How to Price Silent Auction Items

Cabo San Lucas, Mexico

Pricing nonprofit auction items can be tricky. Your organization doesn’t want to price so high to the point where donors are offended and put off; but you also don’t want to go too low and risk not profiting enough. Luckily auction consignment companies like BlueTree Marketing have a great formula when it comes to pricing charity auction items.

Step 1: Research the Known Price of Tangible Items

Take your time to learn the market and see what your fundraising auction items are actually worth.

Step 2: Estimate the Value of Intangible Items

Work with your fundraiser planning team on the fair value on intangible items, such as meeting a celebrity or getting backstage access

Step 3: Set a Minimum Bid at 50% of an Auction’s Fair Market Value

This will really get the action going.

Step 4: Set a Higher Minimum Bid for Unique Auction Items

Remember, these are once-in-a-lifetime experiences!

Step 5: Start by Increasing Bids by 15% of the Item’s Fair Market Value

...Or $5, whichever is higher. If you start at 30%, you can reach 70% with just four more bids. Any bids after that may earn you more than average for the item.

Step 6: Offer a “Buy-It-Now” Option at 125% of the Item’s Fair Market Value

You never know when a donor really wants something!

For more pricing tips and non-profit auction ideas, contact BlueTree Marketing today!