Performance-based Pricing and its Importance to Charity Fundraising

Pricing Strategy

As a charity fundraiser do you ever think you are paying too much for a product or service to help your efforts? Or feel trapped by a long-term contract? Perhaps you are disappointed with results compared to the promises that were made to justify the cost? Well, you are not alone.

Pricing Strategy

Many companies still determine their pricing using a once accepted method based on fulfilling their own needs first. This approach examines the cost of development, delivering the product to market, cost of sales, and other administrative expenses. And results in a pricing model based on the seller’s needs with little consideration given to the buyer.

Conventional pricing promotes the classic zero-sum scenario in which one party’s gain is the other party’s loss. The seller’s challenge is to minimize the buyer’s resistance and attempt to move both parties to agreement while establishing an acceptable working relationship

Today, forward thinking companies, more in touch with today’s “customer first” philosophy, focus their pricing goal on “mutual success”. Meaning equal success for both parties.

Approaching the pricing challenge in this manner usually leads to performance pricing. That is determining the cost of using the product by the revenue generated (or saved) by the customer. This is calculated by a percentage of the revenue – usually, 10% to 15% of the proceeds.

“Performance-based pricing helps improve the relationship between buyer and seller early and moves both parties to a level playing field.”

When we introduced MobilBid, years of serving the non-profit sector had taught us the importance of right-pricing our fundraising software. We understand the value of open, transparent, pricing that meets our needs and more importantly, the needs of the clients we serve.

Our goal was to develop a full-featured, easy to use mobile bidding platform that encouraged bidder participation and increased bidding for better results. Add to that objective, we wanted a solution to end the confusion and chaos of auction closing, billing, and payment.

Our pricing challenge was to offer the MobilBid platform at a cost that would be affordable to help charities and non-profits, large and small reach their goals without breaking the bank. We chose performance-based pricing.

“Performance pricing compensates the seller and buyer alike based on how well the product performs. The buyer also benefits because in our version, the only cost generated by a client is when the product is used.”

Performance pricing eliminates the confusion caused by complicated pricing policies, fine print, asterisks, number of users, frequency of use, and other scenarios that affect the price. And confuse the buyer.

From the beginning of the seller/buyer relationship, both parties are working toward the same goal and the seller retains a vested interest in the success of every use of the product.

Because cost of use is determined by the performance of the product, the buyer is confident they will not overpay for the service. Particularly in the non-profit sector no one should be held to a term contract if an event or campaign is compromised by uncontrollable circumstance.

Over time, Performance pricing moves buyer and seller to a level of communication, information sharing, and trust, seldom found in contract-based pricing agreements. This in turn leads to a higher level of cooperation and a much better record of success.

The MobilBid Difference

Within our performance pricing approach, prospects can request an account at any time with no cost and no obligation. An open account includes access to our full suite of features and unlimited use of the program.

  • New accounts are open and accessible to clients within hours.
  • MobilBid offers a hosted solution meaning there are no setup costs, system downloads or costly integration procedures.
  • We provide unlimited service, technical support, and easy to use setup resources.
  • Accounts are free of ongoing and upgrades cost.
  • Because there are no initial costs charges, new customers are under no pressure to decide when to start using the service.
  • Performance pricing allows customers the flexibility to pause the service at any time without penalty.

In addition to the benefits of MobilBid performance pricing.

  • Clients are charged 5.5% on silent auction proceeds.
  • We cap the cost of using the MobilBid platform at just $2500 per event with no limit on length of auction or monies raised.
  • Add donations and live auction items, to the silent auction invoice at just 1.5% for convenience of single billing through the MobilBid platform.
  • Each auction compiles and stores bidder contact information and bidding information for analysis and future planning.
  • We provide clients with a “Terms and Conditions” agreement and don’t use binding contracts.

MobilBid. Helping those who help others.

These quick insights are meant to help you overcome the challenges of managing a fundraising campaign and we hope you have found something worthwhile here. To find out more, you can check our website Resources area or call. Thank you for your interest in MobilBid.

Contact MobilBid today to discover how we can help you meet your fundraising goals.

MobilBid Ranked in Top 7 North American Mobile Bidding Platform Solutions

Recently, we were excited to learn that MobilBid had been included on a list of the seven most popular North American charity silent auction mobile bidding platforms. We were pleased with the news and want to share it.

OneCause, formally Bid-Pal, is a well-known U.S. company offering a suite of fundraising solutions to help non-profits plan and manage events to raise funds.

The company conducted a survey to determine the top seven mobile bidding platforms in North America using Alexa Rank, a global system that ranks millions of websites of various categories in order of popularity.

MobilBid came in fifth and was the only Canadian company to make the list.

Having compiled the information, OneCause prepared a product review on each of the companies. Within the review, the report offered the following comments on the MobilBid platform.

“A Canadian mobile bidding software platform that offers a host of auction solutions to help non-profits add efficiency to their events without sacrificing an enjoyable experience for their attendees.”

And MobilBid offers –

“Simple event creation tools that allow your non-profit to launch a customized auction event page without hassle (or tech expertise).”

“Checkout solutions to make closing out your auction an easier process. At the end of the event, bidders are automatically sent invoices for their items.”

What wasn’t mentioned is that MobilBid is bilingual English/French and processes both Canadian and American funds – and offers instant mobile payment.

You can read the full report by clicking here.

Try MobilBid Now!​

Join Our Real-Time Demo Auction.
Simply Text “demo” to 647-699-0053.

Questions? Want to chat?

Call Dale Carter at 1-855-202-4404   Ext. 4