Once you have selected the Philantopia auction travel packages you would like to auction at your nonprofit fundraising event, it’s time to crunch some numbers to figure out where you should set your starting bids.
Here are some guidelines to follow when selecting your starting bids.
Consider the Retail Value of the Consignment Auction Package
Philantopia provides the retail value of each of our travel packages. Note: this is not the same as the reserve price. Here’s the difference:
Retail Value is the fair market value of the package. This is what a member of the public will pay if they were to purchase the package on their own.
Reserve Price is the rate we charge nonprofits. This will always be less than the retail value.
You can find the retail value at the bottom of each Philantopia auction package page. Knowing this number will help you calculate your starting bid.
The Art of Setting the Right Starting Bid
There is only one hard and fast rule for setting your starting bid, and we always put it in bold type in our contracts with nonprofit clients: your starting bid must be higher than the reserve price of your Philantopia auction package.
Following this rule will ensure that your nonprofit makes money on each package you sell. Remember: the reserve price is the amount your nonprofit must pay for the package, so to make sure that your organization brings in money on the auction package, set a starting bid at a rate that is higher than the reserve price.
Figuring out exactly how much higher is where a little bit of experience comes in handy. Our Auction Advisors are available to assist you with determining your starting bids.
Consider Your Donor Demographics and the Event
When thinking about where to set your starting bids, consider your donor demographics and the type of event you’re hosting. If your nonprofit is a local humane society, and your donors are mostly neighborhood folks who love animals and are paying $50 a ticket, you might set your starting bid as low as the reserve price + $300. This way, even if only one person bids on the package, you’ll still make $300.
If your nonprofit is a huge foundation affiliated with an NFL team, and donors are big spenders paying $10,000 a plate, then you’ll be safe setting your starting bids a bit higher, say, 20-40% above the reserve price. Again, your Auction Advisor can assist in determining your opening bid.
Think about the people who will be bidding on the auction items, and look at your donors’ giving history to help gauge the best starting bids.
Work with a Philantopia Auction Advisor
Our auction advisors are experts at helping nonprofits select the right auction packages for their events. Our goal is to help you make money! We’ve seen what works, and what doesn’t work, and we can guide you in the right direction.
When you purchase a risk-free Philantopia travel package, you’ll have the opportunity to talk through some important points with us, including:
How to choose the right package for your donor demographic. A stay at the Fairmont Sonoma Mission Inn Luxury Hotel Package will appeal to one type of donor (golfers, lovers of luxury) while the Ezulwini ‘Paradise’ African Safari Package will appeal to another (globe trotters, adventurers). Our auction advisors will ask questions about your donor base and give recommendations based on their years of experience.
How to set your starting bids. Looking at your donor demographics, the event you’re throwing, and which packages you’re offering, we’ll help you determine the best starting bids for your auction packages to make sure that your nonprofit makes money.
How to position your Philantopia auction packages to sell. Our auction advisors will show you how to set a starting bid that takes the retail value of the package into consideration. The idea is to set a starting bid that ensures you make money, and will leave the bidders feeling excited because they got a good deal on their vacation package.
How to make the most of your Philantopia travel packages. There are a few best practices that we love to share with our nonprofit customers to make sure that you get the most out of your Philantopia auction packages.
For instance, with most Philantopia travel packages, you have the option of selling multiples! This means that you can actually sell the same package to all of your top bidders. Check out our recent blog post on this topic for more insight into how exactly to do this.
If you’re ready to talk to one of our auction advisors today, fill out the form on this page and we’ll get in touch with you.
Find the Perfect Philantopia Travel Package
Browse our risk-free consignment auction travel packages to find the perfect package for your upcoming fundraising auction, raffle or sweepstakes.
All our packages are offered on consignment, meaning that you only pay for them when your donor has paid for them. This means there’s no risk to your nonprofit: if the package doesn’t sell, you’re off the hook! We also provide beautiful imagery and descriptive text to accompany each package.
Whether your donors are in the mood to soak up some sun on the beach, perfect their golf game, try amazing food or wine, hit the slopes, or something else, we’ve got the perfect package!