The only way not-for-profits can build up their net assets is to make more money than they spend. Watch that bottom line!
Financial Management, Assets, Revenue, Expense, Financial Statements

“Data mine” to identify fundraising prospects within your organization’s database. RFM analysis stands for recency, frequency and monetary. Search your data for those who have given the most recently, the most frequently, and the most generously over the past year. Your top prospects are individuals who fall in the top 20% of all three categories.

Charities that are registered to charge HST normally charge it on the sale of tangible items — not services. But, if you’re selling a tangible item at cost or below cost, you are allowed to treat it as tax-exempt.

Think carefully before discounting your prices. Discounts may offer a way to respond to market pressures or to close a deal with a good customer. In some cases there may be  a norm; for instance, in the visual arts world, art consultants usually receive a discount. However, in many circumstances artists would do well to stick to their stated price. Don’t give up too easily!

Competition – and scarcity – can both be important determinants of a strong pricing strategy. Competition can be challenging, but it also creates a market: that’s why you’ll often see clusters of galleries or craftspeople in the same area. Scarcity, too, has pluses and minuses. Where you’re the only game in town, you may be able to charge a premium – or you may find yourself down on your luck when demand goes elsewhere.

When’s the right time to raise your prices? Common sense says that sales success points the way to the right answer for you. When you’ve been experiencing consistent success over the last 6-12 months, it may be time to look at an increase.

Your pricing should be consistent: all buyers pay the same rate. This is important, for instance, to visual artists selling multiples, or working with more than one dealer. Consistency can be hard to achieve when every piece is unique. Try thinking the way a real estate agent thinks: look at “comparables” as a way of adjusting for differences in neighbourhood and “curb appeal” — or artistic medium, style, size and reputation.

The price for your art needs to be responsive to your environment. The local economy exerts a strong influence: things just tend to cost more in some places than in others. When a downturn hits, everyone needs to think competitively to keep customers buying — and when good times return your prices can reflect the upturn.

The way you set prices for your work helps to define your position in the marketplace. That’s why Starbucks charges more than Coffee Time for that morning cup of joe. Think about pricing as a way to send a message to patrons about quality and values.

Is it time to review your pricing? Think of price-setting as an iterative process: you need to return to it repeatedly to make sure you’ve got it right. Analyse your costs from time to time, and look at what your competitors are charging. Ask trusted friends and colleagues for their feedback on proposed changes.