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!
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