Not wanting to do sales fundraisers is one thing. I understand that. MichelleB -- I hope your walkathon is a smashing success.

But for those groups that are doing a sales fundraiser, going mainly by "highest percentage paid" is crazy. It's bad business.

Why? Because of how the percentage paid is determined.

Examples: Let's take two gift wrap companies. Company A and Company B.

Company A has slightly higher quality wrap (which means it costs more to produce) and company A likes to keep the retail cost down, because they believe that the higher quality/lower retail price combo will lead to more gross sales in the short term and happier supporters (better value for supporters) for the long term. Company A charges $7 for the wrap and you keep $3. (less than 37.5%).

Company B is the opposite. Slightly lower quality wrap at a higher price point. They charge $8 per roll and you keep $4 per roll. (50%).

Is Company B the better choice?

Maybe, but it's far from a no-brainer. I'd likely go with A myself, especially if A gives better service and my group is thinking long-term. I want happy, satisfied supporters.

Why can't A give the higher percentage? Because by providing the higher quality paper and the lower price point, the higher percentage wouldn't work.

B's not giving the higher percentage because B is somehow more generous. B paid less for the paper (lower quality) and charged more for the paper. This idea that the companies that give a higher percentage are somehow more generous is just misplaced. It doesn't work that way.

Again, if all else were equal, then higher percentage is great. But all else is seldom, seldom equal.

Tim

I'll tell you what. The school I am at now has always used some form of a catalog fundraiser. Last year, $36,000 worth of product was sold and we got about $16,000 from that (some product was 50%, some 40%)
I have convinced the board to give a jog-a-thon a try. The key is in the prizes offered to the students and so far, I have procured some very nice top prizes (my old school has given me all of their templates and tools to work with so I don't have to reinvent the wheel) We have a goal of $20,000 to raise ($4,000 over what we got last year but $16,000 less than the money that was collected for product) They're taking a leap of faith but I am certain that we will blow our goal away.
I will keep you all posted and you can consider us a "test case" so to speak. However, when I presented it to the board, I offered the statistics of what other schools raised- all different demographics for each. Schools from the poorer areas still collected on average $50 per student with the highest being $90 per student (based on enrollment) this was including schools that used it as a secondary fundraiser (spring for example after catalog in the fall)
Our demographics is mixed. Again, if I'm right, we'll end up collecting close to what was sold. The only difference being that we won't be giving 50% + to a company. We'll keep it all. So I'll keep you posted.
(as for selling Tupperware- I love the stuff but I'm not going to market it as a fundraiser. It goes against what I think- highest percentage paid. I can find plenty of business without going into that arena)

After hearing the facts I guess 30% on an Avon fundraiser is not that bad, although it's a shame you had to do so much of the work. To me the fact that you were able to sell $20,000 in Avon is incredible! I know you don't like selling, but obviously it works at your school.

We don't do Avon, or Partylite, Cookie Lee or any other of the "home party" type fundraisers because it becomes too complicated when the rep is a parent at our school. We only use 3rd-party fundraisers (i.e. not associated with anyone at the school) and we do shop around for the best deal. We dropped our gift wrap company this year after 12 years because their competitor offered us a better product and much better service. We have used two cookie dough companies because the first just didn't provide the best product and service for the best profit.

I know a lot of people don't like "selling" a product. If you can raise enough money with a pledge or membership drive or a carnival to cover your obligations for the year then that's the way to go. We have a huge obligation to the school because we pay for all kinds of enrichment programs. We set our budget and goals in the spring and then have to fundraise the whole year to raise the money to pay the bills. I wish it wasn't like that (fundraising is the worst part of the job for me) but we are trying to make up for all the school budget cuts and not let the state and school district cuts affect the kids. Last year the four elementary schools in our area all did a combined pledge drive. Each school did their own campaign but with a common theme. One of the schools raised enough money that they didn't have to do any other fundraising the rest of the year. One school came really close. Our school has different demographics from the others (more diverse, not as affluent) and we only raised half as much as the others so we continued to fundraise. In the end we raised as much money as the other schools, just in a different way. We found that while a big chunk of families at our school won't pledge money they will buy products. I think some people like to "get" something tangible for their money.

Finally, don't be afraid to "mix it up". Don't just do the same old fundraisers year after year because you always have. There are lots of exciting products now. Sit down and think about your demographics and what might appeal to your families. We have a planning meeting each spring to think about new things. We're going to try an adults-only gala in the spring as something new. It's a stretch for us but I'm hoping it's really successful.

"speedy that depends on what type of profit you are looking for, if a group has to sort orders to receive 30-40% profit wouldn't it make more sense to do a sale that gives 50% and sorts orders? I think most groups would go with the higher profit margin, we do so much work with any fundraiser anyways. I have a problem with companies that take our money, the sales reps never call and now they are lowering profit...guess what? we cut them out of the picture. Some companies clearly miss the point that ptos/ptas are pushing their product....my husband owned his own business for over 15 years and you know what came first....the customer. I am seeing more and more places cutting service and that will come back to bite them in the butt... "

Pals,
I understand what you are saying but I was just addressing the fact that she said it was an AVON fundraiser. That is how they work. 40% max profit but the rep can give whatever they want from 10-40%. And I said it could've been handled better. When I did my fundraiser, I sorted all orders by girl by their individual order, put my biz card and new brochure in each order and then the girls delivered. Doesn't mean everyone does it that way. That is why there should've been some sort of contract on what the rep would do for that particular fundraiser.

speedy that depends on what type of profit you are looking for, if a group has to sort orders to receive 30-40% profit wouldn't it make more sense to do a sale that gives 50% and sorts orders? I think most groups would go with the higher profit margin, we do so much work with any fundraiser anyways. I have a problem with companies that take our money, the sales reps never call and now they are lowering profit...guess what? we cut them out of the picture. Some companies clearly miss the point that ptos/ptas are pushing their product....my husband owned his own business for over 15 years and you know what came first....the customer. I am seeing more and more places cutting service and that will come back to bite them in the butt...

Ok, here's my two cents on the situation....As an AVON rep...we are allowed to give up to 40% (regardless of our own personal selling status) to fundraisers. Now, an Avon rep can choose to only give 30% to the school if the rep decides to package orders, etc. I did one fundraiser with a high school pom team...they sold over $2500 in products and they made $888. (Some things you cannot get 40% on for profit..they max out at 20% like clothing, etc.). So in all actuality, $7000 from a $20000 sale is not too shabby. But, the rep could've handled it better and help you sort through orders, etc....