Well as far as getting physical prizes, the problem is that I'd be handling the cost and shipping of it, as this whole contest structure is a user idea as opposed to a site or moderator idea, so there is no help with money. I just figured in case it got big I'd offer a prize that was unique.
BUT, perhaps if it ends up getting big and maybe even adopted by the site, real prizes can happen, as opposed to just bells :3
Thanks for your ideas though! also, feel free to PM me your stuff, and I'll mess with them at work in my spare time!
Whenever I used to hold contests, I would give out prizes through Nintendo of America or Steam. I also have some xbox live 3 month codes that could be given as prizes.