Imagine a beautifully decorated venue buzzing with excitement. The auctioneer’s voice rings out, building suspense for a high-value auction item as paddles shoot into the air in an exhilarating display of competition and generosity.
Live auctions are more than just fun events—they’re immersive experiences that engage donors in your mission. By creating a dynamic space where donors connect with your team and share in collective enthusiasm, live auctions transform participation into a celebration of impact.
While show-stopping auction items lay the foundation for participation, strategic pricing and presentation inspire donors to bid. In this guide, we’ll explore proven tips related to these areas to boost your live auction’s fundraising and engagement potential. Let’s get started!
1. Determine Each Item’s Fair Market Value
The fair market value (FMV) of an item is the price it would sell for on the open market. For example, the FMV of a $75 gift certificate to a local restaurant would be $75. While this example is straightforward, it’s trickier for items like vacation packages, services, and event tickets.
Knowing the FMV of an item provides you with a baseline for a reasonable starting bid that ensures profitability. While starting too high relative to the FMV may deter bidders, starting too low can undervalue the item and limit revenue.
Winspire’s guide to in-kind donations suggests these resources to help you determine auction prizes’ FMV:
- Online Research: For common goods, look up the price for your exact item or a comparable one using retailer websites. Etsy and other craft marketplaces can help value custom pieces like artwork.
- Your Nonprofit’s Network: If you know of other organizations that host auctions, ask how they’ve valued similar items.
- The Item’s Provider: Request an estimate from the item’s donor. For unique goods like signed sports memorabilia, use their estimate cautiously since some owners tend to overvalue these items.
- Supporter Conversations: Consult with potential bidders to gauge what they’d be willing to pay or what they’ve spent on similar items at other auctions.
To maximize profits and stay on budget, try to acquire auction items below their FMV through donations or nonprofit discounts. For particularly hard-to-find items, consider partnering with consignment companies. In this setup, your nonprofit will only pay the provider a set fee if the item sells, reducing upfront costs.
For instance, a consignment company might offer valuable travel packages, such as a romantic getaway to Italy or an unforgettable Super Bowl trip. That way, you can offer high-end auction items without paying steep prices if the items don’t sell.
2. Develop Dynamic Pricing Models
Effective pricing drives competitive bids while maximizing your auction’s revenue. By developing dynamic pricing models, you can create engaging bidding experiences that push the final sale price higher.
Here is a breakdown of how to price auction items strategically:
- Starting Bid: Start bids between 25-30% of each item’s FMV. We recommend placing common items on the lower end of that spectrum and unique items on the higher end.
- Reserve Price: Set a minimum acceptable sale price, typically 20% of the FMV, to ensure the item generates revenue even if bidding is slow.
- Bid Increments: Define a consistent minimum increase of up to 10% of the starting bid amount. This keeps bidding competitive and moving quickly.
Beyond effective pricing, choose a good auctioneer who can assess the crowd’s energy and adjust pricing tactics on the fly. For example, if an item attracts a lot of interest early on, the auctioneer might propose large bid increments to speed up the process. For items struggling to gain traction, they might encourage smaller bid increments or highlight the prize’s unique features to re-engage the audience.
3. Promote Items in Event Marketing Materials
Highlighting your auction items in marketing materials builds excitement and ensures supporters arrive ready to bid. Since different platforms attract attention from different supporter segments, promoting items across multiple channels helps you reach the broadest possible audience.
Preview your items using these key channels:
- Website: Feature your top items on a dedicated event page on your nonprofit’s website alongside your online registration form and contact information if supporters have questions.
- Email: Send teasers showcasing standout items and encourage recipients to RSVP for your event.
- Social Media: Share sneak peeks of items, countdowns to your event, and behind-the-scenes prep on your social media channels.
- Direct Mail: Mail postcards or flyers with event details and a few spotlight items to generate buzz.
When incorporating auction items into your promotional materials, give each one a catchy name and a compelling description to highlight its unique value. Pairing these with high-quality images will make your promotion more visually appealing and impactful.
Additionally, focus on promoting prizes that are rare, unique, or exclusive to your auction. These spotlighted items can spark enthusiasm and motivate people to participate.
4. Create an Auction Catalog
An auction catalog provides an overview of the items up for bidding to help bidders participate confidently. It also reinforces your nonprofit’s brand and mission, creating a cohesive experience for supporters.
To create a compelling catalog, include all of the information attendees need to participate. Here are some key elements to incorporate:
- Branded Cover Page: Use your nonprofit’s logo, event name, and an eye-catching design.
- Welcome Letter: Greet attendees with a brief message about the purpose of your auction, a short statement about your mission, and how their contributions will make an impact.
- Event Agenda: Live auctions are dynamic events that often involve more than just bidding on items. Outline the timeline for the evening, including items like the auction start and end time, dinner or networking time, and entertainment or performances.
- Auction Item List: List two to three items per page with attractive photos, engaging descriptions, and relevant details.
- Sponsor Acknowledgments: Include the logos of your event sponsors on an Acknowledgments page or beside items they donated. Double the Donation explains that publicly thanking sponsors gives businesses exposure as a reward for supporting your event, leading to partnerships that outlast your event.
Avoid including starting bids or estimated FMVs in the catalog unless absolutely necessary. This keeps the bidding dynamic and allows your auctioneer to adjust strategies based on audience engagement.
Whether it’s a physical booklet or an online PDF, the catalog should reflect the professionalism of your event and encourage excitement around items. With digital auction platforms, nonprofits can easily post the catalog online, share it via email, and even integrate it into the bidding process, ensuring supporters can explore items from any device.
5. Display Prizes on Stage During Bidding
A strategic display during bidding can enhance the visual appeal of your auction and motivate the audience to bid generously.
Place smaller, tangible items like jewelry or gift baskets on the stage or a podium where they’re easy to see. Ensure they’re well-lit and attractively arranged. For experiences, large items, or services that can’t be physically displayed, use visual aids such as poster boards or projected slideshows.
As each item is presented, the auctioneer should use engaging commentary to highlight its appeal. They should briefly emphasize unique aspects or the exclusivity of the prize to spark competition among bidders.
Throughout the event, hand out tickets or receipts to winners, so they can claim their items afterward. For larger items, arrange a delivery or pickup time. For experiences and services, your team may need to follow up with winners to finalize details or provide third-party booking vouchers. A smooth checkout process leaves a positive final impression, encouraging participants to support future events.
By using these pricing and presentation strategies, your nonprofit will create an impactful live auction that motivates generous bidding. After the auction, don’t forget to gather feedback through post-event surveys. These insights can help deepen donor relationships and make future auctions even more successful.
