Packaging and pricing your corporate project effectively. Layla Moosavi November 2016
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1 Packaging and pricing your corporate project effectively Layla Moosavi November 2016
2 Packaging and pricing a project effectively is crucial to ensure that as an organisation your proposal stands out from the crowd, and you have covered all your costs when pricing. This session look at techniques you can think about when packaging and pricing your project and places particular emphasis on sponsorship.
3 Outcomes Understanding the importance of pricing What elements do we need to think about when pricing? What are the benefits of pricing? How to be objective when packaging a project How does sponsorship packaging differ from other types of fundraising applications?
4 Fundraising Definition Fundraising (also development) is the process of soliciting and gathering contributions as money or other resources, by requesting donations from individuals, businesses, charitable foundations, or government agencies. (wiki)
5 Sponsorship- Definition Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property. (Wikipedia) It is not a philanthropic donation. Sponsorship is where the company will expect something in return it is a similar to a business transaction where both parties expect benefits in return.
6 Corporate Fundraising Company Donation/CSR Application process Criteria based Requires evaluation report CSR may include volunteering and Pro-bono Employee engagement Match funding and Pay roll giving Events and charity of the year Can be similar to large trust and foundations Not a business transaction It is a philanthropic donation International and National criteria Local giving Sponsorship Company Donation/CSR Application process Criteria based Requires evaluation report CSR may include volunteering and Pro-bono Employee engagement Match funding and Pay roll giving Events and charity of the year Can be similar to large trust and foundations Not a business transaction It is a philanthropic donation International and National criteria Local giving
7 Pricing and packaging
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9 Packaging- definition (Wiki) Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing packages.
10 Analogies Great CV.. Boring cover letter
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17 Pricing- Definition (wiki) Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the market place, competition, market condition, brand, and quality of product. (wiki)
18 Pricing (wiki) Pricing is a fundamental aspect of financial modeling and is one of the four Ps of the marketing mix. A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market. [1] Pricing is one of the most vital and highly demanded component within the theory of marketing mix. [2] It helps consumers to have an image of the standards the firm has to offer through their products, creating firms to have an exceptional reputation in the market. The firm s decision on the price of the product and the pricing strategy impacts the consumer s decision on whether or not to purchase the product.
19 Pricing (wiki) When firms are deciding to consider applying any type of pricing strategy they must be aware of the following reasons in order to make an appropriate choice which will benefit their business. The competition within the market today is extremely high, for this reason, businesses must be attentive to their opponent s actions in order to have the comparative advantage in the market. The technology of internet usage has increased and developed dramatically therefore, price comparisons can be done by customers through online access. Consumers are very selective regarding the purchases they make due to their knowledge of the monetary value. Firms must be mindful of these factor and price their products accordingly. [3]
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21 Cost considerations Your time Your given expenditure budget Your expected target Internal costs Insurance Health and safety Food and drink legal Brand PR and advertising Equipment Other staff time/hire Available resources for project delivery Experience Organisational financial capacity
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23 Unrealistic expectations Good, fast and cheap Clients naturally want it all, high quality - delivered fast - and at a low cost However, if you are delivering on all 3 of these requests, you are most likely going to lose out
24 Essential Partnership Elements Both parties Agree/agreement Mutual interest Achieving Mission Goals Give and take Responsibility Authority Respect Listening Research Monitoring Success Trust Clear Communication Information made public (transparency) Joining forces Responsibility Negotiation Evaluation Understanding Preparation Information
25 Preparation is key to success Preparation Thinking out of the box Mutual respect Transparency Understanding your organisation and your funder Information and research Pricing and resource check Confidence and room for negotiation When to say no
26 Internal and external Preparation In Front of an Audience
27 Internal preparation Understanding your organisation Case for support Funder & resource audit Planning Strategy Organisation and fundraising synergy
28 Understanding your organisation Vision and Mission Objectives Positioning Strategy Ethics/values
29 Case for Support What is unique about your organisation (USP)? Are there similar organisations that do what you do? How does your organisation stand out and differ from similar causes and organisations or service providers? What are the specific needs of your organisations/project? How many people do you directly help? Are you national or local? If you did not exist what would happen? Useful statistics about the need and the problem? Is there a current gap you are trying to fill? Are you a leader in your field? What is your objective and why do you need the funding?
30 What kind of partnership benefits can you offer a company? Be objective Think outside the box
31 Putting yourself in companies shoes Charity audience reach-direct and/or indirect? Is the charity demographic group of interest to a company? Does charity reach any particular demographic sectors? How beneficial is brand association to a company? Does the charity offer any money can t buy experiences? How can the company potential earn more sales and revenue? Are there other ways to get the company on board as starting point? Are there any CSR benefits? Are there any employee benefits? Any client retention benefits?
32 Any PR or sales benefits for the company? Any potential celebrities involved? Can both parties offer from a pro-bono/in-kind experience? Could a supplier benefit from getting involved Can charity history/reputation make a difference?- old or new charity? Can you show case studies and examples of what has worked? Can you focus on online partnership? Is the charity a leader in its field? Is there anyone else offering similar services? Can a consortium work?
33 Business case for support Charity audience reach- direct and indirect Charity's demographic group of interest to a company Does the charity reach any particular demographic sectors? How beneficial is brand association to a company? Does the charity offer any money can t buy experiences? Do you share the same values? How will this be cost effective? Will there be a return on investment? What is your USP?
34 What can you offer a company? Celebrities PR Target demographic/test marketing/product placement Sales revenue Advertising platform Consortium Online partnership CSR and pro-bono Synergy Membership/access to members Employee retention/motivation/recruitment Corporate Hospitality Brand
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39 Preparation Understanding your potential sponsor- know your audience/funder Invest time in finding out about them Approaching potential sponsors effectively Content of initial /phone conversation Preparation for meeting prospective sponsors prepitch stage Preparing the pitch/proposal Presentation Relationship building to long term partnership Cultivation and evaluation
40 Rent Salary Accountant Legal cost Bills Computers Photocopying Marketing Room Hire General expenses Core costs
41 Visualise (Turn boring to interesting) Rent What happens in that space Staff salary How many people directly benefit from the work carried out Marketing What impact does the message have
42 Standing out from the crowd Attracting attention Making your project/cause transparent yet relatable Thinking creatively and outside the box Visualisation of project/cause
43 Glossary Overheads (indirect, Core, central support): costs which are necessary for the organisation to operate, but do not relate specifically to one project. E.g management, administration, premises costs Capital costs: buying equipment, furnishings, E.g computers, a minibus or new premises All other costs are revenue costs. Revenue costs: incurred in the day-to-day running of the organisation and its projects. Revenue costs can be overheads or direct project costs. E.g. stationery, rent, heat phone bills Also factor in depreciation and inflation
44 Glossary- Big Lottery Fund Full cost recovery : securing funding for or recovering all your organisation s costs, including the direct costs of your projects and all your overheads. In full cost recovery your organisation s overheads are shared among your organisation s different projects. The full costs of your project are all the costs directly relating to the project plus the project s share of the overheads. Project -services and facilities that your organisation provides. Ask the question: what do we do? Research identify your projects Projects can be ongoing or may run for a limited period of time. Direct Project Costs: clearly and directly incurred as a result of the project. E.g. the salaries of project staff, their travel, project materials,
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