The chart is a nice starting point for discussion, but I feel you still need to consider your audience. I've been at non-profit auctions where the attendees were financially comfortable and expected to pay more than 100% for most things. And I've been at ones where the idea of a $5 min increment was too much.
Our school has a mix of income levels from higher middle class and down, with an average of 45% classified as "economically disadvantaged'.
For our auctions, we'd have to scale down from the stated minimums and increments, especially in the higher items. For instance, $20 required increment would not be well received.
But still, I respect the research and work that went into providing this table. Thanks for sharing!
So sorry I'm coming in late to this. For anyone who finds it in time for their next auction:
We did a lot of research on this, with school auction chairs and benefit auctioneers and consultants, when we were building our auction-management program. We came up with a table of values that we use to set the automatic minimum bids and minimum raises (customers can override these, but rarely do) that had the opening bids centered around 30% of Fair Market Value (but always a whole dollar amount, and usually a multiple of $5 for anything over $50 FMV).
We did publish the table in the online documentation to using our software - you can see it here:
Sounds like you are getting some good info here. Often school auctions list silent items at 20% or 30% of value. JHB brings up a good point: it's important to consider your community and what they can afford. It's human nature to start bidding on the things you are getting a good deal on, so typically even if you feel like the deal it "too good", then the price will be driven up by bidding wars.
Hello,
We do a silent auction every year and our starting bids are 20% of the value of the item. So if you have a basket worth $100, the starting bid will be $20. You should then set increments for the bids, usually $5 or $10. So then next bid would be $25 or $30 depending on what increments you set. Don't worry people will bid and get out bidded then bid again and you will make money!! Every year varies depending on the amount of items and the amount of people that show up. This year we also did a Buy It Now, where we placed a BIN # on each sheet. The BIN # was the total value plus 20% and could be purchased immediately, therefore allowing people to pay early, not have to wait till the event was over and allowed purchaser to take their item home asap. We also bought a local membership to our community water park (value $190 for a family up to 6 members) and did a giveaway at the event. This was promoted heavily and was taken out of the funds made and really helped bring in a crowd. I hope you get this in time and good luck!!
Lori
You want to set the bids lower, maybe $10 or $15 for the zoo membership you mentioned so that people can bid UP to the retail price of the item. You have to think that no one will pay MORE than $71 because that would be a waste of money, so you want to start it low enough that people see a real value to bidding on that item. Many people would see the value in bidding $15, then $20 and so on for an item worth $71.
It really depends on your audience, their income levels, and what they are used to seeing. For the auctions in our area, that would be way too high. With an item valued at $70, we'd probably set it at $15, maybe $20.
