Higher Profit Fundraisers vs. Better Quality Merchandise

“What do you expect, it’s a fundraiser!” How many times have we heard that excuse when attempting to justify the low quality items that often appear in student’s fundraising boxes? Let’s face it; fundraising companies do a good job of making the items in the sales brochure appear larger and more appealing than they actually are. To be fair, fundraising companies usually disclose the dimensions of their products; however most people don’t read the fine print at the bottom of the picture that says that the candle is actually 3 inches tall.

The question is, do people want to spend more and receive higher quality items or do they just want to give a small donation and buy the cheapest item in the catalog? For years schools have pushed for higher profits thinking that they would end up making more; yet at the expense of cheaper products and less satisfied customers in the end. The choices have become:

• Sell cheaper merchandise and receive a higher profit
• Sell higher quality merchandise and receive a lower profit
• Sell higher quality merchandise, raise the price and receive a higher profit

The question that should be asked then is which method will bring in the most money? There are advantages and disadvantages to each choice. Higher profit usually means lower quality merchandise and less satisfied customers; however higher quality items will either cost the customer more money or the fundraising group will need to accept a lower profit.

Would schools make more sales if they actually sold more desirable and higher quality merchandise? There appears to be a growing trend as many schools are realizing that they do end up making more money even though they receive a lower profit percentage. Demand for higher quality brochure merchandise is translating into record sales for many schools. And to top it off, customers are more satisfied as well. Who doesn’t think improved product quality won’t have a positive effect on future school fundraisers?

Is too much emphasis then being placed on percent profit? The simple answer to that question is, “You don’t take profit to the bank, you take money!”