Services and Non Profits Vol. 4

Okay. Welcome back to Volume four.

This should weigh should finish off this Siris on this

volume, but yeah, So I was talking about how do

you decide what prices to charge for a nonprofit, Right?

What we said earlier was we're not interested in making

a profit.

We're not interested in, um, you know, driving up the

stock price, we're not interested in radar.

Rate of return.

We're not worried about market share is much.

So how do you decide what price to charge?

Right. And a lot of nonprofits try to charge the

least amount possible to keep the doors open and to

keep their company running right.

And then it also is gonna depend on, like, this

is actually really hot topic right now with nonprofits is

trying to figure out like, well, how much of our

how much of our operating budgets going to come from

donations versus money that we charge.

So let's say, for example, you're a food bank and

you don't charge the customer anything.

Then you're gonna need a lot in donations, right?

Um but there but maybe somebody like goodwill.

My, you know, they're charging you a price is just

much much discounted on the products that you buy a

goodwill. So they cover some of their costs with the

price, and then then they may be covered.

The rest with grant government grants and donations and such

like that.

The reason I say it's a hot button topic is

when you donate your money to a nonprofit.

When you donate money to a nonprofit, a lot of

people want more transparency.

They want to know like, Well, if I if, for

every dollar that I that I donate, how much of

it is going directly to the people that I'm trying

to support eso Red Cross is like the biggest example

of this.

So, like let's say there's a hurricane and you want

to support the people that are struggling in the hurricane.

You donate to Red Cross.

Oh, and then a couple years ago was being the

research was showing that, like 80 cents out of every

dollar was going to just like money to pay for

salaries and and and just basically running Red Cross so

that that kind of ticks, um, people off right when

they found out only 20 cents out of every dollar

was actually going to the hurricane victims.

And so e think now all of the non profits

are required to show, like what percentage goes directly to

the Thean user And so But there are some accounting

tricks. I've heard that companies can play to make it

look better or worse, but that's just it's something interesting

to think about.

If you are gonna donate, you may want to take

a look at that before you do it.

Um and then So the last thing that nonprofits also

need to take a look at is communicating their availability

right? They're gonna have to create some brochures and signs

and public service announcement advertisements, just like regular companies do

to try to explain to their target market what it

is they offer, right?

And so that's always an interesting one, because they don't

They're not gonna have the same kind of marketing budget

as a big corporation, but they need to try toe.

Um, it's the same type of deal they need toe

create a message that works, and they need to create

it in a form networks like it doesn't make a

lot of sense to serve the homeless population and then

run a bunch of TV ads if they're not able

to watch TV that often, right?

So in that case, brochures or signs might work a

lot better.

Okay, so how did the marketing goals and objectives differ

for a non profit?

So instead of focusing on making as much profit as

possible, the focuses instead on generating enough money to cover

your expenses.

Right? A nonprofit means zero leftover money after you've charged

after you've charged all the dollars.

Um, you don't you don't bring home a profit.

You don't give money to the owners.

It's basically you raise enough money and you generate enough

money through through the service is that you provide to

offset all your costs.

Okay. And the costs are salary.

Um, it's buildings.

It's the materials that you're giving away.

Um, all that stuff, that's and so So that's different,

right? That's different than making trying to just market to

make this much money as possible, grow your market as

much as possible.

Um, one of the other goals is to show that

you provide equitable, effective, efficient service is that respond to

the wants and preferences of a whole lot of different

people are You gotta make yourself seem valuable and seem

like something that is been a benefit.

Okay, Companies don't necessarily have to do that right there

trying toe add value.

But a non profits value statement is more like, Hey,

this is a service we provide.

And this is why we need tohave it.

And this is why you should donate what's tough about

the goals and objectives of a nonprofit those You can't

just measure success based on how much money it generated,

right? Because that Z, if you're working for a marketing

department of a corporation, you're gonna put together a marketing

plan and a promotion plan and you're gonna say, OK,

we hope that it generates this much extra money in

terms of a nonprofit.

It's not about the money, right?

You can't just say, Oh, are our revenues went way

up after we did this marketing campaign.

Well, that's not the most important thing.

So it makes it difficult then to say like, Well,

what do we want out of it, right?

How do we evaluate the performance of a marketing campaign?

Is it Mork?

Customers come in?

Is it more donations or given?

Is it What is it, right?

Like what?

What is the litmus test to saying whether or not

the marketing campaign when the goals were achieved or not?

So let's talk about the target market, then of of

a nonprofit.

It's different as well.

So one of the toughest things is that, Ah, lot

of times you're marketing your your service, your or your

organization to people who are apathetic or like even strongly

opposed to receiving the service is, um, the example I

have here in that photo would be like a food

bank. I've heard some like, really emotional, touching stories of

like Back on.

I'm sure it's happening again with the current economic downturn,

but I talked to some people at the food bank,

Um, here in the Tri Cities, we're talking about the

2000 and 8 2009 financial crisis, and it was just

this really profound story of a lady showing up in

her. Um, I think it was a Lexus SUV, and

she basically came every day and parked and never got

out of her car and then left because she really

was against taking this handout.

And in what turns out later to make a long

story short.

It turns out that like she had lost, she was

a realtor and the housing market had tanked and she

lost all of her income and she couldn't afford groceries.

And it was really hard for her to swallow her

pride and go take a service that she really was

kind of, you know, didn't want to take.

So how do you target a group of people who

don't necessarily want to have to use it?

Right? So that's a trick.

That's that's a tricky one.

Um, the other thing is, what's unique about this situation

is that you You, um what's unique about nonprofits, I

guess, is what what I was going to say is

that they often times take a very undifferentiated approach, right?

They use that shotgun method where it's just like, let's

just throw out a message to everybody because they really

they think because they have a limited marketing budget, they

have to just, like, come up with one message that

reaches as many people as possible.

And so and they're trying not to be exclusion exclusionary.

So they might.

They might be pressured to not do target marketing.

Okay, And because of that, maybe they're losing out on

on helping Cem.

Cem Important markets, I think, um, last but not least,

um they have to identify and provide.

Service is toe underserved markets, which are not necessarily the

most profitable markets right there.

Like they might not even help you, like in the

long term, As much as some specific target niche that

you might, you might say.

Okay, we should, if we really want to survive, we

should target this group, this group in this group, and

then you say, Well, yeah, but this is the underserved

group over here, and that's what our goal really is.

Okay. And that's kind of goes against profit for profit

companies, right?

So it's a lot different.

And so when you're marketing your company, you're trying to

figure out a target in a nonprofit, you're not necessarily

looking at that group that's gonna get you to the

end or keep your company afloat for years to come.

You're looking at who needs it the most, and so

that's very different mentality S O.

That makes marketing a little tricky.

Okay, so that wraps everything up for this lecture.

Siri's. We talked about marketing service is and marketing nonprofits

on dhe next week.

I believe we get into the next P of marketing.

I believe we're gonna take a look at place and

distribution. So if you guys enjoyed this week and we'll

Services and Non Profits Vol. 4

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