Tuesday, April 20, 2010

Pricing

The strategy for pricing for the AAVC is a little complicated because we are seeking donations from local companies that are interested in sponsoring cycling activities in Ann Arbor. At this point we have organized our pricing scheme by defining different levels of donors and specifying what donors can expect from the AAVC at each donation level. Below is an initial draft of what we are thinking:

Sponsorship Levels

Presenting Sponsor ($5000 cash or equivalent in-kind donation, only one per team or event)
• Logo or brand displayed prominently on club jersey (center front and back and on leg panels of shorts).
• Logo presented on AAVC website, brochures and race announcements.
• Team members available to sponsors for use in advertising or promotional materials and events.

Premier Sponsor ($3000 cash or equivalent in-kind donation)
• Logo or brand displayed prominently on club jersey (jersey front and back, or jersey sides).
• Logo presented on AAVC website, brochures and race announcements.

Supporting Sponsor ($1000 cash or equivalent in-kind donation)
• Logo or brand displayed prominently on club jersey (upper chest, upper back, or sleeves).
• Logo presented on AAVC website, brochures and race announcements.

Associate Sponsor ($500 cash or equivalent in-kind donation)
• Logo or brand displayed prominently on club jersey (rear pockets)
• Logo presented on AAVC website, brochures and race announcements.
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5 comments:

  1. Marketing614_pacarApril 22, 2010 at 6:40 PM

    I like the fact that you classified the donations into different levels for trial pricing. However, don't you think that $500 dollars is too much? Maybe you could reduce your price for trial pricing purpose.

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  2. SuzyApril 22, 2010 at 7:09 PM

    Are there any benefits for individual donors (not businesses)? What do they gain from donating to your organization?

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  3. SuzyApril 22, 2010 at 7:11 PM

    By the way, reading your blog has really helped me with my marketing plan, so Thank you!!

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  4. DaveApril 23, 2010 at 5:03 AM

    @Pinar: While we the AAVC is certainly willing to accept donations of less than $500, we cannot realistically give much back to such donors in terms of visibility on our highest impact medium (our race team uniforms) without detracting from our larger donors. I like the idea of trying to get smaller donors, maybe we could just offer these people a link on our website or something along those lines.

    @Suzy: The primary benefit that an individual might gain from donating to my organization is a bit harder to define. My guess is that they would really only get a psychological benefit from donating to a cause they care about. What we offer businesses is a chance to gain some visibility and recognition to a generally wealthy and loyal audience (cyclists). So it's a bit of a challenge for me to translate this benefit in terms of an individual. One of the confounding factors here is that most of the businesses that donate to us do so because one of the owners or partners is heart-loyal to either cycling or AAVC, so they view the visibility and recognition as bonus benefits rather than primary benefits. What I'm hoping to be able to do is recruit more head-loyal donors that really want to explore using the AAVC as a means of marketing themselves to local cyclists. I'm glad you've found my blog helpful, thanks for your comments and feedback!

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  5. SherwinApril 25, 2010 at 8:53 PM

    This idea definitely just helped me with my pricing strategy, and the whole idea of going after sponsors. I'm similarly seeking donations, and was completely community focused (on an individual level). But I think the concept can reach beyond. Thanks for that. And good luck to you!

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