How to Price Raffle Tickets
20/10/2023
Raffle ticket prices can make or break your nonprofit organisation’s fundraiser. Too high, and despite great prizes, you might not sell enough tickets. Too low, and even though you make tons of ticket sales, you still may not reach your fundraising goal.
Pro tip: Before selling a single ticket, make sure your raffle aligns with your area’s raffle laws.
How Much Should Raffle Tickets Cost?
How much you sell raffle tickets for is directly related to your fundraising event’s goals. Below, we break down all the factors contributing to raffle ticket pricing, plus there’s a free raffle ticket price calculator you can use! (Click each category to jump.)
- Fundraising Goal
- Raffle Ticket Costs
- Raffle Prize Costs
- Raffle Ticket Distribution Costs
- Total Expected Raffle Ticket Sales
- Number of Raffle Tickets
- Price and Your Customer
- Finalising Raffle Ticket Price and Quantity
- Calculating Raffle Ticket Price
- Calculating Raffle Ticket Quantity
Additionally, our raffle ticket calculator is really helpful. Just plug in your fundraising activity’s unique numbers, and you’ve got a suggested raffle ticket price.
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How to Price Raffle Tickets
Fundraising Goal
First things first, it’s essential to know how much money your nonprofit organization aims to earn. This value is your fundraiser’s ideal net proceeds minus its costs.
Raffle Ticket Costs
Whether you print them yourself, have custom tickets professionally produced, or use clock room tickets, there will be fees incurred. So, even if you’re planning to buy perforated paper and an ink cartridge to print them yourself, don’t forget to factor in those raffle ticket printing costs!
Pro tip: TThe look and feel of your tickets affect your raffle’s perceived value. Professionally printed raffle tickets make a great impression and can help legitimize your fundraiser. Check out our hundreds of pre-designed, customisable raffle ticket templates. They make getting great, quality tickets at a low price easy!
Raffle Prize Costs
To minimise spending, try to solicit raffle prizes from local businesses and contacts (here are some excellent raffle prize ideas!). That said, sometimes you may need to pay part of the cost of your raffle’s prizes. Be sure to include any purchased prizes in your calculations!
Raffle Ticket Distribution costs
This includes all the fees related to marketing and selling your raffle tickets. For example, if you print posters r pay for social media advertising, that’s considered a distribution cost.
Total Expected Raffle Ticket Revenue
Raffle ticket sales revenue is a factor of two things—first is the number of tickets, and the second is the price at which they’re sold. These two variables should match up to your target customer. (More on price and your customer below)
Number of Raffle Tickets
How many people are likely to buy your raffle tickets? One question you can ask yourself to figure this out is to estimate how many people are in your community and network. Next, factor in whether you have a team of raffle ticket sellers or selling them all yourself. Finally, your grand prize can affect ticket sales. If it’s a broadly exciting one, lots of people will want a chance to win.
Pro tip: Supporters will purchase multiple tickets when there’s a quantity discount. For example, you could sell raffle tickets for £5 each or five for £20.
Price and Your Customer
Figuring out a good raffle ticket price is dependent on your target demographic. Consider how much your prizes are worth to potential ticket buyers. As an example, selling £100 raffle tickets to university students or £15 raffle tickets for a chance to win an Ishtar DVD might make ticket sales challenging.
Pro tip: Make sure your ticket price is a round number (most people don’t want to pay £3.76!)
Finalising Price and Quantity
First, add up all the prize drawing costs. For example, if you add together £75 for raffle tickets, £500 for prizes, and £50 for additional marketing materials, you’d have £625. Next, add the fundraising goal to that value. In this instance, the goal is to raise £2,000, so the total is £2,625.
Calculating Raffle Ticket Price
To ascertain the necessary item 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 (you can round up to £3.00).
Calculating the Raffle Ticket Quantity Needed
To calculate how many items need to be sold, divide the total 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 raffle tickets. Again, we recommend rounding up!
Ready to dive in and get tickets for your prize drawing? Order custom tickets or run an online raffle with Eventgroove!
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