Is School Product Fundraising A ”Tip Of The Hat And Wag Of The Finger?"

Three closely linked events this morning motivated me to get to my blog keyboard today:

1) I read a less than positive “Why school children should not sell products to raise money” article in one of the regional newspapers around here. I finished reading still sporting an obvious frown on my face around the house. 


2)Right after my wife asked me "What has you so annoyed in the paper today?" a delightful father and his sweet daughter came to my door. They came to ask me to order from a catalog of products to support the local elementary PTO Fund Raising sale for a class trip. I bought a bunch more than normal as a positive protest to the article I just read and felt better about the day ahead. 

3) A national telethon fundraising solicitation campaign called me on the telephone for a cash donation that was urgently needed because their budget was under funded due to the economy…. I politely did not donate  as I didn’t know the organization or telemarketer.

My “Tip of the Hat” Steven Colbert moment:

*School fundraising to me evokes warm and fuzzy nostalgic memories of when my mother and father helped me sell “stuff’ way back in my elementary school days. Seems to me this has been going on most of my life and I have fond memories of quality time during these events with my parents that are intangible and priceless.

*Later I experienced and connected with my sons doing the same. In fact I also read, on his biography, world famous artist Jeff Koons mentions he got his commercial start selling wrapping paper in primary school…………… not a bad commentary on his early education.

*To my knowledge, most professional school fund raising companies are run by many ex educators or former PTO volunteers. The professional conduct and ethics these legitimate CPG companies insist on appears to me to be a very high standard.

*Some retail companies, that are in less consumer sensitive channels of commerce i.e. mass market, club stores, drug stores, catalog companies, internet resellers, or retail outlets, would not survive the school fundraising business margin demands and service requirements now common place. 

*How many retailers belong to a nationwide trade association that polices itself and keeps current on government regulatory and child safety guidelines and laws?  Most active and legitimate school fundraising companies do.

*My pragmatic sense is the product fundraising selling experience prepares America’s youth to learn valuable work skills that are more and more demand in a national society that is becoming “service” and consumer oriented. 

*This also reinforces a sensitive and current news area in their favor as many American fundraising companies use American manufactured products.  Albeit on a much smaller scale imported product as do large retailers. (Reference, American printed magazines, wrapping paper, chocolates, cookie dough, candles, frozen foods, some stationary, coupon books, and giftware for example).

*What’s so wrong with youngsters learning a “work ethic” and earning their way for a cause?  We, our parents, and grandparents did school fundraisng. The greatest generation all seem to have turned out fine!, they did school fundraising………… This is not a new phenomenon in my view.

* Consumers (due to invisible hand of free enterprise, allowing PTO volunteers to choose which company they want) get a fairly priced, quality product delivered right to their door. In addition, the consumer knows a portion of the profits support the local community, their neighbor’s children.

A “Wag of the Finger” (credit to Steven Colbert again) to the anti School Product Fund Raising slants the reporter in question quotes in the article:

*Sorry to rant on this one recent Washington, DC reporter whose syndicated article (Anti  kids selling products  journalism, that should remain anonymous) but this is an unneccesary cheap shot to me.  Doesn’t  he realize the positive aspects of School Product Fund raising  and volunteering that has been going on since the beginning of the 20^th century? These  PTO Fundraising drives are as American as apple pie!

* A "wag of the finger" to any retailers in his article trying to hinder school fundraising.  They will come to realize that this marketing vehicle  is just another “channel of distribution” for already existing large retail companies, competitors, and brands they already know. Want your sales to go up instead of whining the economy is hurting you? Open new channels of commerce to include School Product Fundraising, leverage your brand, and get over yourself! Move on.

*This journalist in question should investigate how many tens of thousands of PTO volunteers work very hard around the USA to bring a little extra to the youngsters of our nation.

These unsung PTO heroes strive to create a well organized safe environment for the youngsters to help in times of need, and succeed very well at it!  This  lone negative journalist might be shocked at the massive volunteer efforts that are a positive force in the face of a struggling economy.  

Shame on you sir for missing this most important positive aspects of volunteerism today!  At least PTO volunteers are trying to make a better world for their local youngsters. WHAT'S NEXT FOR YOUR NEGATIVE ARTICLES? WILL YOU  NEXT QUESTION THE GIRLS SCOUTS FOR SELLING COOKIES?.......JMHO

Price, Quality, Delivery-Pick Any Two For 2010!

Interesting supplier/manufacturer trends in selling B to B to purchasing departments in 2010:

I just got back from an advisory assignment to spend time working an exhibitor client’s booth at a trade show in Florida and interacted with their patrons. The interesting thing for me was how much "back channel" gossip that went on between other supplier/exhibitors giving me valuable insight to why and how CPG manufacturers are going to sell purchasing agents who are buying products for 2010 reselling.

The backdrop of this sourcing/buying CPG trade show is probably "old wine in new bottles" to sharp purchasing agents, but seems a bit more active than ever to me, given the economy today:

This was a B to B consumer products trade show i.e. Christmas ornaments, kitchen ware, chocolates, magazine subscriptions, gift-wrap, pizza, cookie dough, promotional toys, frozen desserts, premium coupons, jewelry, etc all to be resold next year in 2010 to consumers through reseller companies who were the wholesale buyers at this trade show.

Regarding Price, Quality, Delivery, most purchasing agents rightfully want all three, but will be settling for various combinations of only two with the third category, arguably, being the supplier's major control card in 2010.

Price; this year I witnessed in discussion was the buyers would hit the supplier hard for price. The suppliers game was to throw the lowest price out to get the order then make it up on changing the size, quality, or packaging and making up the profits after the fact. The delivery variable is based on how much the buyer paid, shipping the higher paying customers first and putting them to the front of the line. The larger the "terms or dating" the further back the buyer got their goods or higher the price quote based on the "real cost of using the money". Quality control "Hard Specs" and vendor guides better be tight this year or there may be some interesting charge back battles.

Quality; This depends on how much the price was and when they wanted it. The better factories and workers go to the buyers who ordered early, and paid the highest prices. Quantity counts, but many suppliers need cash in early so they appeared to favor early orders and premium price offers.

Delivery; Many purchasing agents tried and some were successful in delaying the delivery dates to save on warehousing lines of credit, and have the option to cancel the orders if they were not turning. These show suppliers indicated to me they now react to P.O.s that have "stretched" delivery dates as a "cry wolf syndrome". They take product from those piles and give it to the companies that bring it in the earliest. The back orders and non shipments last year were at an all time high.

One last discount "trick" was the freight companies i.e. common carrier, overnight, air etc. I noticed a number of exhibitors were proud of the percentage discounts they negotiated for on cargo and shipping. What was interesting to me was the base charge per pound was different for all. Example: 60% discount off of $1.00 starting quote is 40cents....... for exhibitor "A's" freight. Exhibitor "B" got a 50% discount off .70 cents starting quote. You do the math! Who got the better deal????

2010 should be an interesting year, buyer beware!