When I think about fundraisers, my mind immediately remembers buying chocolate bars or filling out a form with my choices for wrapping paper, snacks, or cookies. I and many others pull up these images because they represent the two main modes of product-based fundraising, Direct Sell and Pre-Sell Fundraisers.
So, what’s the difference between Direct Sell and Pre-Sell Fundraisers?
Direct sell fundraisers are the most straightforward method. Your group purchases products at a wholesale price and sells them at a retail price. This method’s benefit is the profit is yours to keep, and the earnings are in-hand immediately. Direct sell products have a low price and are usually an easy sell. In this style of fundraising, you pay for the products up-front. The downside is if you don’t sell all the product, it is yours to keep. There are no refunds or returns. Also, because the price per item is low, if you need to raise a lot of money, you have to sell many items.
Pre-sell fundraisers are also known as no upfront costs fundraisers. Your sales team is equipped with colorful brochures that describe the items being offered. Supporters choose what they like, place their order and pay, all in one transaction. Once all the customer orders and payments are collected, your fundraisers’ organizing team will place a bulk order from the fundraising company and pay with the funds you’ve collected. The benefit of a pre-sell fundraiser is the products have higher price points, which means higher earnings. However, there are more steps to execute. Planning, organization, and timing are crucial to pre-sell fundraising success.
If you have more questions about which style is right for your team, please call us to discuss at 888-874-8383. Our fundraising consultants are happy to guide you to the right program for you.