It can be overwhelming to organise a fundraising auction, especially if you are a beginner. There are numerous components, individuals and logistics to consider when planning. However, the key to a successful auction is understanding the process and taking things one step at a time.
A charity auction is popular among nonprofits because they are an efficient way to raise money. No matter what type of auction you decide to hold, you can benefit from these fundraising ideas in Australia.
If you are new to the sea of bidding, then this article is for you. Let us discuss more about auctions and how you can conduct one.
What Is An Auction?
An auction is a sale in which the price is not established or determined through negotiation but rather through competitive and open bidding. Goods are sold to whoever pays the most for them. In the past, this was not a common way to buy something. Bartering, haggling and setting a fixed price have been much more common ways to do business than setting a price and sticking to it.
There are two main types of auctions: silent and live. A silent auction is held without an auctioneer and usually features pre-set bidding increments. Bidders write their names and bids on a sheet of paper next to the item they are interested in.
A live auction, on the other hand, is conducted by an auctioneer who calls out items and asks for bids from the audience. The fast pace of a live auction can be thrilling for attendees and often generates higher bids.
What Is An Auction?
An auction is a sale in which the price is not established or determined through negotiation but rather through competitive and open bidding. Goods are sold to whoever pays the most for them. In the past, this was not a common way to buy something. Bartering, haggling and setting a fixed price have been much more common ways to do business than setting a price and sticking to it.
There are two main types of auctions: silent and live. A silent auction is held without an auctioneer and usually features pre-set bidding increments. Bidders write their names and bids on a sheet of paper next to the item they are interested in.
A live auction, on the other hand, is conducted by an auctioneer who calls out items and asks for bids from the audience. The fast pace of a live auction can be thrilling for attendees and often generates higher bids.
Who Can Benefit From an Auction?
Organisations that can benefit the most from fundraising ideas in auction events are the ones with a wide and diverse donor base. If you have a lot of different types of people who would be interested in attending your event, then you will likely be able to generate a lot of interest and get people to bid on items. This is because there will be something for everyone at your auction.
Nonprofit organisations can use auctions to:
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- Raise money
- Acquire donated items
- Get rid of surplus inventory.
For-profit businesses can also use auctions to:
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- Sell products
- Dispose of inventory
- Buy products.
Individuals can use auctions to:
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- Sell personal belongings
- Get rid of unwanted items
- Buy products.
How to Run an Auction
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Silent Auction
Here, products are displayed throughout the room, and attendees will enter their bids on a bidding sheet. This auction format permits interaction with the contributors who take the time to inspect each item.
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Live Auction
This is the conventional method of bidding, which typically takes place at formal events. An auctioneer will conduct the bidding whilst participants attempt to outbid one another. In contrast to the silent auction, buyers are not anonymous during the live auction, which encourages healthy competition.
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Online Auction
Going digital is an effective strategy to increase your organisation’s donor base. It provides convenience for individuals who cannot attend live events. The online platform saves money because you do not need to prepare a physical location or recruit many volunteers to host the event. However, this platform’s lack of urgency is a disadvantage.
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When Do Auctions Work Well?
Although auctions can be held at any time of year, they work best when:
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- There is a diverse set of items available for auction. This ensures that there is something for everyone, which will result in more people bidding.
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- The event is well-organised and runs smoothly. This keeps attendees happy and engaged, which will result in more bids and more money raised.
Why Do Organisations Run Auctions?
Whether it’s for a specific campaign or your main cause, an auction’s main role is to raise funds. Depending on your goal, you can incorporate any type of auction, may it be silent, online or live.
History of Auctions
Auctions have been around for centuries. The first recorded auction took place in 500 BC in Greece. In this auction, women were sold as slaves. In Rome, auctions were held to sell art, cattle and land. During the Middle Ages, auctions were held to sell weapons and livestock. Auctions have been used to sell paintings in the 1500s and houses and land in the 1600s.
Sydney and Melbourne grew quickly in the 19th century, creating entrepreneurial opportunities. Some of today’s well-known auction houses were founded in these pioneering areas. Today, auctions are used to sell everything from horses, cattle and fish to flowers, furniture, art, antiquities, books, cars, collectibles and residences.
Can Businesses Be Sold in an Auction Instead of Rare Items?
Many business owners feel auctions are exclusively for selling tangible products. They don’t realise auctions can boost their business’s valuation. It may exceed their minimal asking price. Auction terms are usually better for the seller. However, before selling your firm at auction, you must understand how it works.
What’s the Auction Process?
Even the most seasoned organisers can find auction planning daunting. But don’t worry, professional organisers can help.
An auction can be done in 6 steps:
- Determine the objective of your auction— Do you want to raise money for a specific campaign or cause? Do you want to increase brand awareness? Do you want to acquire new customers? Once you know your purpose, you can start planning your auction.
- Set a date and time—Set your auction date around the launch of your campaign. This will create a sense of urgency and encourage people to bid on items.
- Find a venue—You will need a place to accommodate your guests.
- Create a guest list—Invite people who are likely to bid on items. If you’re looking to increase brand awareness, invite people who are influential in your industry.
- Source auction items—This is one of the most important steps in planning your auction. You will need to source items that are valuable and desirable to your guests.
- Promote your auction—Start promoting your auction 4–6 weeks before the event. Send out emails, post on social media and distribute flyers.
- Execute your auction—The day of your auction has arrived! Make sure you have all your materials, including your gavel, ready to go.
Helping Hand Group Auction Services: Lending You a Helping Hand
Why hire the Helping Hand Group to run your auction? We have a team of fundraising specialists who have a proven track record of success. We will work with you to determine your objectives and help you create a strategy to reach them. Furthermore, we will provide you with auction items and promote your event to ensure its success.
We, at the Helping Hand Group, are an experienced and professional event support team that can help you run your event smoothly. For more details about our services, contact us today.