SMT Golf Outing Services

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Credit Card Processing Fee Reality Check

It is always shocking that tournament organizers worry about 2.5-3% credit card processing fees. You always hear –“We’re losing money on every transaction!”

 

This perspective misses the larger reality: you’re not losing 3% of revenue; you’re gaining 100% of transactions that wouldn’t happen without card acceptance.

 

Cash-Only Raffle Example:

  • 144 golfers attend
  • 40% carry enough cash for raffle tickets
  • Average cash purchase: $20
  • Total revenue: $1,152

 

Card-Accepted Raffle Example:

  • 144 golfers attend
  • Up to 90% participate when cards accepted
  • Average card purchase: $40 (impulse purchases increase)
  • Processing fee: 2.9%
  • Net revenue: $5,200 – $151 credit card fees = $5,049

 

The value of using credit card readers and QR Codes more than offsets processing fees many times over. This same principle applies to every revenue stream that you have.

 

Card acceptance doesn’t cost money. It makes money. Lots of it.

Outing Price Based on Value, Not Cause

Some organizers believe that a “more important” cause justifies higher pricing, or conversely, that a “less critical” cause requires lower pricing to attract participants. This is backwards.

 

Price your event based on:

  • The quality of the golf course and amenities
  • What comparable golf outings in your area charge
  • The total value package you’re delivering (golf, food, gifts, prizes)
  • Your actual costs plus appropriate margin

 

Your cause should not be a pricing variable. A well-executed event for grade school tables should command the same price as a well-executed event for medical research if the golf course quality, amenities, and overall experience are equivalent.

Critical Golf Outing Pricing Psychology

Here’s where many golf fundraisers fail before they even begin: They under price their event out of fear that people won’t attend if the cost is “too high.”

 

The psychological reality is exactly the opposite. People and golfers associate price with value. An under priced golf event at a golf course not known for quality or top conditions sends a subconscious message: “This isn’t a quality experience.” It attracts bargain hunters rather than committed supporters. And perhaps most damaging from a psychological standpoint, it leaves your sponsors feeling like they’ve overpaid. You will end up working too hard just to try and get them back to participate next year.

 

Think about this scenario: Your golf course charges you $110 per person for golf, food, taxes and tips. You charge participants exactly the same $110, planning to make all your profit from games, mulligans, and raffle tickets. What psychological message have you sent?

 

  1. To participants: “This is barely worth $110”
  2. To sponsors: “Other people are getting in for $110, but we’re asking you for thousands”
  3. To your organization: “We have no margin for error”.

 

Now consider the psychological impact if weather forces a cancellation and less than half of your registrants show up. You’re potentially thousands of dollars in the hole because you took no margin on entry fees.

 

The psychologically sound approach: Price your event at approximately double your hard costs per participant. If the golf course charges $110, price your event at $200-$220 per person. This accomplishes multiple psychological objectives:

 

  1. It signals quality and value to potential participants. Take the time to point out the value.
  2. It provides financial cushion for the inevitable challenges and changes
  3. It allows for early bird discounts and other promotional strategies without going underwater
  4. It better aligns the psychological value exchange—make people believe they’re getting hundreds of dollars worth of value
  5. It creates proper context for sponsorship investments—sponsors don’t feel overcharged when they see that even regular participants are making substantial contributions.

The Better Approach: Ask, Don’t Tell

The most successful golf fundraiser organizers approach corporate sponsorship from an entirely different psychological angle. Instead of presenting a menu of pre-set options, they explain their fundraiser and ask questions:

“Our event will have 144 players—primarily business owners, corporate executives, and professional decision-makers from our community. They’ll be engaged with our event for a full day. What would be most valuable to you? How would you like to interact with these participants? What would make this a successful marketing investment for your business?”

This approach accomplishes several psychological objectives:

  1. It positions the sponsor as the customer, not the charity. You’re offering them something valuable, a position of power in the event, not asking for a handout.
  2. It demonstrates respect for their business acumen and marketing expertise. You’re acknowledging that they know their business better than you do.
  3. It opens creative possibilities that your predetermined packages would never accommodate. A craft brewery might want to sponsor the beverage cart exclusively and will pay to do so. A wealth management firm might want to sponsor a skills clinic before the tournament. A medical practice might want to provide free blood pressure screenings at the turn.
  4. It naturally leads to higher investment and engagement because sponsors are purchasing exactly what they want rather than compromising on a package that sort-of fits their needs.

The psychology here is powerful: People place higher value on solutions they help design than on pre-packaged options presented to them.

What Are Consignment Items & Why Do They Raise More Money At An Event Or Auction

CONSIGNMENT

Choosing between consigned or donated items for your next fundraising auction? Go with consigned. Here’s why:

DONATED ITEMS CONSIGNED ITEMS
Excitement Factor More traditional; similar from auction to auction; you get what you get Bring interest and hype to the auction experience; choose the items best suited for your audience
Selling Potential Can be sold only once Can be sold multiple times at the same auction; a recent gala’s auction sold our Alaska Cruise 8x, netting over $56,000 in funds
Acquisition Involves work in asking and doing favors Does not include any work and is easy and simple when you use BlueTree

Organizing a fundraiser can be a big undertaking, especially when trying to find high-value items that will attract bidders and donors. A way to make your fundraiser successful while minimizing risk is by adding consignment items to your event. Our customers tell us over and over again that including unique travel and once in a lifetime experiences adds the “wow factor” and excitement to their events. They not only bring the “wow factor “ but also excitement about the auction whether it’s a silent or an auctioneer led auction.

What Are Consignment Items?
Consignment items are products or experiences provided by a third-party vendor, like BlueTree Marketing that your organization can include in your auction or fundraising event. You only pay for these items if they sell, meaning there is no upfront financial commitment. This allows organizations of all sizes to feature high-value items without the burden of purchasing inventory.

Benefits Of Using Consignment Items In Your Fundraiser Or Auction

Attracts More Bidders
Consignment items often include exclusive or luxury experiences, such as vacation packages, VIP event tickets, or autographed memorabilia. Even if participants realize that a trip to the Super Bowl is outside their budget, the fact that such a trip is being auctioned lets people know that there is the potential to win this event depending on the bids. People also believe that there is a chance that an item they want may not attract bidders, therefore, they can offer an inexpensive bid. This is another factor that attracts people to your event or auction.

No Financial Risk
One of the biggest challenges of fundraising is securing desirable items or experiences without going over budget. With consignment items, your organization only pays for items if they are sold, which reduces the financial risk.

Easy To Source & Manage
Finding donation items can be time-consuming and challenging. At BlueTree Marketing, we simplify this process by providing a curated selection of items that are ready to be included in your fundraiser.

Boosts Fundraising Profits
What’s great about selling consignment trips, is that you can sell it multiple times at your event, boosting your fundraising profits even more!

An example of this could be that at your live auction there’s a bidding war happening for an exclusive trip, and everyone bidding wants the trip so bad that the auctioneer sells the trip to all bidders. Not only does everyone get an amazing trip experience, but you end up with even more profit for your cause!

Expands Your Donor Base
By offering sought-after experiences, you can attract new donors who are looking for more interesting and engaging experiences. These items can also bring in higher-income bidders, increasing the overall funds raised.

Marketing Consignment Items
For marketing the fundraising events, consignment travel and experiences adds excitement and can differentiate your event from other events in your city that evening. Chances are that there will be multiple fundraising events in your city on the same evening, so you need to bring the “wow factor” to generate excitement and attendance to get to your fundraising goal.

Wondering how to generate excitement at your fundraiser or event? It’s not just in the items you’re auctioning, but also in the layout of your event. A table where guests can move about freely is the best layout especially to help attract people to bidding tables. When a group of people are having fun at the event, this will naturally generate a crowd around them which in turn could turn the item into a FUN bidding war.

Since our travel and experience packages are on consignment, there is no financial commitment! That means that you only buy the items from us after they are sold to a bidder, so there is no risk. Contact us to schedule a call and learn more.