Let me say 2 years ago we changed our catalog fundraiser to a company that offered us a 50% profit share, but the prices were higher (about 15%) than in previous years, the quality was the same, very good....but the profit we made was only $8000.00. That was about $1500.00 less than we made the years before, but we figured we'd try again....last year our profits were over $2000.00 lower than in previous years. Lesson learned...we just finished our catalog drive this year with our original company who gives us ONLY 40% profit share and we made just over $12000.00.
The math speaks for itself! By demanding the 50% profit we made less money! I'm $4000.00 extra happy with my 40% profit!!

"It's not the deal you got, but the deal you thought you got" There has never been a truer motto.

When it comes to our PTO picking out fundraisers, I ask first what do our children get for selling YOUR product? If the company will only give little token gifts, then I don't want to deal with them. If they give an awesome kick off, plus token gifts, plus an ice cream party, plus a Mega event (company supplies inflatables) then I want to work with them! If we have to take a bit lower than 50, usually 45% is what the norm has been and do a spring and fall so be it.

As long as the little sellers are excited and happy that is what matters. If the kids aren't motivated then forget about it you won't have nearly the sales that you need.

This past spring, we searched high & low for something "different" that would allow us to make at least the same amount of money we are used to making. Our fall catalog sale is our only major fundraiser for the year, and we rely on that $ for our opperating costs. The company we had been using for several years was giving us 55% plus incentives. Our rep ripped us off, not reimbursing for what he was supposed to, so we went searching.

We had no specific criteria, but were looking for something outside of the regular fundraiser "junk". I must have recieved 40 packets from various companies~all saying they were "the best". When it came down to it, most of it was overpriced, did not offer any incentives, some charged for catalogs & shipping & some would not even return our calls. In the end, we ended up w/ a company (I will not say which one) that offered 50%, incentives, free catalogs & shipping & the same old same old. Don't get me wrong, they have been great to us & we have been pleased w/their service. We made what we expected for a profit. We have been happy w/ the COMPANY. As a parent when you buy something from one of these catalogs, you know what you are getting & why. I think most people just buy to contribute & would not really spend $60 on a single basket or piece of pottery, but would & DO spend it on wrapping paper, ornaments & magazines. That being said... I, for one, am tired of $9 wrapping paper! We tried (we really did!) to find a new route. But when it comes down to it, we cannot risk losing our cash base & I'm just not sure 30-40%- which is what non-traditionals were offering- would net us what we need. I think parents would still spend the same amount of money~we would just get less.

I do see the argument for both sides here. We've been getting a 50% profit for the past three years and we've been surpassing our fundraising goals. Yet, the amount of complaints we are getting from the parents that are buying (and selling) our "junk" or "crap" has also never been higher. It's a catch 22 situation. It's obvious that the product quality decreases every year in these programs.

Here's my two cents

A few years back we went looking for a new fundraising company due to problems with the previous one. I directed the person in charge to find a company whom provided the following
1)50% profit
2)free brochures & free shipping
3)A prize program
4)The orders came sorted per child.
5)catalog items needed to be of decent quality
& a big catalog that offered a lot of varied
items

The person in charge came back with the catalogs of all the companies that fit the criteria. We selected the one that we liked best. We have been using them ever since and have been very happy and satisfied with them. Also our sales have increased every year for the last 3 years that we have been using them. All this being said, why would I now want to settle for anything less???

Here is some of yuor competition, Joe, as I am sure your are aware, but it just one reason maybe to keep your offereings atractive thru % of profits the shcools keep:

Some schools are starting to ask parents to donate cash instaed of run time consuming fundraisers (time is money too, even volunteer time, and volunteers are getting harder and harder to find, just surf these boards and you will read for yourself).

But here is the ohter reason: if a parent gives say $30 check to school parent group, a 501c3, the school gets to keep 100% of it, or $30 (and the parent spent less than that, depending on tax bracket, becuase the contrbution is tax dedutctible).

If the same parent buys $30 of stuff through fundraiser, the school only keeps about $12, if the return is 40%.

All I know is many parents (and some schools) are going the cash/tax write off route and dispensing with the fundraiser options altogether becuase the school gets more of the parents contribiution.

After all, like Shawn said, when we buy fundraiser items, we do it to support the school, or our childs class teacher, etc, not to buy the stuff. The stuff, we can buy elsewhere, to state the obvious.