Determining Pricing For Your Auction Items
You goal is to generate revenue. For donated items where you have no cost, start the bidding a below the retail value. For example, you might start the bidding on a $100 gift card donated by a local merchant at $80. Bidders will bid because of the discounted value. You will be surprised to see the final winning bid may be a bit above retail value as someone wants to support your organization.
For consignment items where you pay for the auction item only if it sells, set the opening bid approximately 20% above the consignment cost. For example, you list a framed sports print with a cost of $150 if sold. List the opening bid as $180. This provides an initial profit.
When sourcing consignment items, the provider of the auction items can give you an idea of what the final bid value should be based on prior auctions. Take a look at some consignment items provided by Perfect Silent Auction HERE.
Note: Always list shipping as an add-on cost to be sure you realize a real profit. You can state that shipping will depend on the ship-to location and provide the final cost including shipping to the winning bidder.
Countdown Technique to Maximize Sale Price Of An Auction Item
When you add an item to your auction, you set a date and time when the auction will end. For example, on Friday, June 25th at 5 pm. Bids can be accepted up until that closing time.
The auctions software you use should allow you to see all the bidders with their contact information (cell number, e-mail address). This is a key feature of the Perfect Silent Auction.
As the closing time for your auction approaches, contact all current bidders to remind them that the auction for the item they bid on is ending. This will encourage them to check on the current bid for the item and bid again.
Also, be sure your auction platform has a feature which alerts current bidders on an item anytime they are outbid with a link back to the item.
Also, social media is another platform for alerting everyone to check the auction site for items ending soon.
Revenue and Expense Template
It is important to track your revenue and expense projections for any auction. Perfect Silent Auction will provide our auction software users with an Excel template that will make tracking revenue and expenses easy. For a copy, e-mail email@example.com and request the Auction Revenue Tracker.