- Cheap prizes in school fundraisers negatively impact sales because students are less motivated when they know the prizes are of poor quality. With better quality prizes available even at lower sales levels, more students will participate and overall sales will increase. - While companies can offer schools a higher profit percentage by providing cheap prizes, this actually results in lower total profits for the school since fewer students participate. Better prize programs have been shown to vastly outperform traditional cheap prize programs and increase total money raised. - Rather than focusing on the highest profit percentage, schools should ask which prize program will best motivate students to sell more. Increased participation and sales from better prizes can outweigh a slightly lower percentage kept by the school.

1. WHY SCHOOL
FUNDRAISERS
CAN’T AFFORD
CHEAP PRIZES
Frustratedwithstagnantschoolfundraisingresults?
Discoverhowcheapprizeprogramsnegatively
affectschoolfundraisersandhowyoucanimprovesales.
WrittenbyClayBoggess

2. Discoverhowcheapprize
programsimpactschoolsales
It seemsthatmostschool
fundraisersofferonetypeof
prizeincentiveto studentsfor
sellingoutof theircatalog.They
putthecheapandjunkyprizesat
theentrylevelwhilemakingthe
socalledbetter-qualityprizes are
muchmoredifficultto obtain.It’s
almost like
someoneswingingatapiñata
blindfoldedwhiletheperson
holdingtheropemovesit upand
downsotheycan’thitit.

3. Thisdefinitelymakesfinancial
sensefor thecompanybecause
they’repayingfor theprizes,and
eventheschoolbecauseit pushes
studentsto sellmore; however,
let’sbehonest.Most students
don’twinthebetter prizes.They
endupdisappointed withthe
junkyprizes.

4. Buttheonlypeoplewhoseemto
becomplainingaretheparents,
becausethey’retheonesdoing
thesellingsotheirlittle
Johnnycanwintheprizethathe
hashisheartseton.
Unfortunately,mostsponsors
believethatthesetypesof
incentiveprogramsaretheonly
optionoutthere,sotheysimply
acceptthecomplaintsasnormal.

5. Sowhysettlefor ‘cheapand
junky’whenyoudon’thaveto?
Withalittledigging,you’llfind
thatthereareviableoptions
thataremuchmorerewarding
thatcanevenmakeyourschool
more money.
WhyBetterPrizesMeanaHigher
Fundraising Profits

6. TheHighPriceofLow-Quality
Incentives
It neverfails.It seemsthatthe
first questionsponsorsalways
askusiswhatpercentprofit the
schoolwillmake.It is
understandablethattheywantthe
profit to beashighas possible.In
theirminds,higher profit
percentagesleadto more money.
However,whatsponsors don’t
realizeis,there’sapriceto pay.In
otherwords,they’re givingup
somethinginexchangefor more
profit.

7. Companiescanaffordto offer more
profit becausethey’regivingaway
lowerqualityprizes.Theeffectof
cheaperprizeincentivestranslates
to studentsbeingless motivated,
andtheresultislower grosssales.
Onaverage,elementary school
fundraisersaveragebetween15-
20%of student participation.That’s
becausethe olderstudentsalready
knowwhattoexpectsotheybecome
spectatorsastheyounger students
doalltheselling.

8. Ontheotherhand,betterquality
prizeincentivestypicallybringin
moretotaldollarsbecausemore
studentstendto participateand
sellmore.Thisisespeciallytrue
whenanewtypeof prizeprogram
isintroducedfor thefirst time.
Howto improveschoolwide
participation

9. FamiliarityBreedsComplacency
Asalreadymentioned,
anotherbigreason
traditionalfundraiser
incentiveprogramsareless
effectiveinmotivatingsellers
isthatmoststudentshave
alreadyhadanegative
experiencewiththem.Thisis
whatleadsto low
participation.

10. However,companiesinitiallydoan
effectivejobof raisingthelevelof
excitementamongstudents.
Theydothisbyfocusingonthe
higher-levelprizesbecausethey
knowalmosteverystudentwill
wantthem.Asaresult,students
start off optimisticandexcited.
However,mostwhohave
experiencedthistypeof prize
programknowwhathappensin
the end.
Overcomecheapprizeprograms
withfunprincipalincentives

11. HowSchoolFundraisersImprove
withBetterPrizes
Whatif youcouldoffer better
qualityincentives,evenattheentry
pricelevel?Thiswouldhaveahuge
effectongrosssales.Theobvious
resultwouldbemorestudents selling
becausetheywouldn’thaveto sellas
muchto receiveamuchmore exciting
prize.Inexchangefor aslightlylower
profit percentage,therearebetter
qualityprize incentiveprogramsout
therethat havebeenprovento vastly
outperformthemoreconventional
ones.

12. Keepinmind,youdon’ttake profit
percentto thebank,you make
money.Youcanendup makinga
higherpercentageof asmaller
scale,or havingalarge saleand
makealittlelower percentage.
Trustus,it works muchbetterto
beasmallerfish inabigpondthan
abigfishinalittle one.

13. Moneyisalwaysmadeoff thegross.
Insteadofaskingwhichprizeplans
offerthehighestpercentageof
profit,askwhichonewillbest
motivateour studentsto getout
andsell.
Learnaboutthebigeventfundraising
difference
WrittenbyClayBoggess