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Fundraiser Just trying to understand

maddy123

Novice Member
May 31, 2009
37
0
ok, I may be totally wrong but the message I am getting is when you do a fundraiser PC takes our comission to pay?
They are saying they donate but it is really the consultant?
There are no free products, 1/2 price , just the monthly special?
I have been reading a lot and just dont see the reasoning.
We could do a catalogue party for the organization, donate 15% and get all the benefits?
I just dont understand how they make sense.
Please dont take this as me being rude just very confused.
I would love any answers.
If it makes a difference I am in Canada.
Thanks
 

chefann

Legend Member
Gold Member
Nov 4, 2005
22,238
6
The lack of host benefits is what covers a lot of the donation. HO doesn't take away all your commission for a FR, but there is a reduction. However, the FR sales will count toward your monthly totals, which may push the rest of your commissions that month up a level. And FRs do count toward any monthly incentives.

You are correct, the only host benefit that the chairperson receives is the monthly bonus.
Many consultants have pointed out over the years that if you're doing a FR for an organization that needs kitchen tools, it's better to do a standard cooking show and let them use the host benefits to get those tools.
 

gailz2

Senior Member
Gold Member
Jun 1, 2007
2,026
10
Yes, our commission on FRs is either 15% (if you have not made career total of $5,000 yet) or 17% if your career sales are over $5,000. The good thing is that sales do count toward the monthly totals as Ann said. I also is good PR. I usually donate an additional 5% of my own funds as a good will gesture and the PR.
 

chefann

Legend Member
Gold Member
Nov 4, 2005
22,238
6
Just a small correction, your FR commission is 15%, or 17% if your career sales are over $15,000.
 

scottcooks

Veteran Member
Gold Member
Jul 7, 2005
1,937
96
Fundraisers don't make "sense", from a money-making standpoint. Many direct sales companies don't even do them. Instead, get you head around what will make more customers...

Community / customer service / helping others with their needs.

When you make it about them, you can see enormous sales and terrific return customers.

Those customers and their future sales make sense - and dollars!
 

maddy123

Novice Member
May 31, 2009
37
0
Thank you all so much for exlaining.
I was really having a difficult time trying to make sense of it all.
 

maddy123

Novice Member
May 31, 2009
37
0
so the charity is only getting the money that I am contributing from my comission.(the reduction)
PC isnt contributing at all then and taking away the host benefits?
 

chefann

Legend Member
Gold Member
Nov 4, 2005
22,238
6
No. The charity gets a percentage based on the total guest sales. It's more than the "loss" from your commission. They get an amount roughly equivalent to HO's cost for the usual host benefits.

The numbers may be slightly different in Canada, but here in the US it breaks down as follows:
Guest sales $599.99 or less, organization gets 10%
Guest sales $600.00 or more, organization gets 15%

For comparison, a $1000 show host gets $215 in free product, 4 half price items, and a 30% discount. We'll eliminate the monthly bonus from the computations, since the FR chairperson is still entitled to that. After commissions and overrides to your upline, HO probably comes out even on items purchased at a 30% discount. And they're probably pretty close to that on the half-price items. So let's eliminate those, too. What's left is the free product value. Those $215 in products probably cost HO $86, which is 40% of $215. The $1000 FR nets the organization a check for $150 - MORE than the cost of the show host freebies. So HO cuts commissions on FRs by a few percentage points so that they aren't losing money on them.

Make sense?

Some consultants CHOOSE to offer more money to the organizations, because many groups won't even consider a fundraiser that offers less that 40 or 50%. Adding 5% still won't bring the donation up to that level, but it helps. You are under no obligation to give the group anything above the check from HO.
 
Last edited:

gailz2

Senior Member
Gold Member
Jun 1, 2007
2,026
10
Just a small correction, your FR commission is 15%, or 17% if your career sales are over $15,000.


Ooops, you are of course right. A slip of the keyboard. Don't know why I put 5000 vs the correct 15000.
 

chefann

Legend Member
Gold Member
Nov 4, 2005
22,238
6
I figured, but I didn't want a new consultant to think the $5000 number was correct.
 

NooraK

Legend Member
Gold Member
Feb 6, 2008
5,884
29
I found this helpful in understanding how fundraisers work.
 

Attachments

  • Nancy Jo Ryan Fundraising tips.doc
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pampered1224

Legacy Member
Silver Member
Apr 13, 2004
3,791
41
There is another reason too for the donation amount. It is simply that PC refuses to MARK UP the price of our products to make the 40% or more avaialble for those fundraisers.
For example. A candy bar costs a group 50 cents each. They in turn sell them for $1. 50% profit. We however sell our Food Chopper at $29.50 doing a regualr party but we sell it for $29.50 on a fundraiser. See - no mark up! I think that was because PC decided that it was better to be honest with our pricing rather than duping the public with outrageous mark ups. And how do you justfy selling a $29.50 Food Chopper for $59 so a group can make 50%?
 

PCMomto4

Member
Jun 15, 2009
258
0
I know for sure that Tupperware does fundraisers and what you pay from their fundraising catalog (because it is different than a catalog you would see if you went to a show) is more than their normal catalog. So they are inflating their already overinflated prices to help cover what they are giving the organization doing the fundraiser.

For example, if my explanation didn't make sense. If you went to a party and bought a bowl from them for 35 dollars, if it is in the fundraising catalog you are probably going to pay 45 for it.
 

DessertDivaFL

Veteran Member
Gold Member
Jun 2, 2008
1,313
1
I know for sure that Tupperware does fundraisers and what you pay from their fundraising catalog (because it is different than a catalog you would see if you went to a show) is more than their normal catalog. So they are inflating their already overinflated prices to help cover what they are giving the organization doing the fundraiser.

For example, if my explanation didn't make sense. If you went to a party and bought a bowl from them for 35 dollars, if it is in the fundraising catalog you are probably going to pay 45 for it.

This is coincidental but I was at a Tupperware Party last night. She explained the items in the Fundraiser Catalog are items not available in the regular catalog and the donation is 40% of sales. However, the prices in the regular catalog were so high I would hate to see how much they were in the fundraiser catalog! I am so glad PC doesn't inflate the prices but it would be nice to have a higher percentage go to the cause/group.
 

PCMomto4

Member
Jun 15, 2009
258
0
Its been a few years since my daughters preschool did a tupperware fundraiser, and true some of the things that were in the fundraising catalog weren't in the main catalog but a few of the popular items, like some of the tumblers and what not were in both of them. But maybe it has changed over the past few years. But their prices for the fundraising items were even more inflated than they regular catalog items, scary isn't it.
 
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