Minimum Bids for Silent Items

Tue, 20 Feb 2007 14:20:45 GMT

Minimum Bids

From time to time, clients ask "What percentages do you use for minimum bids on silent items?"

When we were first involved in fundraising auctions, almost every item started around 30-40% of value. The goal was to provide a minimum bid (and raise) that fostered spirited bidding, and could still leave someone feeling like they got a deal. We've never been able to apply a "one size fits all" formula, and as time has gone on, we've broadened that range considerably. (And we're trying to change the silent auction from feeling like an elegant garage sale.)

Restaurant gift certificates pretty much always go for full value, or higher. Bidders know that they will be able to enjoy the full value of the certificate. As a result, they are generous when they bid on these. So we now set the minimum bid for restaurant gift certificates at 50% of value.

Unique "guy" gifts tend to do well at our events. For instance, a donor put together a package for "grilling" comprised of a non-stick grill tray, cookbook & electronic wireless temperature gauge. It had all the perfect appeal for men... it involved danger (fire) and electronic gadgetry! ;-) So we put the minimum up around 50% for items such as these.

On the other hand, "tchotzkies" for the house, such as a ceramic figurine, can be a tough sell, unless they have special emotional value, or are originals. Most people already have too much "stuff" and may hesitate before adding to the collection. So, at the risk of offending a donor, these items might have a minimum bid of only 20-25% of quoted value. Note--it's even more embarassing if an item doesn't receive any bids at all!

We still use the 30-40% range as a starting point. The majority of our tangible items end up with a starting value in this range. Nicer and more unique items start around 40%; more ordinary items, that could be readily found on sale in town will be closer to 30% starting bid.

What about items where the donor does not provide a value, or the value provided seems peculiar? The internet is a great resource. Visit your favorite online shopping or auction sites to find similar items; this will give you a good idea of the market value for the item. Once you've established this, then you can begin to set minimum bids & raises.

Handmade, one-of-a-kind and "personal gifts" are the most challenging items for which to establish bid sheet values. Some will go sky-high--such as child's chair, with colorful painted "hand-prints" of the kindergarden class. Others will have a more limited appeal, such as a cross-stitched throw pillow in a teal & peach floral design.

Ask your team for guidance...and hope for the best on these!

What about used items? They can be every team's nightmare--do your best in pre-event publications to discourage used goods. The donors seem to mean well, but dowdy items will make the entire silent auction look tired, and reduce bids overall. We've received a used fax machine that required special paper, lamp with dented lampshade, aquarium with cracked glass on one wall, etc. Except for antiques and artwork, it may be necessary to ask the donor if their gift would be better received at a local thrift shop. This is very difficult. If your organization feels they must accept these items for the auction, put them in a "Bargain Basement" section, and set very minimal starting bids on these, or even "make an offer" as part of the full description. It's no fun to have unsold "junk" that you have to cart away after the event.

In summary, setting minimum bids is not an exact science. Balancing revenue and getting items to "move" is a retailing art, and you'll need to consider minimums thoughtfully.

Triplicate Bid Sheets

Sun, 28 Jan 2007 18:50:50 GMT

Many organizations have used triplicate bid sheets for bid entry at their silent auction, usually three copies, white, yellow and pink, and placed by the item on the table. This paper is also called "NCR paper." Guests place bids by writing on the top copy with a ballpoint pen. The chemicals on the paper combined with the pressure of the pen create carbon copies of the written image. Is it necessary or useful to have three copies? Let's explore further.

Why triplicate bid sheets?

At traditional events without event management software, when bidding is completed, the top two copies of the triplicate form are pulled off by volunteers. The remaining copy is left on the table near the item for reference. The top two copies are torn apart; one copy goes into a file or binder sorted by item number, the other copy is sorted into a hanging file by bidder number. Tearing the sheets apart, sorting, and filing them requires several volunteers and significant time.

When the guest is ready to check out, the bidder copies for that guest are pulled from their hanging file and totaled by adding machine or calculator. Sales tax should also be added for certain items in many states. However, most organizations choose to reduce total event proceeds by paying the sales tax out of the payments, or simply fail to comply with local and state regulations. Depending on legibility and the cashier's facility with the calculator or adding machine, the cashier may be able to total the bid sheets quickly, or it may take some time.

Why NOT triplicate bid sheets?

With event management software, bids are entered into the computer by typing Item #, Bid # and Bid Amount into a rapid data entry screen; the software produces comprehensive, itemized and totaled invoices. Multiple copies of the invoice can be printed so both the cashier and guest can keep a copy of the invoice reflecting payment. Event software, such as Auction!, can add applicable sales tax for the flagged items. Bids are entered as sections close and during dinner, so invoices can be printed in batch or singly, on demand. As a result, bidder copies of the bid sheets are no longer necessary.

What about duplicate bid sheets?

This is a tougher question--Leaving the second copy on the table can be helpful for your item redemption team. When guests bring itemized invoices to item redemption, it's easier to confirm the correct item to be picked up.

However, a copy of the bid sheet left on the table once a section is closed encourages "looky-lou's." These guests spend time investigating who bid against whom, and who won certain items, rather than continuing to bid in the next section or enjoying the company of friends at the event. While this is an understandable curiosity, it is not particularly productive behavior at your event, as they often drag others to review those same bids.

If you choose to leave a copy of the bid sheet on the table, we strongly encourage you to rope off or isolate those sections once closed.

How do I print multiple copies?

Auction! is flexible; you can set it to print one, two, three, even up to five copies of your bid sheets. See My Photos, Bid Sheets & Catalogs

Or you can print your bid sheets to a PDF file, and email or take the file to a printer who'll create your duplicate or triplicate sets. You can control the exact result! See Printing Duplicate or Triplicate Bid Sheets for details.