Top Tips For Pricing Your Silent Auction Items

Wondering how to price silent auction items? Step right up for our handy step-by-step guide. Silent auctions are one of the most popular auction types for charities of all kinds. 

From non-profit organizations in the arts and culture space, such as Americans for the Arts to nonprofits organizations that serve the higher education community, such as Scholarship America, silent auctions are a great way to raise funds at your events. 

The ABCs of Pricing Items for Silent Auctions To Benefit Nonprofits

Here’s what you need to know about silent auctions and how to price silent auction items you want to put up for bid.

What Exactly Is a Silent Auction?

The notion of a silent auction differs somewhat depending on whether it's hosted in the brick-and-mortar world or online. At a live auction, the items that are up for bid are displayed in a room where auction attendees can walk around to assess them. This way, they can see items up close and place their bids. 

In this case, the 'silent' part refers to the fact that there is no auctioneer involved. Rather, participants place their bids anonymously on a bidding sheet using their predetermined bidding number. 

However, things work a little differently in the online space. A virtual silent auction is perhaps one of the simplest ways to put items up for a bid these days as more people can easily participate.

When you participate in a virtual silent auction, you can place your bid anonymously from your smartphone, tablet, or PC. The hosting auctioneers will then review the bids received and reward items to the highest bidder . It's as simple as that. 

TOP TIP! Some of the items that sell best at silent auctions include popular home accessories, fine dining restaurant vouchers, weekend hotel packages, sports memorabilia, and unique event experiences. 

The Benefits of Hosting an Online Silent Auction 

There are many benefits associated with online silent auctions. This includes: 

• A wider reach. When you host your silent auction online, people can join in from wherever they are. This increases your pool of potential bidders exponentially.  
• A roomier time window. Live silent auctions are tied to a specific timeframe because people have to arrive, bid, and leave again. With online bidding, you can keep the bidding going for a far longer time. 
• The opportunity to set smaller bid increments. Smaller bid increments make for more frequent bidding - that much is for sure. However, in a live bidding situation, auction-goers aren’t very likely to walk around trying to outbid each other by $10 here and $50 there. However, when it comes to mobile and online bidding, these small increments make all the difference! 
• Less likelihood of human error. At brick-and-mortar silent auctions, human error can creep in quite quickly. After all, you’re dealing with tangible bidding sheets filled with all sorts of handwriting. In the digital space, you circumvent all this to arrive at a clear auction winner far sooner and with more ease. 

How To price Silent Auction Items

The starting bid you place on your online silent auction items will, first and foremost, depend on where it came from. For example, whether it was donated, if it’s on consignment, or if you’re dealing with an item that has more sentimental value than the dollar value. 

A good rule of thumb for donated items is to look at their fair market value (FMV) and place your starting bid at 30% of that number. So, if the FMV is $300, start the bid at $90.

When it comes to items on consignment from providers, place your starting bid at least 10% over the price of the item in question. For example, if the item would cost $300, start bidding at $330. 

Sometimes, you may deal with items that don’t have a hard-and-fast price tag but rather play in the sentimental space. In this situation, your best option is bidding nice and low. Take the process slowly so guests have time to build an emotional connection to the item(s) in question and understand its sentimental value. 

Top Tips to Get More Bids at Silent Auctions

The goal of any silent auction should always be to accrue as much revenue as possible for your cause. This will ensure that you can continue to do good work. 

Fortunately, there are little tricks of the trade that you can employ to increase the likelihood of higher or more frequent bids. 

Here are some to take note of:

1. Always assign bidding numbers. There are quite a few reasons why bidders may choose to remain anonymous. So, it's always good to give them the option of doing so right from the start. Assigning bidding numbers makes this effortless. 
2. Up the stakes with bidding bundles. If you have a fair amount of items to auction off, you can lessen your admin and up the stakes considerably at the same time by creating bundles of related items. For instance, you could bundle an apple-picking excursion with lunch at a nearby restaurant, accommodation on the farm, and vouchers for clothing from an outdoor retailer. 
3. Always offer a “buy now” rate. In certain cases, a bidder may be so motivated to get their hands on something right then and there that they are willing to pay a bit over market value. Offer them the option to do so by setting a “buy now” rate. It's fast and easy for you. And, if the bidder is willing to pay the higher rate for an item, more power to them!

Final Thoughts On How To Price Silent Auction Items

Setting prices for your silent auction items does not have to be daunting. Start by focusing on the origin of the item(s) in question (e.g., donation or consignment), and take it from there.

Whether you choose a virtual charity auction or prefer to host one in person, following the guidelines in this blog post will ensure your fundraising success.