Price points for Raffle tickets

[Lordstan]

It is an interesting question, but there is another part that factors in.
I think the answer to your question is definitely yes, more tickets would be sold, but would the amount of money raised be enough to allow Graig to do the painting? This raffle is a way for someone interested in getting a painting from Graig get one for much less than the usual commission rate, but it is not a charity raffle like St Jude's or a mega-dream raffle like the powerball. Both of those raffles will proceed forward regardless of how many people buy tickets. If we don't reach 250 tickets @$20 per($5K), then there is no raffle. At $2 per chance, that would mean we would need to sell 2500 chances.
I am sure that more tickets would sell, but am not sure if it would reach that threshold.

[frankbmd]

Originally Posted by Lordstan

It is an interesting question, but there is another part that factors in.
I think the answer to your question is definitely yes, more tickets would be sold, but would the amount of money raised be enough to allow Graig to do the painting? This raffle is a way for someone interested in getting a painting from Graig get one for much less than the usual commission rate, but it is not a charity raffle like St Jude's or a mega-dream raffle like the powerball. Both of those raffles will proceed forward regardless of how many people buy tickets. If we don't reach 250 tickets @$20 per($5K), then there is no raffle. At $2 per chance, that would mean we would need to sell 2500 chances.
I am sure that more tickets would sell, but am not sure if it would reach that threshold.

My question actually is based on the fact that the $20 and up pool might be affected less negatively than what would be gained by a reduced ticket price, that would add attract people who value their $20 bills.

I'm quite sure that a million dollars worth of Powerball tickets are sold long before 10,000 Dream House tickets. The same goal is reached faster with the cheaper ticket in this example. The only way to know for sure would be try it, as I suggested (hi billy).

[Lordstan]

I understand.
So the theory goes..
1) People who spent $100 in tickets will still spend $100, or $80, etc.
2) People who don't want to spend $20 might spend $2 or $5
Therefore more people buying tickets results in more money raised.

Interesting. The only downside, which you mentioned would be if those who spent $100, now only spent $80.

[LEHR]

I've thought about this in the past and I'm in the camp that more chances would be sold at a lower price point. I think that even dropping the price to $10 a chance with a minimum of 500 sold ($5k) would get more people off the fence and to take a chance. But I could be totally wrong about my assumption. Speaking for myself; I bought 6 for $120 because that's where I felt comfortable and I'd have spent the same amount on this raffle regardless of the price being $20, $10, $5 or $2.

Just my two cents.

[Basebill]

I think the big detriment to having the raffle be only $1 or $2 is the more work it entails for the organizers. It's easier to keep track of 250 $20 entries being paid than 4000 $1 entries being paid. Just thinking about double checking a list of 4000 for payments received makes me shudder. Plus, since Graig is being paid through services like PayPal, having a huge influx of $1 payments hitting his account might send up red flags in their system. Just my $0.02.

[billyb]

Frank,
We have thought about the lower pricing of these entries, and would love to reduce the price, to make it easier, for someone to afford a $5 or $10 entry. But besides the much longer list and more payment collections we would have to endure, I certainly would not mind the extra work.
But the lower cost of each entry, devalues each entry(naturally), and each participant would only get the one entry number, compared to the three or four they will get now.
And remember, we base our winning number from an attendance figure, using the last three numbers. If we go down to $10 per entry, we would need 500 entries to reach Graig's consignment fees. One number past 500, and each entry would only get one number. If we go down to a $5 entry, we would need to sell all 1000 entries, and there would be no room for the possibility of obtaining enough money to offer an even larger painting, if money so dictates.
Even at $10 per, once we reach that 5K mark, (500 entries), then all entries go down to only one entry number per purchase.
The $20 gives us the room for that step increase, and gives purchaser better odds.
I hope this explains our decision to keep the cost at $20.