I agree - you need to use some discretion on this. It also depends on the popularity of the item and how many people might actually be interested. A couple of examples:
Tooth Whitening Treatment from Local Dentist ($300)
Computer Training Class ($200)
Hotel Night ($195)
These are items that will get bids - but not if we started them at 50% of value. Others, that had a lower value or wider popularity might indeed be okay to start at 50%.
Our group starts with minimum bids of $5, $10, $20, etc. That's more in line with what our population (many low-income) would expect. While our Spring Fling/Auction is a fundraiser - it's also a family event, intended for people to have fun. Making the auction too pricy, isn't "fun."
I agree with mjtillson...Typically the items you auction off are donated, so you paid nothing for them and you are making money no matter what an item goes for.
You need to start off lower so that people will begin to bid on the item.
I am the auction chair at our school and we always start our bids at half the value unless we have made an investment such as a frame for a picture of basket then we add that to the starting price. Since items were donated you still make a profit and parents feel like they got a deal. Just make sure you list the full value on the bid sheet.
Our group will be having our annual fundraiser soon. We will have a live and silent auction. At the meeting last night, one of the committee members said that bidding MUST start at the value. She argued that if we didn't receive full value for the item, then we are losing money, and that this will be a fundraiser, not a bargain shop. I, personally, have always enjoyed not only getting bargains, but overbidding in the frenzied competition with somebody else! Please advise as to how to establish the initial bidding price. Thanks!
