Fun fact: Research shows that most organizations that hold raffles don’t know how much money they’ll raise until after the event. This lack of information is problematic, especially if you’ve got a financial target like most nonprofits. Set yourself up for success! Price raffle tickets with the right amount that considers your goal, cost, and target market. We’ll show you how.
How Much Should Raffle Tickets Cost?
How you price raffle tickets is relative to your goals and fundraiser. Below, we break down all the factors that contribute to arriving at the raffle ticket fee that’s right for your fundraiser. (Click each category to jump.)
- Fundraising goal
- Raffle ticket costs
- Raffle prize costs
- Raffle ticket distribution costs
- Total expected raffle ticket revenue
- Number of raffle tickets
- Price of raffle tickets
- Finalizing raffle ticket price and quantity
- Calculate raffle ticket price
- Calculate raffle ticket quantity
Additionally, our raffle ticket calculator below is really helpful:
How to price raffle tickets
First things first, it’s essential to know how much profit your organization wants the raffle to earn. This value should reflect your fundraiser’s ideal net proceeds minus its costs.
Raffle Ticket Costs
Whether you the raffle tickets yourself or have them professionally produced, there’s an associated cost. Subequently, those raffle ticket printing costs should be included in your calculation, even you’re simply buying perforated paper and an ink cartridge. Remember, the look and feel of your raffle tickets affect perceived value.
Raffle Prize Costs
To minimize costs here, try to solicit raffle prizes from local businesses and contacts, (here are some great raffle prize ideas!). That said, sometimes you may need to pay for part of the cost of your raffle’s prizes. Be sure to include this in your calculations!
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
Raffle ticket sales revenue is a factor of two things. The first is the number of tickets, the second is the price at which they’re sold. These two variables are likely the ones over which you have the most control should match up to your target customer (see Price of Raffle Tickets below!).
Number of raffle tickets
Think about how many people are likely to buy them. How many people are in your community? Network? Do you have a team of volunteers to help you sell tickets? Will lots of people want a chanve to win your raffle prize? t
Pro tip: Typically, supporters will purchase more than one ticket when there’s a quantity discount. For example, your raffle tickets could be $5 each or 5 for $20.
Price and your customer
Raffle pricing is dependent on the prizes offered and the demographic of your target market. Take into consideration how much the prizes would be worth to most of your participants. As an example, selling $100 raffle tickets to college students or $15 raffle tickets for a chance to win an Ishtar DVD might be a long shot.
Pro tip: Make sure the raffle ticket price is a round amount (most people don’t want to pay $3.76!)
Finalizing price and quantity
First, add up all the costs of your raffle fundraiser. So, for example, if you add together $75 for raffle tickets, $500 for prizes, and $50 for additional marketing materials, you’d have a total of $625. Next, add the fundraising goal to that value. In this instance, the goal is to raise $2,000, add to that the $625 in costs, and the total is $2,625.
Calculate the fee of raffle tickets
To ascertain the necessary raffle ticket price versus the number of potential ticket sales, divide the total revenue by the number of tickets. So, if we use the above example and estimate that selling 1,000 raffle tickets is viable, each one should cost $2.63 (or $3.00).
Calculate the raffle ticket quantity needed
To calculate how many raffle tickets need to be sold, divide the total amount of revenue by the ticket price. In our example, if we wanted to sell each ticket for $3, we would need to sell 2,625/3 = 875 tickets. Again, we recommend rounding up!
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