WINSPIRE NEWS

Your destination for insight into the world of event fundraising, charity auctions and no-risk travel packages.

This Simple Concept Is a Game-Changer for Auction Procurement

Posted by Summy Lau

Top-Tier Spenders (1).png

When nonprofits have hosted the same event for years, it's common to reach a plateau.

Wondering how you can break through a slump and once again generate record profits?

If your event includes a live auction, a big piece of the puzzle is learning to cater to your top tier of spenders. Who has the greatest propensity to spend at your event? And how can you customize the live auction so everybody wants to participate - but only the top few percent can actually afford to?

In this post, learn concrete strategies for identifying and targeting the top tier of spenders at your fundraising auction. Mastering this concept will empower you to raise more than ever before.

Understand your audience

Who Spends slide.png

How well do you know your donor base, and specifically, event attendees?

You've already heard "knowledge is power," and in the fundraising world, it's the power that allows you to strategically get the most out of your live auction.

To snag high bids, you need to procure auction items most likely to attract a frenzy of bidding. This can only be done with at least a cursory knowledge about the people buying tickets to your event.

Read Next: "Get to Know Your Donors: The Ultimate Guide to Nonprofit Surveying"

The first step to customizing your live auction for your audience, is to analyze your guest list and determine your audience's spending capacity. Here's how benefit auctioneer Heath Hale divides the typical nonprofit gala guest list.

The Three Tiers

Tweet-tiers-1.png

"I don’t know if most of you reading agree with this illustration or not, but I find it to be true every time," shared Hale in a recent Winspire webinar. "Who are your top-tier spenders? Whenever I’m prospecting a new client, this is one of the first questions I ask."

An effective auction relies on your knowledge of who’s going to spend the money and at what level.

It's also important to understand the top tier of spenders may only be one guest.

"If you have 500 people in the ballroom and there’s one donor who can spend $25,000, and everyone else is at $10,000 or less, that one donor is your top-tier," Hale asserts. "Or maybe that top-tier is ten couples who are going to spend $10,000 or $20,000."

If you’re a smaller event, your top tier may be several people that’ll spend $1,500, and everybody else spends about $100 to $500. "I would encourage you to get a bigger fish in the room!" Hale says. "But you can still maximize your fundraising."

In the graphic above, the price ranges don’t matter nearly as much as the percentage or the portion of your audience in each range. No matter your goal, the top 5% are the people to whom you want to cater your biggest and best live auction items.

Cater the Live Auction to VIPs

build tiers.png

Once you've taken the time to understand and envision the top tier of spenders at your fundraising event, it's time to customize the live auction to match the giving level of these VIPs.

First, consider their interests. Are they artsy? Are they outdoorsy? Are they music or foodie based? Are they travelers? Whatever it is - what do you need to put in front of them?

"My key term is 'feed': Feed the top-tiered spenders," Hale explains. "This is the group you want buying your live auction items. Everyone will want to bid on them because they're awesome - but only the top-tiered spenders are going to win."

Or in the words of benefit auctioneer Danny Hooper - to get the big fish, you need big hooks.

Download our free list of over 300 amazing auction item ideas

Example 1: One top spender

11001658_10153035927995210_3956467670331586425_o.jpg

Say your auction has one couple that’s going to come and spend $15,000, and the rest of spenders are going to spend $5,000 or less.

Hale's advice: "Let’s put together one mega auction package that's going to be really desirable to everybody. The bidding is going to go up. Maybe somebody doesn’t bid against them all the way up to $15,000, but maybe that $5,000 bidder stretches to $8,000 or $10,000.

"Now you’re able to sell an item for $10,000 and they have $5,000 left in their pocket to get you started on the Fund-a-Need."

Example 2: Multiple top spenders

Bidders_with_Bid_Cards.jpg

Maybe your top tier of spenders, if you’re a big event, is several people that are going to spend $20,000.

Hale's take: "Let’s put together three great items, and let those five people fight over them. Then you can further develop that middle tier of auction packages: items that are a level down but still highly sought after and valuable."

Finally, your third tier of bidders are donors who will certainly want to bid on the auction items, but are more likely to get a silent auction item, do the raffle or raise a paddle.

Bottom line: You want your live auction to be desirable for everyone, but only your top tier of spenders can afford to win.

Snag Top- and Mid-Level Bidding with Travel

One of the best ways to snag top-tier bidding is using incredible bucket-list travel packages. Stay tuned for part 2 of this post in which we explain the best ways to procure travel items that feed first the top tier of spenders, then the second tier, at your event.

In the meantime, click below to check out our top 10 Experiences selling like hotcakes in 2017.

Looking for auction items?

Event Production, Live Auction
Summy Lau
Summy Lau
As Fundraising Editor, Summy brings hands-on experience in nonprofit development, event fundraising, publishing, copywriting and design to Winspire News. She creates blog content, infographics, templates, eBooks and other resources to help fundraising professionals and volunteers exceed their fundraising goals. Her two favorite perks of working at Winspire: hearing nonprofit success stories and dreaming of new bucket list destinations.

Related Posts

Baby Boomer Travel Trends for 2019: Infographic

Did you know... Baby Boomers spend a whopping $157 billion on travel each year? If people ages 50 to 70 are a target demographic for your nonprofit, it's smart to know where and why they're traveling. What's on their bucket lists? What kinds of trips and activities are they planning in 2019 and beyond? We put together an infographic with must-read statistics on baby boomer travel trends, plus tips to include top destinations in your fundraising efforts. 

  • 2 min read
  • Feb 28, 2019 4:02:07 PM

AFP ICON 2019: Visit Winspire at Booth 124!

The AFP International Conference on Fundraising, or AFP ICON 2019, is coming up March 31 to April 2 in San Antonio. Winspire will be in attendance, so come visit us at Booth 124! We love meeting new people, visiting nonprofit partners and collaborating on innovative ways to support your organization. Plus, we'll be giving away a 5-night luxury hotel stay to one lucky visitor! For more specifics about the event please visit the AFP event homepage.

  • 4 min read
  • Feb 28, 2019 3:24:02 PM

Donation Giveaway: $1,000 Shopping Spree Winner!

We are thrilled to announce the winner of Winspire's first Donation Give-Away drawing of 2019! Congratulations goes to Kim, Director of Advancement at The Bright School in Chattanooga. For more than 100 years, The Bright School has provided an educational foundation for generations of children in the Chattanooga area. It's our honor to be able to donate gift cards to Neiman Marcus and Nordstrom ($1,000 total) for their use in an upcoming fundraiser.

  • 6 min read
  • Feb 21, 2019 10:23:23 AM