Why is Profit Percentage used as the main factor to assess school fundraising companies?

Let’s begin with a simple mathematic assessment of this question and for ease of example let’s use a discount card fundraiser as the product. We will have to make a few assumptions, but they will be valid assumptions based on our market knowledge.

Group A uses company XYZ and is offered 90% profit on the fundraising discount card program. Assume company XYZ produces a less than average card and sub par discounts. Company XYZ gives the group no guidance on how to properly execute the fundraising program. Because of these factors Group A sells 400 cards at $10 a piece. 400 discount cards X $10 per card X 90% profit margin = $3,600 profit for Group A.

Group B uses company ABC and is offered 60% profit margin on their school discount card program. Assume company ABC does a good job with the discounts on the card and give solid presale advice to the customer. Because of these factors Group B’s discount card program goes much better. Group B sells 1,000 cards. 1,000 discount cards X $10 per card X 60% profit margin = $6,000 profit for Group B.

Obviously these are hypothetical examples, but the take away is very real. When picking a school fundraising company you should ask what you get for your money. Find out what services are provided, what the pre-fundraising strategy is and who is chipping in for the prizes. These factors can be drastically different among companies.

Also be aware that a lot of times in order to get the highest profit percentage there is a non refundable commitment involved. You must be honest with yourself when committing to a portion of the fundraising program because if something goes wrong you are on the hook. Your profit percentage doesn’t look nearly as good if you are paying for unsold product.

Now that I have given my free advice I like to close with a cheesy marketing line. Believe it or not, I don’t just write this to promote ESC Promotions. I write this because I believe it. At ESC Promotions, http://www.escpromotions.com/, we attempt to approach every program with the client’s needs in mind. There are so many different fundraising companies that offer a vast array of different products in the market. It can be overwhelming. This is why our representatives are standing by to answer questions regarding different options. Whether you choose ESC Promotions for your next fundraiser or not please consider all of the factors when choosing a fundraiser. Happy Fundraising.

About the Author

For over a decade, ESC Promotions has responded to customers working with them to develop fundraising solutions to meet the needs of their particular organization. They have been able to not only enjoy personal and long-lasting relationships with their customers, but they have also been able to expand their options and modify their programs to obtain the maximum results. Visit them on the web at www.escpromotions.com or contact Chad Wolfe at ESC Promotions, 765-683-9374 or 1-888-478-5273 (toll free).