It might be a surprise, but research shows that the majority of organizations that hold raffle ticket fundraisers do not know how much money they will make until after the raffle is over. Nearly all raffles have a target amount of money that they would like the raffle to produce, and there is a simple calculation that can be made to see how many tickets you will need to sell at what price in order to meet that goal. By playing around with the number of raffle tickets and the pricing in order to match your customer base it is fairly easy to plan your raffle so that you meet your fundraising needs.
In order to help ensure that your next raffle ticket event is a success, the rest of the article describes factors that you should take into consideration when planning your fundraiser. This raffle ticket calculator utility will help you price the correct amount of raffle tickets for your event.
It is important to know how much profit your organization would like to earn during your raffle ticket event. This value should be the ideal net proceeds to the event after all other costs have been subtracted.
There are several costs that can be incurred during a raffle ticket event. The list below lists the most common ones.
Raffle Ticket Costs
Whether you print your raffle tickets yourself or have a company like Eventgroove print the tickets for you, your raffle tickets are going to cost money. Often times the look and feel of the raffle ticket will help convey a sense of value to your supporters allowing you to charge more for them. I have talked to customers that wanted custom raffle tickets designed that looked expensive so that it would be easier for them to sell the raffle tickets at a higher price. This price should include all related costs as well (shipping, sales tax, and other fees all add up to produce the total cost of generating the tickets that you will use for your event).
Raffle Prize Costs
More often than not, you will not find an organization that is willing to just give you an item for you to give away (at least not something cool enough to make people want to win it). Often times you will have to pay at least part of the price of the prizes for your event. Most people will be willing to give you a prize at a reduced price after you sell them on the publicity that they will be receiving as a sponsor to your event.
Raffle Ticket Distribution Costs
The distribution costs of your raffle include all of the related costs of marketing and selling your raffle tickets. This could be posters that will be printed or even a television or radio advertisement. Whatever the costs are; they will be a factor in how profitable the event is.
Total Expected Raffle Ticket Revenue
The total revenue that your organization will receive as a result of the sales of raffle tickets is a factor of two things: the number of raffle tickets sold, and the price at which the tickets are sold. These are most likely the two variables over which you have the most control and the ones that are most important to match up directly to your customer group.
Number of Raffle Tickets
The number of raffle tickets should be decided upon while thinking about the number of people in your community who are likely to buy raffle tickets. It is important to remember that people often buy more than one raffle ticket and this can be encouraged by offering a discount if you buy a larger quantity of tickets ($5 each or 5 for $20 is an example of quantity discounts).
Price of Raffle Tickets
The price that you can charge for raffle tickets will depend on the prizes that you are offering and the demographic of your target market. Selling $100 raffle tickets to college students might be a long shot as would be selling $15 raffle tickets for a chance to win a DVD. When deciding the price you need to take into consideration how much the prizes would be worth to most of your participants. It will also help boost sales if the ticket price is a convenient amount (most people do not want to pay $3.76 for a raffle ticket).
Finalizing Price and Quantity of Raffle Tickets
Once you have an idea of the price that people will pay for your tickets and how many you can sell, you can calculate how much money you can earn. First, add up all of the costs of your event. As an example, $75 for Raffle Tickets, $500 for prizes, and $50 for additional marketing materials would give us a total cost of $625. The next step is to add the fundraising goal to that value. If we wanted to raise $2000 we would add that to the $625 that we already have spent to get $2625.
Calculate Price of Raffle Tickets
Once we have the total revenue to be raised ($2625) we can find out what the price of the tickets would need to be for a given quantity of raffle ticket sales. To do this we divide the total revenue by the number of tickets. As an example, if we thought that we could sell 1000 raffle tickets we would need to sell each one for $3.63 to reach our goal (I would recommend that we round up to the nearest dollar).
Calculate Quantity of Raffle Tickets
To calculate how many raffle tickets we need to sell we can divide the total amount of revenue by the price of the tickets to find out how many tickets we need to sell. In our example, if we wanted to sell each ticket for $5 we would need to sell 2625/5= 525 tickets to meet our goal. Again I recommend always rounding up as most organizations can deal with extra money easier than they can with too little money.
This simple calculation will make it easier to plan profitable raffle ticket events that do not leave you in the dark.