Starting Bid and Bid increments Ideal for donations. Choosing the right auction software will prevent the problems that occur with using paper bid sheets, like indecipherable handwriting, invalid bids, or bid sheets that are missing altogether. It's not heresy. At the end of the day, heres what you need to remember about setting starting bids for any item at your silent auction: Finally, feel free to contact us if you have any other questions about setting up your silent auction. The reserve is the minimum bid your auction item must reach before you transfer ownership to a bidder. Your souvenirs? Maybe you arent sure how to set fair starting bids for your items, or perhaps youre curious about bid increments. You can update the Max Bid Percentage by navigating to Auction Items & Catalog > Auction Types, . In these situations, a bit of research and some educated guessing is required. Silent Auctions 101 - BiddingOwl Our years of data crunching have shown us that the bid increment is actually a bigger influence on overall auction performance. You can build the best silent auction on the planet, but if you dont market it correctly, chances are that you wont have very many people bidding on your auction items. If you are going to base your starting bids off of fair-market-value, keep in mind that FMV can often be subjective. This group sets up the event, manages the floor, answers attendees questions, and enforces your newly created silent auction rules. Similarly, a pair of Beats headphones will retail for $300, making that the FMV. So a $500 spa day would have bid increments of $50, and a $2,000 vacation package should have bid increments less than $200. The latest news, updates, and awardshot off the press. From minor tweaks to the login screen. Setting starting bids for items is a common source of confusionmany first-time silent auction hosts (and even a few experienced event planners) need help to do it properly. The most common basis for setting these bidding rules is "Fair Market Value (FMV). If bidders are highly connected to the cause and the silent auction items offered are within their price range, they often bid more than the fair market value. Setting Proper Expectations of a Revenue Goal for Your Silent Auction Here at Winspire, it's our privilege to offer free fundraising event consultation to any nonprofit! Once they are in a bidding war - their logic seems to fall by the wayside and emotions take over.. So where can you find these volunteers? FMVs, on the other hand, are vital for calculating starting bids on most items. info@qgiv.com. We use cookies to ensure that we give you the best experience on our website. With a less popular or less unique item, the lower range of 30% is recommended. Every fundraiser and every cause needs the inside scoop to getting the most from your next auction! A percentage of an items fair market value is often recommended, however, recommendations can range from 30% to 50%. You'll find inspiration at every turn. In these cases, you have to make an educated guess as to what you think your audience is going to be willing to paynot what you are willing to pay. After you receive an item, research its value instead of just taking your sponsor at their word. Utilize mobile bidding software so bidders can browse through your auction item listings on their phones and then instantly place their bids. Ensure your silent auction items yield the maximum profit by including: SILENT AUCTION TIP: When choosing a starting bid, industry experts suggest using 40-50% of the Fair Market Value (FMV). Here are just a couple of reasons why youll need their information before the event is completely over: For an online auction, youll need to deliver auction items as promptly as possible. The time commitment alone makes silent auctions a high investment fundraising event, and how well you research, organize and reach out to potential bidders will determine how high your return on investment will be. All the bells and whistles for a fully loaded online auction. GalaBids online fundraising platform is designed for fundraisers of all types and sizes. Examples include dinner with the Mayor or the opportunity to be grand marshals at the next community parade. What Is A Silent Auction Event? - Nonprofit Glossary - Kindful Be reasonable and fair when pricing your items, and don't be afraid to set the starting bid on the low side of the spectrum. setting starting bids and bid increments., Online and Silent Auction Software: Top Providers Reviewed, Top Silent Auction Rules for Your Nonprofit's Next Event, Charity Auction Sites: 8+ Best Software Providers Reviewed. Still, you dont want to make your starting bids so low that people undervalue your items. The item procurement process will depend on the number of sponsors you reach out to, but a few universal steps are: For the most part, you will have better luck engaging with sponsors whose business aligns with your nonprofits interests, and who have supported similar events in the past. If you have an item that is worth $2,000, don't simply set a bid increment of $200. Virtual or hybrid events also require setup, but not in the same way as in-person events. Once this happens individual's' emotions take the driver seat and their logic hops in the back seat. You may need to occasionally purchase auction items at a discounted price to fill out your auction offerings. When it comes to auctions, knowing the FMV of an item helps you calculate the starting bid and bid increments, so its important to get the most accurate value before you start pricing items. Consignment items come with a base price for the Nonprofit, which is the cost for your organization to sell the package. This is because once people get engaged in bidding on an item, they're likely to get emotionally attached to it, which can cause themselves to bid higher.. And you thought all you needed to do was simply gather enough item donations! Because let's be honest, few people are willing to leave their table or conversation to increase their bid by a few dollars. But with mobile bidding, the cost for a bidder to place a higher bid is much less (they can do it with a few swipes and taps) and don't have to walk anywhere. One strategy is to separate the charityauction items by value and uniqueness. Instead of rolling the dice, check out how Handbid's mobile bidding software can help your silent auction succeed. So our $700 item can start at $300. The logic here is that once invested in the bidding process, donors who are attracted to the lower price become emotionally attached to the item and are then willing to spend more money as the process continues. Here is what we suggest - you keep your bid increments AS LOW AS POSSIBLE. Unfortunately, pricing silent auction items isnt glamorous. hbspt.cta._relativeUrls=true;hbspt.cta.load(297253, '30b75717-a932-4b13-bb55-8fc2c1d62608', {"useNewLoader":"true","region":"na1"}); Subscribe & Enter to win $1,000 in donated auction items for your next fundraiser! Explore these additional resources to raise more and reach more. Times have changed, and now mobile auction software has changed the game, allowing guests to browse items and make bids on their smartphones.. Your destination for insight into the world of event fundraising and charity auctions. The starting bid in a silent auction represents the minimum amount that participants can bid on an item. You control the rate at which the bid of each item moves up. Don't just take a donor's word on the value of an item. This will help you to consolidate all of your guest information in one place, allowing for easy check-in and bidder registration on the night of your event. 13 Silent Auction Strategies: The Ultimate Guide for Nonprofits - OneCause A well-run silent auction takes a dedicated team and months of planning to execute, but the right tools can help ease the process and ensure the event runs smoothly. To achieve this, your incremental bids should be as low as possible to encourage guests to continue bidding.. Try to only purchase items you can get for well below the fair market value. These items can survive with a higher starting bid, so 40-50% of FMV is ideal here. Make bidding better for you and your guests by setting a bid increment thats low enough to attract bids but high enough to get you to 70% of the items value in as few bids as possible. This is important for the nonprofit industry because raffles and auctions rely on donors to value the price of items. How to Run an Online Silent Auction at a Golf Tournament Fundraiser, The Team at Bid Beacon Attended GO WEST 23. See what people can buy a similar item for online. Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system. How to Plan a Silent Auction: Updated Guide - OneCause With auctions, bidders are looking for a deal. Let's say a restaurant donates a $50 gift certificate. Whats New? Many people mistakenly assume that a starting bid is the same as a minimum bid but that isnt true. This one is related to setting starting bids and silent auction bid increments. If we use a ratio of the minimum bid at 40% of FMV and increment at 20% of the minimum bid, we would have a starting bid of $400 and a bid increment of $80. The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Again, our expected selling price is 70% of FMV. Participants will register, make bids, and pay for items all through the auction site. Even if guests want to pay by check or cash at the end of the night (most dont), the checkout lines will be much shorter because of the option to put a credit card on file at the beginning of the evening. If you create enough traction on the item, it may well go for more than the FMV. One such activity is setting bid increments. Alert all registered bidders as the final hours of the auction approach to increase a sense of urgency and encourage final high bids. It can be helpful to gather your guests information before the event even begins by creating an event registration page. A percentage of an item's fair market value is often recommended, however, recommendations can range from 30% to 50%. Simple . at your next charity auction while earning plenty of profit for your cause. Heres 6 rules to keep in mind when pricing your items: Fair market value (FMV) is a concept that can be applied to put a monetary value to the item that a buyer and seller agree upon as representing the worth of an item. . The difference between a minimum bid and a starting bid Green Means Go For Your Silent Auction - Greater Giving Blog For example, if your guests are mostly retirees who love wine, you dont want an auction that is full of items like tickets to the childrens museum. For static content, just drop it into any page and begin editing. In this process you would lower the starting bid of the item(s) by a % and then set a buyNowPrice at the same amount as the starting bid. . This is especially effective for mobile bidding, where guests wont even need to leave their tables to continue chipping in their bids. Doing so will help you determine what other people are willing to pay for your items under fair and clear circumstances. Bidders will appreciate it since they really only get to claim deductions on their purchase amount, which ultimately, might be less than FMV. Youll need to set a starting price closer to what you purchased the item for to ensure you break even. Minimum bid, also called "reserve price": The price at which an item can be sold. Keep in mind that a high starting price can discourage bidders from participating, so it's typically better to err on the side of caution and go with a lower starting bid. After a quick google search, we found the same ball for $75 at multiple locations. It's also essential to put bid increments on the bid sheets. So be cautious when basing your starting bids using it. Be aware, if your fair-market-value is inflated, your item's entry point may be too steep for bidders. if you have any other questions about setting up your silent auction. To best strategize the pricing for your silent auction and bidding increments, consider these topics: If there is a healthy ratio between guests and silent auction items, there should be a solid number of bids on each item in your silent auction. Setting your starting bid amount is key to attracting bids and making money on your auction items. By saving the best for last youll dramatically increase competition among bidders and revenue for your organization. Bidding will begin and end at designated times State when the auction will begin and end, regardless if you're hosting an in-person, hybrid, or online auction. Set your auction time frame. Canadas Event for Event Professionals, GO WEST, held their 3-day conference in Edmonton, AB this year, and our team had the honor to attend as exhibitors! Setting Starting Bids and Bid Increments in your Silent Auction All Rights Reserved. Here are some helpful tactics to promote your auction event: Whichever promotional channels you use, consider your audience once again. From the perspective of the bidder, its also a great option for people that dont want to waste their time bidding and are willing to pay top dollar for a specific item. It is ok! Find similar items and compare prices across websites and in stores if possible. Ditch the bid sheets. Silent Auction Pricing: The Ultimate How-To Guide - SchoolAuction.net However, these numbers are important reference points youll need to find the ideal starting bid for each item. In a silent auction, items are displayed to the attendees and each item has a bid sheet. Using a set formula to determine the Opening Bid and the subsequent increments on silent items is fine for most items. If you are having an event, that warm-up time often includes a trip to the bar, catching up with friends, and browsing the auction. When we see fewer than expected bids on an item, the most common mistake is that the starting price was too high. Your registration process will be one of your events first impressions to your guests, so make it count! Starting bids (also called opening bids) are the amounts you set to start the bidding. The first exception: purchased items. Send thank you cards and include pictures of the event, and show them how their support made an impact. Were a passionate team of tech creators, customer enthusiasts, marketers, designers, and data fanatics. Planning a silent auctionrequires careful and strategic thought. After item procurement, pricing your silent auction items can be your next biggest challenge. The general recommendation is to start by increasing bids by 10% of the items FMV. Many silent auction bid sheets have been tried and seeing so many I feel I have developed the best silent auction bid sheet with all the most effective practices available. We keep a close eye on what our clients are saying about their experiences with us, but dont take our word for it see for yourself! Set a Minimum Bid at 30-50% of an Auction's FMV Set a Higher Minimum Bid for Unique Auction Items Start by Increasing Bids by 10% of the Item's FMV Offer a "Buy-It-Now" Option at 150% of the Item's FMV Let's get started! Once youve set the starting bids for your items, youll need to pay some attention to setting bid increments as well. Silent Auction Best Practices & Ideas For Your Silent Auction If their item was a big hit, let them know. Auctioneers will joke that it doesn't matter where . Reserve prices arent for every auction item. So, where should youset yourstarting bid and bid increments? 6 Essential Silent Auction Rules: Host Your Best Auction Yet - OneCause It can be hard to evaluate the worth of high value or one-of-a-kind items. Ask your item donors to supply an FMV or check their website. Just double-click and easily create content. Never fear, use this blog as a resource to ease your pricing worries. Typically, increments are set at 10% of the fair market value. Pro tip: We had a donor once tell us that a baseball signed by some "random MLB player was worth $250. For example, you could set the minimum bid for more exciting items at 40% of FMV and just 20% for other items. Most mobile bidding software guides guests through these steps to make their bids: Tip: register all guests and their payment information before they start bidding. However, vacation packages, event tickets, and one-of-a-kind memorabilia can sell for an incredibly high price. Participants have the opportunity to meet other passionate supporters and get caught up in a fun, competitive atmosphere as bidding wars ensue. Bid increments should be kept as low as possible and mobile bidding makes it easier to do that. Organizing a silent auctioninvolves many unique tasks that require careful and strategic thought. Others think 20-25% percent of the FMV is ideal, as the lower price could garner more interest. Just double-click and easily create content. Free Silent Auction Software - An Evaluation of Popular Options - GalaBid The fixed percentage charge is 4.75%*. Powerful missions need powerful fundraising software! A silent auction is a classic fundraising event in which guests place bids on items you've procured. However, mobile bidding allows you to keep the bid increments lower as you should see people more willing and able to whip out their phones and up their bid. But setting the right starting bids can be vital for your silent auctions success. Selling Unsold Items Online or Second Chance Auction - Handbid Pair the bid sheet with more information and get more bids. Well be happy to chat with you and point you towards tools that can help. Estimating Fair Market Value The common practice for traditional silent auctions with paper bid sheets was to set moderately high bid increments in order to create an incentive to check bid sheets. Even if they didnt purchase anything, guests who attended your event are worth making a connection with so theyll be inclined to come back to your next silent auction, which might have something that catches their eye. Voila! The general rule of thumb is to not go above or below 30-50%. This will make bidding and checkout smoother as all payment information will already be on file. Setting the right silent auction bid can be challenging. This automatically prices out anyone who would have paid $500 - $575 or $575 - $650. Open your auction as early as possible, even days in advance. Items that should not have a Buy-it-Now option include: Nice job! Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system. Bidding on paper bid sheets can be a deterrent to your event. The Easiest Way to Set Opening Bids on Live Auction Items For example a $100 beauty voucher will receive bids in a minimum of $10 increments. Survey the venue ahead of time to ensure you will have enough space for your silent auction and its accompanying foot traffic. Bidders need some time to warm up. Up to 20 Items. Diversify your promotion strategy according to your audience, and promote in multiple ways, through multiple avenues. 2. For those coming from silent auction paper bid sheets, the practice was to put bid increments reasonably high to incentivize people to bid. An online silent auction is also a great way to raise funds, especially if you have some awesome prizes to put up for auction. If yes, you can pass on lower starting bids. Free fundraising webinars and virtual workshops for nonprofit, educational, and faith-based organizations. In order to set a reasonable starting bid for each of your charity auction items, you first have to determine each item's Fair Market Value, or FMV. Reserve Price: What It Means and How It Works in Auctions - Investopedia A cash prize raffle means the winner takes a percentage of the ticket sales (you can decide in advance what that percentage will be). Determining the starting bids for items in a silent auction can be a challenging task. Keep your bid increments as low as you can stomach and try to get people engaged in the auction. There are generally two ways to win a silent auction item: Once an item is won, guests should receive an alert on their phone letting them know what they have won and how they can pick it up. By putting clear silent auction rules in place and following the dos and donts above, youll be setting your organization up for success. With a starting bid in place, set a bid increment that drives bids. This gives guests more time to familiarize themselves with your items, get familiar with your auction tools, and get ready to bid once the auction starts. We'll help you the wholeway. These items are typically physical items that have a standard retail price that is well-known or easy to find with a little research. If you have several other fundraising activities planned during a live event, such as a live auction, raffle, pledge drive, entertainment, dancing, speeches, and a 3-course dinner, higher starting bids may be more appropriate. A blanket 10% bid increment sounds good on paper, but sometimes the fair market price means a 10% bid increment isnt a whole number. To make auction planning go smoothly, use our auction planner as a guide. Your goal should be to start a bidding war. Now that you have established the fair market value for all of your silent auction items, the starting bid for each item will be calculated from that value. Modern, fast, user-friendly donation forms your donors will love. Silent auctions have potential to generate excitement and competition among your supporters, and they pair well with many types of events. Make it easier on yourself and your bidders by rounding the increment to the nearest whole dollar amount. FMV is therefore one strong indicator of how to price an item for your silent auction. He is also a proud pet parent of two very naughty dogs. You may have the ability to pick and choose the features that fit your event and its budget, but keep in mind that you want your guests experience to be as seamless as possible and that limiting your features could create more work for both you and your donors. When setting your starting bid, you are setting a price that will hopefully allow you to yield the maximum possible profit. How to Set Starting Bids At A Silent Auction | Bid Beacon Use this information to guide your starting bids for your current auction.. Earlier we mentioned, some advisers will tell you to set minimum bids at around 30-40% of fair market value. With this in mind, here are a few strategies for your auction item procurement team to consider as they start reaching out to sponsors: Work these practices into your acquisition strategy by reaching out to a variety of potential sponsors. Form a Procurement Committee To meet your fundraising goals, you need to "wow" your guests with your silent auction items. Weve outlined 6 essential silent auction rules any nonprofit can use to execute the best auction yet. Unfortunately, setting the perfect starting bids for your items isnt as simple as just using the FMV. Each section of your silent auction should be organized with clear signage. Remember, the pricing questions dont end when the silent auction countdown strikes zero, so lets talk closing out your auction. Home/Winspire News/3-Step Guide for Setting Minimum Starting Bids on Charity Auction Items. If you are the type that absolutely needs a formula - here is one to consider: Suppose you want to see roughly 13-15 bids per item that has a starting bid of $500 and an "accurate" fair-market value of $1,250. Theres no denying the positive impact that a successful silent auction can have on an organization. Let us look at an example. Unforgettable fundraising events to engage your donors, increase attendance, and boostdonations. Or you could keep starting bids low and set a higher bid increment to make more money while pricing these big-ticket items attractively. The key is conducting product research! You can try to research the fair market value, but it can be harder with these items. This part can get a little tricky, and youll have to take the context of your items into consideration, but we have some tried-and-true advice on setting starting bids and bid increments.. Just double-click and easily create content. Silent Auctions: The Complete Guide for Smarter Fundraising - Handbid Outside of starting bid prices, we also see items with absurdly high bid increments. Do you have any questions about bid increments and setting starting bids? Jeff Cova, President of Winspire, Inc., has over 17 years of experience in the Nonprofit and fundraising industry. Is that always the right point? In this time of virtual events, paper bid sheets would make your auction impossible to host safely while remaining profitable. Pricing | 32auctions Some items you receive for your silent auction may be more difficult to determine the FMV for. The items, prices, and layout of your fundraiser depend on your events theme, location, and guest demographics. For online auctions, guests should be able to redeem their purchases and receive delivery information for physical items immediately after the silent auctions end. Promptly send thank-you notes to everyone who was involved with your event, including: SILENT AUCTION TIP: In your thank-you notes, dont forget the importance of telling your supporters how the money will be used to power your mission. Step by Step Guide on How to Run a Silent Auction - Donorbox The natural bidding should never exceed the Buy-It-Now price. This is usually the case for intangible or unusual charity auction items like unique experiences or exclusive access. Well be happy to chat with you and point you towards tools that can help. Here are our ideas for 25 virtual auction items to help you put together fun packages for your next event. However, the free version of the software includes ads and auction items are limited to 20 with a maximum of 4 images per item. To secure a significant profit, it's recommended that you start bidding at 20% above the Nonprofit cost. For class projects and other "priceless items", use previous auction data to estimate the desirability of such an item to your audience. We would be happy to help. A valid ID will be necessary to purchase items with age restrictions. If youre auctioning off a purchased item, keep in mind what you paid. Silent auctions can either be held as the central event or paired with another event such as a gala, dinner, golf tournament, or other gathering. 9 Considerations when Setting Silent Auction Starting Bids. As the bids come in, your bidders will make an emotional connection with the items theyre interested in and are more likely to bid higher than the original bar theyve set. Set your starting bid at 25-40% of the items FMV. Trusted By Globally Loved Causes. In most cases, it is considered a good idea to set the minimum bid increment at 10% of the starting bid. Some ideas include: SILENT AUCTION TIP: Begin the flow of your auction with your less valuable section and end with your most valuable. How To Plan A Silent Auction: 7 Steps For Success | Givebutter give a few of your top donors a friendly call to ask for their input, Design Your Own Charity Auction Catalog [+ Template], 30+ Best Live Auction Items for Nonprofit Fundraisers, 30+ Silent Auction Basket Ideas for Nonprofit Events. Qgivs auction platform empowers nonprofits to manage their auction from start to finish and offers multiple bidding solutions for guests.