How to set up your budget for selecting prizes.
PRIZE SELECTION AND BUDGET GUIDELINES
Figuring out how much to spend on each item can often be challenging when several have to picked out for the same occasion. Here are some helpful hints: The psychology of prize giving is that most people judge the importance of awards most often by size and/or "brightness". "Bigger", "Shinier" is more important than smaller, duller, even though the costs might be the same. Another perception is by metal color, For example, Gold, silver, bronze for 1st, 2nd, 3rd, or silver, pewter, copper. Glass, wood, plastic go primarily by size. BUDGETING If it’s a one day or one time event, its pretty easy¼as long as it is remembered to include ALL costs in the budget such as personalization (engraving) and sales taxes, which are often forgotten. Here's some simple budget guidelines if there are only 3-5 prizes that need to be selected:
3 Prizes 4 prizes 5 prizes
1st 38% of budget 1st 33% 1st 30%
2nd 34% 2nd 27% 2nd 25%
3rd 28% 3rd 22% 3rd 20%
4th 17% 4th 15%
If the selection process requires multiple prizes with some events more important than others, use a "stair case" approach to figure out the budget. Start with the "least valued" event and stack the number of places to be awarded from 1st thru "?" (usually 3rd.) Then go to the next in line valued event and stack the number of places to be awarded but make the 1st place prize one level higher than the previous event. While doing this, note how many are needed for each place. See the example : (2) 1st
(3) 1st (3) 2nd
(1) 1st (4) 2nd (6) 3rd
(1) 2nd (5) 3rd
"A event" "B event" "C event"
Once all the events are stepped out, it shows the exact number of prizes that will be required as well as showing how many "levels" of differences in prizes that will be needed. Now all that is required is to construct a table that shows the number of prizes for each level from highest to least and then put some trial dollar figures with each level and then multiply and add to see if this is high or low of the overall budget. For example:
# of prizes Avg. cost Total cost
2 $45@ $90
6 $40@ $240
11 $35@ $385
6 $30@ $180
1 $25@ $25
Total Prize Budget $920
HINT: It usually takes from $5-$10 on an item to make significant visual "differences" in what can be selected so adjust the scale as needed for your event /events.
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