What would you pay?

[AdamZ]

Some may remember the thread a month or so ago regarding a plane raffel for a charitable organization. Some here may also know I am president of such an organization and while putting the word out for a plane to raffel we were given a very generous offer by a top line aircraft interior shop who has offered to donate a new interior for a four place aircraft valued at $10,000.00 it could also be credited toward a 6 place interior.

We think we like to sell raffel tickets for the interior rather than auction it off. We would limit the number of tickets sold but since we are new to this we are trying to figure price points and number of tickets.

We would start the Raffel in April and end it at a big event in September 2013.

Its a bit different than buying a ticket for a plane as I think one would be a bit more geographically limited. It may be worth bringing a plane to PA from say NC for the interior but not from CA.

So I was thinking to limit the sales to 500 tickets at $100 each. I'd really be interested to hear everyones comments. Is that a sweet spot or should we go up to 1000 tickets at the same or lower price? Should we sell less at a higher price? State rules require us to do the drawing on a date certain rather than when all tickets are sold so we could conceivably sell less than the total limit by the drawing date.

Thanks for your input everyone.

 

[bnt83]

Some may remember the thread a month or so ago regarding a plane raffel for a charitable organization. Some here may also know I am president of such an organization and while putting the word out for a plane to raffel we were given a very generous offer by a top line aircraft interior shop who has offered to donate a new interior for a four place aircraft valued at $10,000.00 it could also be credited toward a 6 place interior.

We think we like to sell raffel tickets for the interior rather than auction it off. We would limit the number of tickets sold but since we are new to this we are trying to figure price points and number of tickets.

We would start the Raffel in April and end it at a big event in September 2013.

Its a bit different than buying a ticket for a plane as I think one would be a bit more geographically limited. It may be worth bringing a plane to PA from say NC for the interior but not from CA.

So I was thinking to limit the sales to 500 tickets at $100 each. I'd really be interested to hear everyones comments. Is that a sweet spot or should we go up to 1000 tickets at the same or lower price? Should we sell less at a higher price? State rules require us to do the drawing on a date certain rather than when all tickets are sold so we could conceivably sell less than the total limit by the drawing date.

Thanks for your input everyone.

I usually pertty cautios of the raffle ticket biz, there are lots of scams out there. $100 seem very steep tho.

 

[AdamZ]

I usually pertty cautios of the raffle ticket biz, there are lots of scams out there. $100 seem very steep tho.

Thats why I'm asking the question. From my perspective I think $100 for a 1 in 500 chance of winning a $10,000 interior is a good deal, expecially since a known and respected charitiable organization is running the raffel and will benefit. I fully expect and an seeking divergent opinions. The raffels run by such organizations are registered with the state and can be verified. Those run by Bubba's ferret rescue are the ones that are a bit scary. So if $100 with a 500 limit is too steep what ( if anything would entice you?)

 

[JasonCT]

Well IMO I look at it like this....there are many raffels for $100.00 tickets that get you a plane. I know it's a 10K interior (and a nice donation!), but it doesn't have the same umph as a plane to me.

I'd buy a ticket at $50.00 though.

 

[Ted]

I think that $100 is not unreasonable for a ticket price, but that's a relatively large number of tickets. You're looking at grossing $50k on a $10k item. That said, some people might not care or think that's reasonable.

If I needed an interior, I'd buy a ticket.

 

[pilot117]

I think many of us who would buy such an expensive raffle ticket for something like an interior would do it more as a donation to the charity with no real intention of winning. If others concur with that statement, I'd be more inclined to ask the question of how appealing is the charity to donors. I'd also worry about falling well short of your fund raising goals knowing that PA is forcing you to set a drawing date. You're going to need a dedicated "sales force" to make it happen I think.

Many here probably know about the charity you represent. I don't though. If I like what the charity is doing when I know more about it, I'll buy a ticket from you @ the $50 or $100 price point. If the charity is working to further something that I oppose, no price is really going entice me to purchase a ticket.

 

[AdamZ]

Good thoughts all. As a comparison I belive Wings of Hope sold 3000 raffel tickets at $50 each for the Cessna 150 they just gave away ( to Josh from POA no less)

Its a delicate balance between the price and the right number of tickets. I'd think $100 would be a no brainer for someone that is in the market for an interior or who really needs one that is the low hanging fruit . But then there are those that are not in the market for a new interior but have an older passable interior who thing sheesh for $50 opr $100 I have a decent chance at revamping my interior. Or perhpas the pilot who wants to sell and wants the new interior to boost the "ramp appeal" That is the group that I think needs to be sold as those that Need and are in the market as I said low hanging fruit.

Thanks for your comments everyone. Keep em comming.

 

[John221us]

It seems to me that you would get non-pilots buying tickets to win an airplane, thinking they could just resell it. That would not be the case with an interior. In fact, it would have very little resale capability. You pretty much need to own a plane to be interested. That is going to severely limit your ability to sell tickets.

 

[AdamZ]

It seems to me that you would get non-pilots buying tickets to win an airplane, thinking they could just resell it. That would not be the case with an interior. In fact, it would have very little resale capability. You pretty much need to own a plane to be interested. That is going to severely limit your ability to sell tickets.

True it will limit them but there is still a market. Were just trying to get the right price and number.

 

[Gary]

It seems to me that you would get non-pilots buying tickets to win an airplane, thinking they could just resell it. That would not be the case with an interior. In fact, it would have very little resale capability. You pretty much need to own a plane to be interested. That is going to severely limit your ability to sell tickets.

Very good point, it does limit the market.

True it will limit them but there is still a market. Were just trying to get the right price and number.

Tough to figure out just what that number is! Good idea though!

Gary

 

[Ted]

Given the nature of Adam's charity, I think they have a good audience with pilots, which would improve their odds of getting purchases. Plus it's something that many planes either need or would at least benefit from.

With a charitable auction like that the intent is that people will pay more than they might otherwise in order to help out the cause, and if they can get an interior out of the deal, even better. I think this works for many people who make donations anyway.

 

[AuntPeggy]

I don't need a new interior since we just did ours. Nevertheless, I would not be willing to offer $100 for a chance if we were needing a new one. Asking for $50,000 for a $10,000 item that has been donated just seems too much.

 

[AdamZ]

I don't need a new interior since we just did ours. Nevertheless, I would not be willing to offer $100 for a chance if we were needing a new one. Asking for $50,000 for a $10,000 item that has been donated just seems too much.

Well thats kind of the point of charity raffels vs. a charity auction. A charity auction you may bid say $150 for an item valued at $200 and get a deal. You get an inexpensive widget, The charity makes $150 and the donor gets a deduction for the cost of his item.

In a charity raffel you get a chance at an inexpensive price for an item. I belive the recent Cessna 150 that Josh won was $50 per chance and I think they sold 3000 chances. Does anyone really think that the C150 hell any C150 was worth $150,000?

 

[bluesky74656]

I think your price point and number of tickets seems about right, although I agree with the thoughts that giving away an interior limits you to plane owners in need of an interior, which is a subset of plane owners, which is a subset of pilots, etc... I would also wonder what 500 is as a percentage of your member base.

But, given that you are an charitable aviation organization, I don't think selling tickets will be that hard. I agree that most people will see it as a $100 donation rather than as a raffle.

I'd also wonder what $50,000 is as a percentage of what you actually need, but seeing as your prize is donated you're pretty much always going to be ahead of your break even point, and any money is better than no money.

So, I would go ahead with it, understanding that you may not sell all 500 tickets, but anything is better than nothing.

 

[JHW]

it's a pretty niche item you're giving away. The first question is, can you find 500 people who need and want a new interior?

 

[RJM62]

I think you might get better revenue with a lower price per ticket, but a discount on multiple tickets. Something like $25.00 / ticket or four for $75.00. Something along those lines.

Just an idea. I've never run a raffle, so I really don't know what I'm talking about.

-Rich

 

[AdamZ]

I think your price point and number of tickets seems about right, although I agree with the thoughts that giving away an interior limits you to plane owners in need of an interior, which is a subset of plane owners, which is a subset of pilots, etc... I would also wonder what 500 is as a percentage of your member base.

But, given that you are an charitable aviation organization, I don't think selling tickets will be that hard. I agree that most people will see it as a $100 donation rather than as a raffle.

I'd also wonder what $50,000 is as a percentage of what you actually need, but seeing as your prize is donated you're pretty much always going to be ahead of your break even point, and any money is better than no money.

So, I would go ahead with it, understanding that you may not sell all 500 tickets, but anything is better than nothing.

Its not about a specific need but more a general fund rasing tool for the general fund or our patient emergency transport fund. Otherwise I agree with much of what you said

it's a pretty niche item you're giving away. The first question is, can you find 500 people who need and want a new interior?

I don't know but I think the question I'd ask is are there X number of people who think $100 or $75 or $50 or what ever is a worth it to get a 1 in 500 chance or 1 in 250 or what ever the number is at winning a new interior. Keep in mind that 500 is not what we "need" to sell but what we'd limit the number of tickets too could even be less say 300 or 250 I don't know

I think you might get better revenue with a lower price per ticket, but a discount on multiple tickets. Something like $25.00 / ticket or four for $75.00. Something along those lines.

Just an idea. I've never run a raffle, so I really don't know what I'm talking about.

-Rich

Great suggestion thanks Rich!

 

[AdamZ]

So I've gotten some interesting feedback but few answers to the question about how much you would pay for a chance and at what limit of ticket sales would something like this be attractive to you? Of course if your seats are covered in sheets because your stuffing is popping through its going to be more attractive than if your interior is just worn and old.

 

[John221us]

I think $100 is pretty good, if most of your target audience are business owners, where they could easily take advantage of the write off. For individuals, $50 would probably work better.

Edit: I don't think the limit on the number of tickets will make much difference to most people donating.

 

[ClimbnSink]

What John and others have said, there is a big dream with airplanes and buying a ticket has daydream value regardless of the odds. A new interior besides being limited to owners isn't very dreamy, anyone buying tickets will be taking a purely rational odds risk.

 

[bnt83]

Where do I have to leave the airplane assuming I win?

 

[AdamZ]

Where do I have to leave the airplane assuming I win?

It would be in PA so purchasing a ticket if your based in NE would not be practical.

 

[bnt83]

It would be in PA so purchasing a ticket if your based in NE would not be practical.

That's for me to decide :wink2:


TONS of airplane owners (maybe 40%??) are automatically out by those terms... Pacific Coasters

 

[bnt83]

When is the drawing? Maybe my 1940 Air Terminal Museum Cherokee needs and interior. I wont take delivery until July/August.

 

[flav8r]

Find a cheap Cessna 152 that is in desperate need of a new interior and combine it with your new interior offer and you'll have my attention plus the attention of a much larger audience for your Raffle.

Or start a thread with a poll that asks:
"Would you buy a raffle ticket for a new interior?".

Poll Questions:

• Yes I would
• No I would not
• Too much money
• Just what I'm looking for
• Good Odds
• Bad Odds
• I'll gladly give to your charity regardless of product being offered.

Good Luck in any case.

 

[flyingcheesehead]

It would be in PA so purchasing a ticket if your based in NE would not be practical.

Hey, for 10 grand I'd go a long way for a free interior! Good excuse for a trip, too.

Tell you what, if you do get any pacific coasters who are interested (or anyone else, for that matter) but don't want to fly their plane all the way to PA, I'll offer to ferry it for expenses.

 

[N747JB]

I have been involved in a couple car raffles, some worked and some didn't. First the item is donated so anything received above the cost of printing and advertising is pretty much net to the charity. Setting the maximum number of tickets at 500 is great, just be aware that the actual sales maybe closer to 2-300, still a great deal of money for your cause. My experience was direct selling, pretty much see someone and ask them to buy a $100.00 ticket, your situation may be different as it's likely these will be sold online and via message boards. In local direct selling situations we found that $100.00 ticket was just as easy or hard to sell as a $50.00 one. But, in your case, I think $50.00 may be an easier sell over the Internet.

 

[Henning]

Thats why I'm asking the question. From my perspective I think $100 for a 1 in 500 chance of winning a $10,000 interior is a good deal, expecially since a known and respected charitiable organization is running the raffel and will benefit. I fully expect and an seeking divergent opinions. The raffels run by such organizations are registered with the state and can be verified. Those run by Bubba's ferret rescue are the ones that are a bit scary. So if $100 with a 500 limit is too steep what ( if anything would entice you?)

Who is the target market for these raffle tickets? What is the demographic in numbers and income? $100 gamble is nothing to a lawyer but a lot to a retiree. 2000 $20 tickets is another point I would consider, lots more people will buy a $20 bet than $100. However, if you have a more limited market with deeper pockets, the 500 $100 tickets may be the most feasible.

 

[n1959]

Maybe besides the point, but I think a new engine would get my attention.

 

[LDJones]

The other issue with this is the question: "What exactly is a $10,000" interior?" Seems like there are a bunch of unknowns that could vary dramatically from airplane to airplane. A $10K six-place interior will likely be substantially different than a $10K two-place interior. Plus, you win a plane you bring it home. How far will people go for an interior job?

 

[poadeleted21]

The other issue with this is the question: "What exactly is a $10,000" interior?" Seems like there are a bunch of unknowns that could vary dramatically from airplane to airplane. A $10K six-place interior will likely be substantially different than a $10K two-place interior. Plus, you win a plane you bring it home. How far will people go for an interior job?

Nahh, they're going to rip the entire thing out and replace all of it for $10K. I think he mentioned 10K for a 4 place or 10K towards a 6 place.

MY plane has a 8/10 leather interior but I'd still buy a few 50 buck tickets if there were 500 spots. You might get me for 3 50 buck tickets. If you can get someone to throw in paint to sweeten the deal, I'd be a buyer also. You're kind of screwed in that you cant wait until all slots are sold. I'd probably try to set it up where you come out with 200% of the value at the end of the day, it's all profit. But, I understand wanting to milk it for all it's worth too. ehhh.. I dunno what I'd do.

 

[bluesky74656]

So I've gotten some interesting feedback but few answers to the question about how much you would pay for a chance and at what limit of ticket sales would something like this be attractive to you? Of course if your seats are covered in sheets because your stuffing is popping through its going to be more attractive than if your interior is just worn and old.

So, I'll answer your question then give more feedback.

I have no airplane, so buying a raffle ticket is useless to me. However, I would probably buy one at $100 just to support what you're doing.

In full disclosure, I used to run a raffle for an organization that sold $100 raffle tickets. Ours was a bit different as we didn't have the entire value of our prizes donated so we had to sell about 800 before we broke even. Our upper limit was 2600. Each ticket was eligible for multiple prizes, so our overall odds ended up somewhere around 1:200 depending on the year. Here are some of the lessons we learned:

1. To make the same amount of money at $50, we would have to sell twice as many. While we would sell more than at $100, our sense was that we would not be able to sell twice the number of tickets at that price point.
2. Only a small subset of people bought tickets only because they were good odds. Most people bought both because of the odds and because they supported what the organization was doing and knew that this raffle was our main source of income. The way I looked at it was that buying a ticket was a good way for us to be able to give something back for making a donation (although the IRS doesn't see it that way). Most people bought because they knew us and knew what we were about rather than because they really liked the raffle.

I think in your situation it's helpful that you don't have a specific need, as you can try it out and be happy with whatever amount you're able to come up with.

 

[AdamZ]

Find a cheap Cessna 152 that is in desperate need of a new interior and combine it with your new interior offer and you'll have my attention plus the attention of a much larger audience for your Raffle. ...

We'd love to raffle off a plane finding the right one at the right price thats the tough part. but you've given me some good ideas.

 

[iflyforfun]

MY plane has a 8/10 leather interior but I'd still buy a few 50 buck tickets if there were 500 spots. You might get me for 3 50 buck tickets.

+1

Last year, when I had my plane, I would have called the interior a solid 7. I certainly would have bought a ticket or three at $50. At $100, it depends on how easy it is to give you my money ... make me go through PayPal or something horrible like that and I'd likely pass. Use PayPal to accept a credit card and you would have taken me for some money.

In aviation, what's a few hundred dollars? Not to hard to imagine my beauty with an all new interior.

 

[flav8r]

Another raffle for an airplane, is anyone familiar with Wingedwarriors?

wingedwarriors.org