One of the misconceptions about cookie dough fundraisers is how much profit your group can make. No matter how often a website talks about profit lots of people assume that their group will make 50% profit. So I thought it might be helpful to talk about profits and cookie dough fundraising.

The fact is that groups can and do make 50% profit selling cookie dough but those groups are selling quite a few tubs or boxes. Profits can range as low as 25% and as high as 60% depending the program you choose. Why such a variance in profits?

Believe it or not one of the highest costs associated with cookie dough – especially frozen products – is the cost of shipping. The minimum freight costs to ship a frozen order is $250 or more. Obviously the more weight the higher the cost of the total shipment. But once a shipment has reached a certain weight and the minimum charges have been absorbed the lower the cost gets on a per tub basis.

For example let’s look at a group that sells 100 tubs of cookie dough. If the minimum shipping charge is $250 then the cost per tub is increased $2.50 for each tub. That cost needs to be covered somewhere.

So over the years cookie dough fundraising companies have determined instead of precluding smaller groups from selling cookies they would instead create tiered pricing where the cost of freight could be reduced for larger shipments. When you think about it most companies offer quantity discounts and cookie dough is no different.

So before you start a cookie dough fundraiser take a good look at the profit or cost chart provided and honestly estimate how many tubs your group can really sell. That will tell you how much profit might be realistic.

Click here for information on the best selling cookie dough fundraiser.

 

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Posted on 04 June 2012

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