Choosing A Fundraising Product

Product Fundraisers

How To Choose A Product For Your Fundraiser

by Sandra Sims, Fundraising Coach

Many groups including schools, scouts, sports teams and more have used product fundraisers. Some have achieved great success with huge profits. Other programs have left volunteers wondering, "Is this really worth it?" Let's find out if a product program is right for your group and how to find the best program.

Is a Product Fundraiser Right for your Group?

The type of fundraiser should be a good match the mission and purpose of your organization. Products are commonly used for local organizations like school PTA, band, sports teams, and special interest clubs.

Product fundraisers are may not appropriate for some causes. Human rights, hunger relief, and political action organizations do not generally use product fundraisers. Events and fundraising letters are more suitable for these groups.

Be aware if selling products could cause conflicts with your group's mission or with its members. Has your group done product fundraisers in the past? Find out the opinion of your members before proceeding. If a majority is against selling products, the program is doomed before it even begins.

Be aware of what other fundraisers are going on in your community. The number of product fundraisers, especially for school children, can be overwhelming. Parents and community members are getting tired of seeing so many catalog and candy sales. This is why it is especially important to decide if a product fundraiser is right for your group.

Type of Merchandise

The type of product can greatly effect your outcome. Here is a brief list of popular products:

• Gift merchandise (usually through a catalog)
• Coupon Books or Discount Cards
• National Brand and Specialty Candy Bars
• Boxed Candy, Cookies and Nuts
• Bath products like Avon
• Cookie Dough
• Pizzas
• Candles

The type of product that sells best is one that appeals most to your audience. Think about your potential buyers, what types of items are they most likely to want to buy? Having great products will make it EASY for them to support your group. If it is something they would buy anyway, they will be much more likely to make a purchase.

No matter what kind of merchandise it is, it should be of good quality. For example, if you are selling candy, is it a high quality? Does it look appetizing? Is it a well-known brand? Does it have an attractive package? Ask these kind of subjective questions when evaluating products.

Having an exclusive product could also be a big incentive for purchasing. Find out what fundraisers other groups in your area are doing. You don't want to be competing with the sale of similar items. Also, is the merchandise easily available in retail stores? If so it could negatively effect your program. Time of year can have an effect too. Many products do better in the fall because of holiday buyers.

Another factor in regard to the type of product is the ease of delivery. Some foods like cookie dough require refrigeration. Other products, like candles, could be heavy or breakable. This doesn't mean you shouldn't choose these kinds of products. Just be prepared.

Number of Participants

Product fundraisers take a lot of sales to generate good income. How many volunteers do you have? How many sales people? Who can you count on to coordinate orders and delivery?

Commission

Fundraising programs vary in the amount of commission given to your group. It ranges anywhere from 30% to 75%. For example, for a $10 product on a 50% profit program, your group would keep $5.

Programs with 50% commission or more are preferred. Profit Margin is only one factor, however. If you find a great program that you think will sell like crazy, but it only offers 40% profit margin you could possibly make more money in the long run. Many programs offer a stepped scale. The more you sell the higher percentage your group gets. When considering stepped scale, be realistic about the number of items your group can sell.

Price of Products

The price of individual merchandise can have an effect on your sales. If products are priced too high, you could loose sales. If they are priced too low, you are not making as much money as you could. Again, compare a program's prices with other fundraiser programs.

Compare the price and quality with similar merchandise which is locally available retail stores. For example, why would someone want to buy gift wrap from a catalog for $10, when you can get it at a store for $2?

Also find out if there are any other costs associated with the program. These include costs such as shipping and product brochures. Find out if these are free to your organization, or if you have to pay for them. This could greatly effect your fundraising profits!

Evaluate the Fundraising Company

Think about these aspects when choosing a company:

• The quality of products
• How long its been in business
• Responsive Customer Service
• Clear, written policies and procedures
• Refund and return policy
• Timely shipment of your order

Add It All Up

Do some projections to see how much money your group could make. How many sellers to you have? Do you have people who want to sell?

What is your average item price? What is the profit margin? How many items does each person need to sell to reach your profit goals?

Be realistic and consider all the possibilities.

In summary, if you have…

a team of dedicated volunteers,

high quality, popular products,

that are easy to sell and deliver,

with a good average price

and a high commission

from a dependable fundraising company…

…you are on your way to a winning program!

© 2004 Sandra Sims

About the Author Sandra Sims, “The Fundraising Coach" has been raising money by participating in charity walks for over 10 years. To get more fundraising tips and a free copy of the special report "The 5 Keys to Successful Fundraising" sign up for the monthly Step By Step Fundraising Ideas Newsletter.