Do you know your auction bidders?

Do you know your auction bidders?

Group of Diverse People Holding Auction

This happens quite often: An organizer from an event attends another event and sees an item bring a large amount of money in the auction. This organizer decides to mimic the item and when it is offered at his/her own auction it sells for substantially less money. Undoubtedly you ask yourself, why?

There are a number of reasons this can happen. Ultimately, the answer is simple – It is important to know the types of items your guests really want and their ability to buy them. 

Understanding the mindset of your guests is one key. If you’re event is host to very pragmatic, conservative guests then you probably need to sell practical, functional items. You may have bidders that think, “I’m going to spend the money anyway, let’s spend it to support XYZ.” If that’s the case, remodel packages and landscaping packages may be your best items. Think tangible items that can be traded for value. If your guests are flamboyant, excitable people you’ll need items to stimulate their senses. A progressive dinner hosted by the chair of your event could be a great option. If you’re guests are charismatic and spend freely an amazing dinner with a local celebrity or an all access pass to a concert may be more interesting to them than a new snow blower.

It is also important to recognize the ability of your guests to spend.  Some events don’t match their items to their bidders. It isn’t uncommon to have a $2,000 item in an auction with the most well intentioned bidders, but they just can’t spend that much. Maybe their wallets only allow for $1,000. Knowing the ability of your bidders to spend will also help you plan your live auction items. Understanding this element allows you to recognize that it may be best to have two $800 items instead of one $1,600 item. It can make for a more enjoyable night for everyone.

Finally, marketing comes into play. If you have a rare or unique item it would make sense to get information out to potential bidders prior to the night of your event. It is so simple and free to do with Facebook and email. With that being said, if you have items that are really rare or only appeal to a limited number of people it may be advantageous to run an ad in a newspaper and accept absentee bids.

Group of Diverse People Holding Auction

Group of Diverse People Holding Auction