the $2.70 from a 90% profit box of cookies. You would have to sell seven times more product to make up for that one sale of the travel book.

Now, there is a balance to this. If the product price is too high, then you will not sell as many products. If the product price is too low, then you have to work so much harder to have a high profit fundraiser.

We have found through years of fundraising experience that a balance between the two is optimal for overall high profit fundraising.

Therefore, if you price the Lifetime travel book at $30, and still make 40% profit, there is a better chance to sell more books overall.

When you consider that each individual selling the product from your fundraising team will sell to about 5 people, you really have to look at the overall amount you make from each sale. From the examples above, the profits would return $13.50 from 5 sales of cookies at 90% profit; $60 from 5 sales of the Travel book at $30 with 40% profit; or $100 from 5 sales of the travel book at $50 and 40% profit.

It is easy to pick which one you would think makes the most money, but remember the balance. You may average only 2-3 sales per individual when you price the product higher. Either way, it makes more sense to market a higher priced product like the lifetime travel book than it does a box of cookies.

High profit fundraising is not just about the percentage you make on each product sold. It involves the amount of money your fundraising team makes on the bottom line.

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Article Tags: better chance, fundraising companies, fundraising experience, lifetime, money, profit fundraiser, profit fundraising, recipient, seven times, tight economy, travel book
Referred by: http://jaykubassek.com



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