Donating a percentage of a sale to charity

[Lincs1]

Hi all,

I'm a new start business owner as a sole trader.

The business sells replacement windows and doors to landlords and residential home owners.

A lot of my business is from the immediate area that I'm located in and I have been considering a new approach with my marketing to increase this even further as the competition is very fierce. I want to stand out from my competitors with more of a unique selling point than the usual offers that are available from most replacement windows and doors businesses.

The product that my business sells is at a higher price point than that of my competitors already, as despite many peoples opinions, there is a huge difference in quality between the lower end price points and the higher. It's showing this to the customer to justify them not buying solely on price that is the challenge. So, by giving a percentage to a charity and not using that percentage as a discount will of course mean my products are no cheaper than that of my competitors. What I'm looking to discuss is if anybody here has used this type of marketing before in a targeted area and how successful it was compared to just giving a discount to lower the price. I'm really trying to gauge how the general public respond to this method from the experience of others. My thoughts were that by running this type of marketing then it would stand me in a strong position for a good press release in the papers and steer those skeptical of mind that all double glazing businesses turn over huge profits from their cons and are just out to make their fortunes before running off into the sunset. Just trying to create a better public image in a trade riddled with bad press. Of course, there is the charity to consider, it may be late in the day to say this now but of course the point is to benefit the chosen charity as well as my business. At the end of the day, I can't help anyone if I can't even pay to feed my own children, so of course this marketing approach needs to benefit my business as well as the charity.

The pitfall that I see is finding a charity that wishes to be associated with a replacement windows and doors business, but, assuming I do succeed in finding a charity who is happy for this and who is beneficial for the target area then am I missing any blatant areas of potential failing?

Many thanks for reading and if you do have any input please let me know

 

[GaryBennett(Telechief)]

I'm not sure if it will make much difference in your industry, but you should get some business.

If you do decide to do something then I suggest you choose a local hospice, closest to you. Then strongly market the fact your a local business, helping a local hospice, the two together will be the best way of doing this.

Good luck and if you need any help contacting businesses, landlords, estate agents , then give us a call.

Kind Regards,

Gary

 

[Lincs1]

Hi Gary,

Many thanks for your reply,

The chosen charity would absolutely be connected to the local target area, the need for a physical impact on the area was a priority but I'm willing to help any cause that needs assistance. Any association between my business and a charity will be long term as the more business I can generate then the more funds I can raise for the chosen charity.

I assume your line of business is focused in telesales, as such, if you are able to provide a telesales service or data supply then I'd be interested in speaking to you further to see if you can benefit my business. landlord data and contact is essential for my business, as is contact with estate agents that are involved with the local rental market, so if you feel you can offer a service then I'm more than willing to hear from you.

 

[Newbus]

This does create a commercial dilema.

Will you acheive greater sales as a result of this than you would acheive without it. You are stil ging to have to win the comecial / sales arguement and clearly demonstrate the products value to the customer, ensure they meet their needs and that the commercial terms are agreeable. Or are you just giving away profit unnecessarily thus reducing your margins and making it commercially less attractive.

I remember once on the apprentice that Sir Alan frounded upon this idea as a USP purelyon the ground it ends up giving away profit unnecesarily. On the whole I beleive that Sir Alan is right.

Alternatively, you could look to support a charity and create other ways that you can market this and build your brand locally. Create sponcered events, involve the community, act as a catalist to add value to local charitable events the PR it to death inthe local Press creating exposure for your brand FOC.

Good luck.

 

[GaryBennett(Telechief)]

Hi Lincs, It would be great to talk further about your full requirements for a telemarketing campaign. Estate/letting agents, etc is a good area to go with with.

We do offer our 'pilot campaigns' so you can get an idea of how well your campaign will run without any lengthy contract to pay for, there are no set-up fees and we will learn about your business and services in our own time so the hours you pay for are dedicated to your campaign.

If you do require data then we can provide it and can be very specific to your needs, we don't make any profit on this and get it at a reduced price, so you get the same discount we do.

If you could PM your contact details then we'd be happy to give you a call, alternatively you can contact us on 01832 270905.

I look forward to hearing from you.

Kind Regards,

Gary

 

[truesilver]

Hi

We recommend this kind of approach to a lot of our clients. It's good for establishing credibility and helps you get more involved in the local community (which is always good)

The biggest challenge will be quantifying the amount you're giving to charity. Many charities will let you use their logo on your headed paper if you show long term support.

As for which one to go with, I'd may be look at who your target market is - lukemia charities might be good if your best clients are families or may be something like Age UK (the merged charities of Age Concern and Help the Aged) if you want to go more for the security side of things.

Also, you may want to talk to your local Rotary as they will be involved in all of the local charities and can help you out...

If you want to have more of a chat, feel free to PM me.

Good luck and well done.

L

 

[Billmccallum]

Supporting a charity should be about helping the charity, not a marketing tool for the business.

see http://en.wikipedia.org/wiki/Corporate_social_responsibility

If you want to support a charity then do it, if you want to add to your marketing strategy do that, but don't lie to a charity by saying that you want to support them if all you want is more customers.

I have a great deal of experience in the charity sector, if you need advice, then feel free to PM.

 

[Lincs1]

Supporting a charity should be about helping the charity, not a marketing tool for the business.

see 'link could not be posted due to required post count'

If you want to support a charity then do it, if you want to add to your marketing strategy do that, but don't lie to a charity by saying that you want to support them if all you want is more customers.

I have a great deal of experience in the charity sector, if you need advice, then feel free to PM.

I completely disagree with your thinking in the bold highlighted section of your quote. But, very glad you mentioned it. It's the reason why I wanted to discuss with other businesses if they had used this strategy before and what the reaction was from the market that they are in. Of course, if the opinion you have given is the same thinking as the majority of my customer base then it will be a counter productive and potentially damaging route to go down, it doesn't matter how constructively or thorough I try to explain what's really happening, if the end user has the same opinion then I can disagree all I like as it will not make a difference.

Donating a percentage of the sale to charity is of course a marketing tactic aimed at increasing sales for my business. Is it at the expense of the chosen charity by using a lie?, no not all. It's in partnership with the chosen charity.
My business is my only source of income, so as my bread and butter it pays for the living costs of my family. Once those costs are covered, further amounts of profit are put back into the business to develop and grow further to create larger profits. In full cycle, family living costs are paid from it and then the excess put back to continue. You see, if I don't make a profit from the business, my only source of income, how am I possibly expected to give money to charities? The more sales I can generate then the more I can give to the chosen charity. There are no bad morals involved in this at all.

As mentioned previously though, if the majority of my customer base also fail to understand this then it's not an avenue worth expanding on. I'll research further through other sources too to see how widespread this misinformed opinion is.

 

[truesilver]

To back up your statement Lincs1, donating to a charity not only helps the charity in a monetary way, it also helps them 'spread the word' to people they may not reach if you're including their logo on your marketing materials. I believe the phrase is 'win - win'?

L

 

[captaincloser]

Lincs1 you are using a lot of ink here to justify your plan to charge your customers for your charity giving. You are way off track.
Bill Maccallem makes a good point above and I agree....

Most of us (that would be the 'general public' you refer to) are reasonably bright and see right through companies that charge us more and tell us 50p/10% (whatever) of what we pay goes to charidee. It's insulting our intelligence and I ,for one, never deal with any company that uses such lines in their ads. Its oily stuff.

What a company does with their profit AFTER I and others have paid them is up to them. Take it home ? Take a holiday ? Buy a Ferrari or give some to charity..that is everyone's prerogative and most of us in business give to charity (is my guess).

But to use the 'charidee' line as some sort of altruistic stepping off point to differentiate your marketing from your competitors..sucks...plus it sure does differentiate you. To debate on here about the merits of the local hospice being best to have in your marketing mix is bad taste .

The fact is that if we (Jo Public) want to give to charity we will and it will be a charity of our choice and an amount we want to pay. Most of us are seriously not interested in a charidee middleman when we are making a business purchase.Likewise as the business owner..give when you do your annual figures ..don't give with an up-front surcharge on your potential clients.So uncool as to be laughable.

You are almost certainly going to run with this marketing ruse so the above is wasted but you asked for opinion?

Putting your hand in my pocket to make yourself look good with the charity and with me ?

Your justification posts on here are ,at best, misguided, at worst exploitative of your business and your clients.

 

[Lincs1]

Lincs1 you are using a lot of ink here to justify your plan to charge your customers for your charity giving. You are way off track.
Bill Maccallem makes a good point above and I agree....

Most of us (that would be the 'general public' you refer to) are reasonably bright and see right through companies that charge us more and tell us 50p/10% (whatever) of what we pay goes to charidee. It's insulting our intelligence and I ,for one, never deal with any company that uses such lines in their ads. Its oily stuff.

What a company does with their profit AFTER I and others have paid them is up to them. Take it home ? Take a holiday ? Buy a Ferrari or give some to charity..that is everyone's prerogative and most of us in business give to charity (is my guess).

But to use the 'charidee' line as some sort of altruistic stepping off point to differentiate your marketing from your competitors..sucks...plus it sure does differentiate you. To debate on here about the merits of the local hospice being best to have in your marketing mix is bad taste .

The fact is that if we (Jo Public) want to give to charity we will and it will be a charity of our choice and an amount we want to pay. Most of us are seriously not interested in a charidee middleman when we are making a business purchase.Likewise as the business owner..give when you do your annual figures ..don't give with an up-front surcharge on your potential clients.So uncool as to be laughable.

You are almost certainly going to run with this marketing ruse so the above is wasted but you asked for opinion?

Putting your hand in my pocket to make yourself look good with the charity and with me ?

Your justification posts on here are ,at best, misguided, at worst exploitative of your business and your clients.

Hello Captaincloser,

Many thanks for your post, very grateful to hear your opinion and extremely well put, exactly the opposite side of the coin that I was looking for. All but until you let your emotions take over towards the end, however, it's clearly a subject that evokes passion from you and I would assume you felt maybe insulted by the idea of my business donating a percentage of the my sales to a local charity.

'You are almost certainly going to run with this marketing ruse so the above is wasted but you asked for opinion?'

I feel this comment is extremely unfair and in many ways a double edge sword. I understand your displeasure at the idea and I most certainly welcome your opinion and feel it is extremely valid. I feel it is valid because it is what I asked for. I have stated in my previous posts;

'am I missing any blatant areas of potential failing?'

'It's the reason why I wanted to discuss with other businesses if they had used this strategy before and what the reaction was from the market that they are in'

'if the opinion you have given is the same thinking as the majority of my customer base then it will be a counter productive and potentially damaging route to go down'

I can not find anywhere in my posts an area that gives indication that I am going to run this idea regardless of the opinions given? by making your statement you are applying your personal displeasure, which is not a problem to me and taken note of, but also you are discouraging others from also giving their opinions by suggesting to the readers that any input is wasted on me, which is extremely unfair.

I did say I disagreed with the opinion given in a previous post. I said this in relation to disagreeing with the assumption of my intentions, not disagreement that the opinion was valid or not. By disagreeing with peoples assumptions and explaining what is really happening I tried to see if any opinions could be given from different angles. If readers still can not see the thinking from me behind what I am proposing to do, then again, that is not a problem to me as it gives me an idea of what the consumers perception may be. I did ask and was looking more for business owners who have used this marketing and charity helping venture before, but none the less, I am still keen to hear opinions from consumers themselves.

I am not offended by your post, I see it as very informative and useful to me.

Many thanks again

 

[Chris Ashdown]

I never allow side issues to affect my buying any items regardless of price

If I want to give to charity I do it myself because I want to help that charity

I am not affected by ethnic or PC or fair trade arguments as mainly they are a load of crap, If for instance I was buying all my products from one part of a country and wanted to protect myself for the future, I would invest in that area in the hope to gain favor. The whole world trade helps some countries and stops help to others

So in your case I would consider it a marketing ploy and regardless of cost ignore you and go to someone who offers simply the best terms for the best price i can afford

 

[Lincs1]

Brilliant Chris, thank you, very much appreciated.

Ok, so just to help me close things up as I don't think at this point I'm going to hear from a business representative who has given sale value to charities, most likely due to the explanation of thoughts given by others.

If your children went to the local school in your area and the product you were looking to purchase were available from 3 businesses/companies who were also in the local area, all offering the same price of £1000, but one was giving 10% of the sale to the local school where your children attend yet the other two were keeping that 10% for their own pockets, would there be no desire or interest to consider the charity supporter as more appealing than the others?

I've already stirred up some passion and anger over the subject and this is my closing question that will help to sum up the perception for me. I know the example given is not the same as my opening post as I've already stated that my product is at a higher price point than that of my competitors, but using the given example would be helpful.

I really do appreciate all the opinions so far and its creating some great feed back for me, so if this does create more negative reaction then that's a positive for me as it helps to clarify the stand point of varied consumers on the subject, be it a small selection but I do recognise that a view point shared by one will almost certainly be shared by many others.

 

[Chris Ashdown]

So your making the same offer as the supermarkets, let me in and I will build xxx for the local people, if you phrase it one way it's acceptable if your very clever, if you do it another way its bribary and a criminal offence, me I cannot see the difference but there must be as they get away with it

 

[Vending Siting Services]

I personally see no problem with having a contribution of your takings going to charity, we have done this for nearly 20 years and we have raised well in excess of one million pounds. A little and often soon mounts up. As a company we don't have to donate, we choose to donate and we are very proud of our achievements.

If you would like to pm me, please do so and I can give you a few pointers with regards Charities Commisioners and also Trading Standards. You will need to get the legalities right.

Kind regards.

Barbara Fellowes

 

[captaincloser]

I personally see no problem with having a contribution of your takings going to charity, we have done this for nearly 20 years and we have raised well in excess of one million pounds. A little and often soon mounts up. As a company we don't have to donate, we choose to donate and we are very proud of our achievements.

If you would like to pm me, please do so and I can give you a few pointers with regards Charities Commisioners and also Trading Standards. You will need to get the legalities right.

Kind regards.

Barbara Fellowes

What part of this thread refers to a problem with contributions from takings going to charity ? Nobody, of course, can argue with what you say about your company and charity donations...but why are you saying it ?

 

[GetSetPet]

I stumbled across this thread today having read it I would love to hear some opinions on my set up. I run a animal rehoming website posting homeless animals for around 200 different rescue centres throughout the UK. About 10 months ago we set up an online pet shop with the sole purpose of raising funds and awareness for a variety of rescue organisations that had a specific plight. We actually donate ALL net profits made to the current nominated charity.

Many of you stated that this kind of thing would never influence your purchasing persuasions. Is this really the case? Or is something like 10% not significant enough to tip you. Obviously our set up is very different from a window business although we do run the site as a business and generate minimal advertising revenue from our pet services directory to fund the work we do.

We are finding it very hard to make regular sales or convert our existing traffic (around 1000 uniques per day) Although the customers we do have mostly return. :|Any advice would be most welcome