Fundraising news, ideas and inspiration for professional charity fundraisers

Event auction technology – who pays for the ‘discounted service’?

Event auction technology – who pays for the ‘discounted service’?

It’s simple. Your technology supplier offers their electronic bidding system for little or no cost – so the supplier is absorbing the cost, right? Not necessarily – remember, there’s no such thing as a free lunch!

Fact is, your supplier is subsidising the cost of providing their technology via their margin on Lot Items they are also supplying (proven by the fact that you will pay for their service if you do not require Lot Items).

So, that cost is being met by your guests within the amount they pay for the Item, rather than by you (the charity) within your event costs overall.

Fair enough, you might say, but consider this comparison and decide which sits better with you, as a charity… Making the assumption your generous guest (supporter) wins a short break in Italy, with a ‘value’ of about £500 and that it will sell at £200 above the reserve:

Scenario 1

You pay nothing for the electronic bidding. So, the supply cost of the Italy Experience is £700, reserve £800 and the Item sells for £1000. The guest gets a package worth £500 and you get £300 profit (less any percentage shared with the technology supplier).

Scenario 2

You pay a reasonable fee for the electronic bidding. Here the item supply cost is £500, reserve £600 and the Item sells for £800. The guest still gets a package worth £500 and you still get £300 profit (less a portion toward the cost of the technology).

Auction Direct are a specialist supplier of Lot Items at competitive ‘direct’ supply prices. We offer Silent Auctions both with electronic bidding AND traditional ‘secret bidding’ using paper bid slips. If supplying technology, we charge a reasonable fee which you will need to consider from your bottom line, rather than expecting your supporters to pay for it and then be potentially disappointed with the value of their prize.

Supporter satisfaction should be as important as persuading them to part with cash at your event.

Satisfied supporter = repeat support and loyalty!

Auction Direct quality, framed Limited Edition Art and Memorabilia can be trusted for authenticity and durability. Our VIP concierge booking service aims for 100% customer satisfaction when booking our Experiences – and our vouchers are switchable, transferable and are valid for 18 months.

We hope that all sits well with you, our valued charity clients.

www.auction-direct.co.uk
01386 725 092

Howard Lake is a digital fundraising entrepreneur. Publisher of UK Fundraising, the world's first web resource for professional fundraisers, since 1994. Trainer and consultant in digital fundraising. Founder of Fundraising Camp.

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