Maximizing Auction Item Value: Tips & Strategies
Typically, you can anticipate garnering around 50% of the market value for the procured items, though this figure varies. While some items may surpass expectations, others may fall short. If you're feeling like, "I put so much effort into securing these items, and now I'll only get half their value?"—I get it. I've been there. Here are some strategies to maximize your returns.
I have two suggestions for how to get the most money possible for your auction items. The first is a “Buy it Now” board. The second is playing with the “starting bid’ and/or the bid increments for the items.
“Buy It Now” boards
A "Buy It Now" board at an auction is a display or section of the auction where items are available for immediate purchase at a fixed price, without going through the traditional bidding process. This concept is similar to the "Buy Now" option on bid sheets.
Here's how a "Buy It Now" board typically works:
Fixed Prices: Various items or experiences are listed on the "Buy It Now" board, each with a predetermined fixed price set by the organizers or donors. These items can range from donated goods to special experiences, services, or packages.
Immediate Purchase: Attendees at the auction event can browse the items on the "Buy It Now" board and, if they wish to purchase one of them, they can do so by paying the fixed price listed for that item. This allows them to secure the item without having to bid against other attendees.
Instant Gratification: The "Buy It Now" board is popular because it provides instant gratification for attendees who want to support the cause and acquire an item they desire without the uncertainty of bidding. It's particularly useful for people who may not want to engage in a bidding war or who have a specific item in mind.
Common items on a "Buy It Now" board at a charity auction might include gift certificates, vacation packages, exclusive experiences, or high-demand items donated by businesses or individuals.
The "Buy It Now" board is a versatile tool that combines the excitement of an auction with the convenience of direct purchasing, making it a valuable component of fundraising events. It allows attendees to support the cause while obtaining something of value to them.
In our school auction, we introduced "Buy it Now" boards featuring exclusively gift certificates. These boards included restaurant gift certificates as well as various retail stores and services, such as spa treatments or automotive services. Typically, we priced these items at their full face value, ensuring that their worth remained intact. Occasionally, there were a few gift certificates left unclaimed, which our auctioneer would incorporate as prizes for the live auction warm-up activities.
Here's how we arranged it: We purchased a large foam board from a craft store and proceeded to print the catalog of available items and gift certificates. This list included a unique item number, the restaurant or store name and the gift certificate's face value (the price the bidder would pay) and a space for the bidder's number. Just like the "Buy Now" option on a bid sheet, bidders would add their bid number next to their chosen gift certificate. Following the auction, we reconciled all the winnings, distributed the items, and processed credit card payments.
Analyzing Bid Structure to Increase Income
In the “How to Throw an Auction” guideline, I discuss how to think about starting bids and bid increments in detail. But, in a nutshell, you could raise the starting bid of some items from the recommended 30% - 40% of market value to 50% or more of the market value to ensure that you are at least making half of the value of the item as income. There is a bit of a science to starting bids and bid increments, and I go into that in the “How To Throw a School Auction” guideline.
