PTO Today

For those of you who have held silent auctions.. could you please tell me how you decided starting bid amounts and bid increments?

I need this info ASAP.

thanks

Stacee

We try to determine the street value for the items and then start the bidding at 1/2 that amount. It always makes people feel like they are getting a "deal" but we usually end up with at least double the minimum bid, so it all works out. There will always be the unpopular items that go for less than their value, but hopefully they were donated.

how about how do you decide bid increments?

To decide on a starting value, we do a base calculation of 30% of the value and then make adjustments accordingly. EX: A trip to Walt Disney could start at 50% but a print by an unknown artist may be valued at 30%. The key is to use the starting bid to motivate the bidders to bid higher and to feel that they will still get a deal if they bid three or four times.

As far as increments go, the formula we find that works is: 0-$25= +$1, $26-$50=+$2, $51-$100=+$5, anything over $100 is plus 10. If you had something of considerable value that you think would definitely sell (ex: a trip) then you could increase the increments to $25 or so. What you want to achieve with both the starting bid and the increments is to make the bidding available and appealing to all.

A general formula we use is the minimum bid is 30% of the item's value. Increments are 10% of the value up to 150% which is the guaranteed purchase price. We run all of those numbers in a spreadsheet and then change the specific ones we know can/will go higher.

What do you mean by 150% is the guaranteed purchase price? Is that like a Buy It Now deal? Do you mean 150% of the value indicated by the donor? Don't you indicate the true value of your item?