One of the most advantageous parts of using consignment items in a charity auction is the ability to sell them to more than one bidder. This simple strategy, when utilized correctly, can quickly amplify the amount your organization makes on a single auction item.
At Nonprofit auction events, friendly bidding wars among guests result in more money raised for charity. Plus, everyone likes to be part of an active auction. When bidders compete over a single item, however, that usually only means one winner per item. With certain consignment items, such as auction travel packages, it can be a different story completely. Instead of only selling to the highest bidder, you can sell a single item multiple times and double, triple or even quadruple the amount you raise from the auction.
Consider the following example:
A travel auction package has a Nonprofit cost of $2,200 with a target sale price of $2,6400 (20% over cost)...
The top three bidders submit bids at $3,300, $3,400 and $3,500. If you sell the package to the top bidder, you net $1,300 - which is great! But if you reduce the price to $3,300 (the lowest of the top three bids) and sell it to all three top bidders, you will net $3,300 - almost tripling the amount raised on a single package!
So how can your Nonprofit set the stage for successfully selling auction trip packages multiple times during a fundraising auction? Consider these tips:
1. Find the right consignment company
Work with a reputable consignment company that offers clients the ability to sell auction packages more than once. Every Winspire Experience, for example, can be sold to more than one bidder, often with no limit.
2. Know and understand the reserve price
A reserve price is a hidden minimum price—essentially, the lowest price you're willing to accept for an auction item. Big-ticket consignment packages come with a base price for Nonprofits. This is what it costs the charity to claim the prize. Understanding this cost and setting the appropriate reserve price at the auction will help ensure you price the package accordingly to encourage bidding and maximize your profit. We usually recommend setting a reserve of 20% or more over the Nonprofit cost.
3. Keep it a secret
Don’t tell your guests that more than one auction package is available, because you want bidders to drive the price up. Instead, wait until the end when the winner is determined and then ask the next top bidders if they would also be interested in the package at the last price bid.
Here's how it's done...