Fast-talking auctioneers and fast-paced events with high-ticketed items are what most people think of when an auction comes to mind. While this may be the most popular way to auction items off, it’s certainly not the only way.
Silent auctions, which involve placing bids silently and anonymously, are a popular auction type to help raise money for a fundraising event or to coincide with a gala or awards ceremony. This blog will explore how silent auctions work, provide tips on how to run one, and give ideas on which items to use.
The “silent” part of the auction comes from the fact that an auctioneer isn’t present. Instead, people write bids down on a piece of paper. At the end of the auction, the item is awarded to the person who silently bid the highest amount.
This is a broad overview of how a silent auction operates. More specifically, auction items are displayed (usually on a table) with a description of the item. A bid sheet for each item allows you to place a silent bid – typically, you’ll have a number assigned to you, and you’ll write that number down as opposed to your name.
There is a specific amount of time allotted to make bids, thus allowing time to change or alter bids throughout the duration of the event.
In general, the bid sheets will have a minimum bid amount required to start the bidding and a minimum increase requirement. For example, there is a gift card with a $100 minimum bid requirement and a $10 minimum increase requirement. That means if someone bids $110, the next bid would have to be $120. Silent auction items may also have designated increments in which the bids increase by – $5, $10, $20, $50, $100, $500, $1,000, etc.
Silent auctions used to be exclusively in-person events as part of a fundraiser or company dinner or conference. With the growth of online auctions and the related technology needed to hold such events, silent auctions can also be conducted using online entries via a website or mobile app.
When planned and properly executed – silent auctions do require a bit more effort than a traditional live in-person or online auction – silent auctions are an effective way to raise money for a nonprofit organization or charity.
Although silent auctions can be held in a formal setting in the sense of attire, these events are more informal than traditional auctions. Silent auctions aren’t the sole reason for an event, rather they are simply a part of a larger fundraising initiative. Because of this, silent auctions tend to be more inviting for people who prefer a more casual environment of bidding compared to the high-speed nature of live auctions.
Aside from the prospects, silent auctions are social events that serve a dual purpose – they help the community or charity they’re serving and they’re fun to organize, plan and attend.
Ultimately, there are many factors that will determine if your silent auction is successful. For starters, you’ll need one of two things – many guests to bid on your items or high-ticket items that bring in top dollar.
You’ll also need to determine your demographics. Ask yourself the following questions:
There are many ways to conduct a silent auction. For starters, here are some general rules to follow for a successful event.
Unlike a live auction that only lasts as long as the bidding occurs (sometimes only a matter of seconds), silent auctions have a specific viewing and closing time.
A closing time simply designates when the last time is to place a bid. For example, an event that starts at 5 p.m. can have a closing time of 7 p.m. prior to dinner being served. This gives attendees two hours to place their silent bids. In addition to creating a cutoff time, it also encourages a sense of urgency.
Having too many items won’t create enough competition, while too few items may not generate enough interest among guests. When planning a silent auction, try to have at least one item available per guest and no more than two.
Depending on the value of your items, choose increment values for which your attendees can increase bids by. Low-ticket items can increase by as little as $5 per bid, while high-priced items should have a bid increase minimum of $100.
A good item description can be the deciding factor on if or how much a guest decides to silently bid. Make sure every item has a detailed description that answers any potential questions. For non-tangible items, such as a vacation or hotel, consider providing photos to allow bidders to visualize what they can win.
Every auction needs a way to bid. For live auctions, that involves raising your hand or a bid card. For silent auctions, a bid sheet allows you to write down how much you’re bidding. A bid sheet includes the item name, a minimum bid amount and a minimum increase requirement.
Bid sheets also include a space for bidders to place their bid number and bid amount. Unsure of how much to start with? Starting bids can begin at 40% of market value for that particular item. A 10% minimum increase requirement is also acceptable each time someone places a new bid.
Some bid sheets may include a “buy now” price, which allows a bidder to purchase an item outright for a high cost.
For decades, we have assisted many local organizations with benefit auctions. From the Fellowship of Christian Athletes to the Oklahoma City Arts Council, our professional services help non-profits, schools and organizations maximize donation possibilities.
Contact us today or call (405) 458-1645 to learn more about how Dakil can help your organization with a benefit auction. Additionally, visit our upcoming auctions page to keep track of our monthly events.
