►Raffle pricingMay 1, 2015 - Author: Jenelle Taylor, CAI BAS
Recently a client asked me about raffle (Chance to Win drawings) pricing.
“I found this on-line as a guideline to selling tickets. Does this make sense?
Raffle ticket sales: 3 tickets for $5, 6 tickets for $10 and finger tip- to-finger tip $20″
Here’s my take:
1. Raffle chance pricing depends on the value of the prizes to be won.
2. Calculate the math equation: How much do you want the raffle to raise (have a goal), who will be asked to buy tickets and what pricing feels exciting to them, and how many tickets (at what level) can you expect to sell? PRICE x QUANTITY = MONEY RAISED
3. In the example you found, “3-$5 and 6-$10” are the same odds, so there’s no incentive to spend $10 rather than $5.
4. The PURPOSE of unequal odds (increased chances for paying more) is to wildly slant the odds in favor of those more generous. We want to encourage folks to donate more. In Florida (and other states-check your state gaming statutes*) all chances to win do not have to be equal.
5. So, I like
3 – $10, 8 for $20, or fingertip-to-fingertip for $40.
That way the focus is just on selling $40 worth, and if someone is considering $20, have them grab a friend and get tons more chances by splitting the fingertip-to-fingertip (which might be 40-ish tickets)
If the prize(s) are smaller, you could go with 2-$5, 7-$10, fingertips for $20
*A reminder to always know and follow your state regulations on raffles, which often fall under gambling policies. In some states, nonprofits are limited to one per year or need a special license. In Florida (and other states) drawings are required to have a “no purpose necessary to be entered” option, which is why setting any pricing for a chance drawing must be disclosed as a “suggested donation” See the Florida statute here, and happy fundraising!