When you are charity fundraising, 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 the results compared to the promises that were made to justify the cost. Well, you are not alone.
Many companies for charity fundraising 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 an agreement while establishing an acceptable working relationship
Today, forward-thinking charity fundraising 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 charity 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 for charity fundraising. 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 the 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 circumstances.
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 for Charity Fundraising
Within our performance pricing approach for charity fundraising, 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 the length of the auction or monies raised.
- Add donations and live auction items, to the charity fundraising silent auction invoice at just 1.5% for the 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 charity 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.
