The Greatest Incentive

Sponsors of The Fundraising Network provide us with a wealth of information and ideas about fundraising.  I was speaking with All Star 1 Fundraising today, and he told me about what motivates his groups that do fundraising — profits. Here is what he had to say.

The very best fundraiser incentive which is far superior to all other fundraising incentives are fundraisers with huge or high profit fundraising!!!

All Star 1 Fund Raising, offers a total of (8) high profit fundraisers with up to 60% profit fundraising.  That’s up to $7.80 profit per item depending on which fundraiser you do!  All other incentives offered by other fundraising companies such as inexpensive gadgets, trinkets, toys, electronic or high-tech games or merchandise will never compare with our 50% or 60% high profit fundraisers!!!

You can take just a small amount of your profit and buy a ‘whale-of-a-lot’ of fundraising incentives and, still at the same time retain more profit than you would make with the companies that only give you 40% profit.

Look at it this way.  It doesn’t matter what percentage of profit you make.  It all comes down to how many dollars you raise when everything is done.  It is based on how much you make per sale and how many items you sell.  Ultimately, the more you sell, the more you make, and more money made per item means more money raised.

Great incentives provide motivation for your group members to sell.  Think of it this way.  If you were a 6th grader, would you be more motivated to meet a particular sales quota if you were going to receive a cheap radio or a brand new ipod?  There are plenty of cheap “prizes” that many fundraising companies bring in from China as incentives.  What if you made more profit and used a little of it to provide fantastic incentives?  Here are a couple of examples.

You can make $10,000 selling 1000 boxes of fruit with Parker Indian River Groves.  You can offer your three top sellers a brand new XBox360 or your top 4 sellers a brand new Wii and still keep $9000 in your pocket.  Your first thought might be, “But that takes almost $1000 out of our pocket!”  However, how many items would your group have sold without those incentives?  $1000 represents the money from the sale of 100 boxes of fruit.  If your group members sold 100+ boxes more than they would have sold without the incentives, then spending the $1000 makes great sense.  Otherwise, your total amount brought home would be much less without the incentives.

Let’s use All Star 1’s example.  Let’s say that you sell $13 items.  You percentage of profit with many companies would only be 40% — about $5.20 per item.  With All Star 1, you make 60% which comes to $7.80 per item.  If you sell 1000 items, you’d make $5200 with the 40% company and $7800 with the 60% company.  If you are making 60%, you sell the same number of items, use $1000 of your profits to provide really awesome incentives and still make $1600 more than with the 40% company.

(Please note that the above examples are only for demonstration purposes.  They are not actual promises of particular profit amounts.  You need to check with your fundraising company for real profit amounts.)

Summary

All this can be a little confusing, so here’s a quick summary.

  1. Rather than considering the percentage of profit, consider the actual money made per item sold.
  2. Figure how much more money can be made by providing great incentives out of your profits that truly motivate your group members to sell than by just settling for the cheap “prizes” that many fundraising companies provide.
  3. If you can make more money by motivating your members with fantastic incentives that you provide out of your profits, then choose to make more money!

All of this can be a little daunting when you first think about it, but take some time to think about how you can make the most money from your fundraiser.  While providing your own incentives may seem like it may be costing you profits, you might find that they actually help you raise more.  The key is finding the fundraising company that pays you more so that the cost of the incentives is covered.

Going Nuts for Fundraisers

With the growing obesity epidemic in the United States, it isn’t hard to understand why many locations are urging groups and organizations to use healthy fundraisers instead of more traditional ones. Therefore, The Fundraising Network has compiled a list of a number of fundraising companies who offer these healthy alternatives. In addition, we are bringing you this series of posts here on The Fundraising Site to help you know more.

Not too long ago, I had the opportunity to attend a weekend seminar with Dr. Dick Couey. Dr. Dick Couey is professor emeritus of Health Sciences at Baylor University in Waco, Texas. His area of specialty is Exercise Physiology, Sports Medicine, and nutrition. He is a former member of the President’s Commission of Physical Fitness and Sports, and served as a consultant for the U.S. Olympic team. Dr. Couey has written over 20 books on wellness and his expertise in keynote presentations is sought after worldwide. He has appeared on various TV and radio programs at home and abroad and is considered a master teacher.

Dr. Couey discussed the need for healthy omega-3 fatty acids in our diets. I was amazed at the way our bodies use omega-3’s to reduce inflammation and prevent diseases. Increasing omega-3’s can include minimizing processed foods and including as many whole or raw foods (fruits and vegetables) as possible.

One of the sources of omega-3’s is nuts. There are plenty of nuts available in various snack fundraisers, but not all snack fundraisers are created the same. Many of them contain processed foods such as pretzels. However, there are plenty of healthy, nut fundraising packs, and we found some of them.

All Star 1 Fundraising

  • Sesame Treat – Sesame sticks, blanched peanuts, redskin peanuts, cashews and almonds
  • Taste of the Tropics – A trail mix treat filled with healthy flavors of tropical dried fruits (pineapple, papaya, dates, coconut, banana chips) and almonds, walnuts and pecan
  • Student Mix – Protein-packed lunch box or afternoon snack with roasted peanuts, cashews, pumpkin seeds, almonds and raisins
  • Natural Snacks – Lots of things your body needs and loves – sunflower seeds, pumpkin seeds, soybeans and peanuts

TK Fundraising & JustFundraising.com

  • Smart Snacks – Smart Snacks features 12 items which include: Cashew Halves, Cranberry Trail mix, Say Cheese mix, Hot n spicy peanuts, Hawaiian Delight mix, Mixed nuts, Cashew snack mix, Salsa Mix, Honey Roasted pnuts, Sugar free candy, Fruity trail mix, and Roasted & Salted Almonds.

GourmetFundraising.com

  • Bean Soup, Chili, Pasta and Dessert Mixes – While this particular fundraiser does not include nuts, we found GourmetFundraising.com offers “Bean Soup, Chili, Pasta and Dessert Mixes – 29 of the most delicious, hand-crafted bean soup, chili, pasta, quick bread and dessert mixes from the foodcrafters at Purely American.”  In addition to high-fiber, low-fat dried beans and grains, gourmetfundraising.com advertises that their products are all Natural, have No MSG or artificial ingredients, and they offer traditional mixes that include recipes with vegetarian options.

When looking for healthy snack fundraisers, pay attention to what is included in the package. Some packages contain nuts but may be high in salt or have unhealthy choices mixed in as well. Dried fruits can be healthy, but make sure they are not coated with processed sugars.

There are plenty of healthy choices for fundraisers, and they are not hard to find. In addition to nuts and certain gourmet food fundraisers, you might also consider fruit fundraisers as well.

Fruit Fundraisers: Selling Full/Half vs. Large/Small Boxes

In our continuing series about healthy fundraising, The Fundraising Network has been discussing Ortanique fundraisers, a fruit fundraising opportunity that can help groups raise as much as $10,000 or more.  In their ortanique fundraising program, Parker Indian River Groves helps groups maximize their profit by selling full and half boxes rather than large/small.

Most groups simply sell large (40 lbs.) and small (20 lbs.) boxes of fruit.  This is the simplest method as all the fruit comes in exactly the size to be delivered.  However, what if you could increase your profit from $10 to $11 per box.  That’s an additional $1000 profit per full truckload!

When you sell both large and small boxes, you order exactly what you need of each size.  With the suggested markup of $10 per box, you make $10 per box.  Let’s create a hypothetical example.

Large Navel Orange
Your Cost:  $18.00
You Charge:  $28.00
Your Profit:  $10.00

Small Navel Orange
Your Cost:  $10.00
You Charge:  $20.00
Your Profit:  $10.00

Notice above that the small boxes are ½ the price of the large plus $1.00.  Essentially, you are paying an extra dollar for the cardboard to package the small boxes.  A dollar doesn’t sound like much until you think about it being $1.00 per box, what if you could put that $1.00 per box back in your pocket?

Sell Full and Half Boxes – more profitable

A full box is the same size as a large box.  A half box is the same size as a small box.  Instead of selling people “large” and “small,” offer them a full box or a half box.  The reason you offer them a half box is because you are going to order only large boxes from Parker Indian River Groves.  For those who want a half box, you are simply going to split the box yourself when the fruit arrives.  Therefore, for every 2 half boxes for your customers, you order one large box from Parker.

Now look at your profit per box offering the same amount of fruit at the same prices.

Large Navel Orange
Your Cost:  $18.00
You Charge:  $28.00
Your Profit:  $10.00

Small Navel Orange
Your Cost:  2 halves for $18.00
You Charge:  $20.00 each
Your Profit:  $11.00 per half

You are still selling the customer the same amount of fruit for the same price.  However, by decreasing your cost you have increased your profit.  It’s a great way to make much more money with just a minimal amount of extra work!

Ortanique Fundraisers

With the growing obesity epidemic in the United States, it isn’t hard to understand why many locations are urging groups and organizations to use healthy fundraisers instead of more traditional ones.  Therefore, The Fundraising Network  has compiled a list of a number of fundraising companies who offer these healthy alternatives.  In addition, we are bringing you this series of posts here on The Fundraising Site to help you know more.

What is an Ortanique?

The ortanique is unique hybrid of an orange and tangerine. According to Jamaican folklore, it developed with the help of a pair of lovebirds – one living in an orange tree, the other in a tangerine tree.  Ortaniques are bright orange, incredibly juicy and are only available March through mid-April.  If you are wondering what an ortanique tastes like, it is much like a navel orange with a very slight tangy taste to it.  The flavor is rich and sweet.  Their shape is round but slightly flattened (like a tangerine), and they section very easily.

How do you do an Ortanique fundraiser?

An ortanique fundraising campaign can be incredibly profitable and not complicated though it does take some work.  It is handled much as a traditional truckload fruit fundraiser, but since the delivery date must be in March, sales must be done in January and early February.  Begin taking orders for boxes of fruit (full and half sizes) in January.  Turn in your order halfway into February.  The fruit is delivered on a refrigerated truck in March. (Check back in a few days to learn why we recommend selling full and half boxes rather than large and small.)

Perhaps the biggest drawback for most fundraising groups is the size requirement.  You need to be a large group because you will need to order 500 boxes of fruit just to meet the minimum.  Generally, that requires 100 or more participants selling the fruit.  However, there is an alternative.  In some areas, several small groups work together to sell the fruit.  By working together, they meet the minimum and can meet with great success.

How much money do you raise?

The standard profit on any fruit fundraiser should be about $10 per box if your group sells a full truckload (1000 boxes).  The profit could be slightly less if you sell less than a truckload since the shipping still has to be covered.  In other words, sell a full truck and you stand to make as much as $10,000 depending on your supplier.

Which supplier should you use?

We suggest using a Florida grove that grows their own ortaniques.  Most Ortaniques are grown in Jamaica.  There are very few Florida fruit companies who are able to grow them.  One that stands out is Parker Indian River Groves who have their own groves of ortaniques.