How to Price Raffle Tickets
2022-01-01
Fun fact: Research shows that most nonprofit organizations that hold raffle prize drawings don’t know how much money they’ll raise until after the big event. This is problematic since sometimes that means despite great prizes and tons of ticket sales, they might not come close to meeting the fundraising goal.
Set yourself up for a successful raffle benefitting your good cause with a raffle ticket price that considers all the factors. We’ll show you how.
Pro tip: Before selling a single ticket, make sure your raffle is in line 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, handy raffle ticket formula calculator tool you can use! (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 is really helpful:
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How to price raffle tickets
Fundraising Goal
First things first, it’s essential to know how much profit 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 raffle tickets professionally produced, or use standard double roll tickets, there will be fees incurred. So, even if you’re planning to print raffle tickets yourself and plan to buy perforated paper and an ink cartridge, don’t forget to factor in those raffle ticket printing costs!
Pro tip: The look and feel of your raffle tickets affect perceived value. Check out our hundreds of pre-designed, customizable raffle ticket templates. They make getting great, quality tickets at a great price easy!
Raffle Prize Costs
To minimize costs, 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 part of the cost of your raffle’s prizes. Be sure to include this in your calculations!
Distribution costs
Distribution costs include all of the fees related to marketing and selling your raffle tickets. This could be printed posters or even a television or radio advertisement.
Total Expected Raffle Ticket Revenue
Raffle ticket sales revenue is a factor of two things—first is the number of tickets, the second is the price at which they’re sold. These two variables should match up to your target customer.
Quantity of raffle tickets
Think about how many people are likely to buy raffle tickets. How many people are in your community? Network? Do you have a team of ticket sellers or are you on your own? Will lots of people want a chance to win your grand prize?
Pro tip: Supporters will purchase multiple tickets when there’s a quantity discount. For example, you could sell raffle tickets at $5 each or five for $20.
Price and your customer
Figuring out a good price for your raffle tickets is dependent on the prizes offered and your target demographic. Consider how much the prizes are worth to most of your potential ticket buyers. As an example, selling $100 raffle tickets to college students or $15 raffle tickets for a chance to win an Ishtar DVD might make ticket sales challenging.
Pro tip: Make sure the raffle ticket price is a round number (most people don’t want to pay $3.76!)
Finalizing price and quantity
First, add up all the prize drawing costs. So, 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.
Calculate the fee of raffle tickets
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 (or $3.00).
Calculate the raffle ticket quantity needed
To calculate how many items 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 raffle tickets. Again, we recommend rounding up!
Ready to dive in and get tickets for your prize drawing? We’d be honored if you placed your order for custom raffle tickets with Eventgroove! Choose from hundreds of ticket templates, several different colors of double roll raffle tickets, or engage our team to create a design from scratch. No matter what, you can expect great prices, excellent quality, and fast turnaround—satisfaction is guaranteed.
P.S. Need to figure out right price for admission tickets? Check out our event ticket price calculator!
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