Monday, April 13, 2009

Jack Young and David Sobon in Seattle at Benefit Auctioneer Specialist training with Kip Toner. The was course was pioneered by Kip and the National Auctioneer's Association and is designed to teach the planning techniques that create successful benefit auctions. Jack has been working with Kip since 2002.
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Saturday, February 28, 2009

OH no ... there are fewer people at my auction

Fewer people at the auction often means a greater concentration of more competitive bidders. Again, last night the fund an item and auction add ons saved the day.

Friday, February 27, 2009

Acquisition Rally and Audience Development

A successful auction occurs when many things come together at the same place and at the same time. Two of these items are the right auction items and the right bidders. This package provides information to help your auction achieve that combination. Time and effort, combined with this information, can ensure that your auction will provide a venue in which auction items and bidders interact effectively, one in which attendees take auction items home, having donated the amount of money that they intended to. If you have any questions please feel free to call me up until 9:00 at night or email me.
Acquisition Rally
Great auction items are part of what make a great auction. Here are some tips to make this happen.
Work in teams. Small groups, targeting special types of items, provide added focus and creativity that can produce great results. Add some fun to the acquisition process by having competitions between teams— with prizes. Group activities can include hitting one area of town, phone banking or brain storming sessions.
Have a system for receiving and securing items with all the necessary info required…such as locked out travel dates for travel items. Try to make a live or silent auction determination when the item is received. Jack will review these items about six weeks prior to your auction.
Newsletters or other tools for communication are used by some organizations to keep excitement up. Excitement is contagious and the success of one team or individual can motivate and inspire the creativity of others.
Variety: Auctions work on the principle of scarcity. Too much of anything will kill any great idea.
A catalog that is sent out before the auction and posted on the event website gives additional leverage in soliciting donations. Prospects are more likely to help when they will receive extra publicity.
Ad space in the catalog allows merchants who don’t have viable auction items to support the event by placing an ad. Tax services are a good example here. Also, individuals may want to put a personal message in the catalog such as:
Acquire items from these 2 main categories for a successful auction:
(see attached pages for listing of ideas)
Practical Items: These include wine, home entertainment systems, laptops, etc.
Experience based Items: Consider such items as BBQ for 25 at any location, cooking class and dinner in your home with a well-known chef, sports lesson from a known athlete, and entertainment packages. The creativity of the auction committee can put together packages that will be unique to your auction and cannot be obtained anywhere else.
Give something yourself. This is an important levering point when asking others for donations. One fun way to do this is the Instant Wine Cellar: each board member brings a bottle of wine (valued at >$15.00) to each Board meeting. By the auction date, this Wine Cellar shows bidders the Board’s commitment.


Ask your spouse, friends and family. Even if they don’t have anything to contribute, they often will have a good idea or a good contact. Use this technique for audience development as well.
Get out the checkbooks. Examine the checkbooks, yours, the organization’s and key sponsors. Ask for donations from businesses that you and the organization support during the year through business dealings. Use this technique for audience development as well.
Pull in a favor. Think of people you have supported at their fundraisers and ask them to support yours. Use this technique for audience development as well.
Work towards the Catalog deadline. Making a few contacts each week is much more effective than waiting until right before a deadline.
Stress the purpose of the auction. Make sure people understand the organization’s mission. Use the word “HELP” often, and specify the people who will be helped if possible. “I’m calling to see if you could HELP the children that XZY non-profit supports.”
No cold calls. It is as simple as that. Warm up a prospect before going for the ask. A live ask is best; the telephone is the next best, and the telephone is better than a letter.
Specify what you are asking for. Help out the merchant by showing them how you envision their auction item working within the whole auction. Make the effort to do the creative work to make it easy for the merchant to contribute.
Many low dollar activities add excitement, fun and revenues. A 50/50 raffle where ½ of the proceeds are given away immediately before the live auction can increase live auction bidding. Sell Balloons with gift $50.00 certificates in them sold for $20.00. Have a few balloons with $100.00 gift certificates. The Pot of Gold can be circulated during the reception and donations (cash and hand written services) can be made to it and then it is auctioned off at the beginning of the live auction.
In many cases, asking for a year’s supply of something works well: i.e., a year of theatre passes, Queen for a year, coffee for a year, a year of oil changes, etc. It is important to explain to the merchant that one use is not enough to win a new client over but that a year’s supply is; an additional benefit for the merchant is that many extras can be sold to the customer during that year as well.
The best consignment items are highly unique and sought after (hot to market) such as the Air Combat USA and the South Africa Photo Safari that Jack Young can provide you with. The organization needs to make a conscious decision about whether they are willing to accept consignment items. If so, beware of any items you have to buy in advance or pay too much for and of items that may be stale inventory a merchant is trying to get rid of. Also beware of auctioning consigned new cars. Cars absorb too much bidding money, with very little of it actually benefiting the cause. An automotive 2-year lease is much different and actually creates more proceeds.
Used items, with very few exceptions, should not be offered at your benefit auction. Among these exceptions are rare collector items such as baseball cards or clean, highly desirable used cars such as a Cooper Mini or ’66 Mustang.
Centerpieces created for gala events are usually beautiful and functional. These items often make excellent silent auction items. Jack Young can provide these to you for a reasonable cost.
Reserves and minimum bids on donated items are highly discouraged. It is your auction and in most cases you are better off not letting the donors direct your operation.

Attendance Development Session
Getting the right people at the auction—people who will bid actively—is often one of the biggest challenges facing an auction. The trick is to make your event an important social occasion. Here are some techniques to help that happen:
 Send out a save-the-date mailer that mentions an important honored guest(s). An important decision-maker or politician at your event attracts others who may want to be seen at the same event, doing social good. (Jack will announce the name of the winning bidder after each item is sold.) Other types of honored guest could be a well-known artist, athlete, writer, etc.
 Who are the businesses that want to be seen doing good works in front of your audience. i.e. if you area school make sure the local dentist and orthodontist support your event. If you have a construction project, make sure that the construction company and sub-contractors are present and actively bidding.
 Get a title sponsor with high level visibility that can promote your event to their constituency and their vendors.
 Have your auction the same relative date every year, i.e., the first Saturday after Thanksgiving. This way people will anticipate and plan for it.
 Have your catalog viewable by the public on the Web. This could give fence sitters a little nudge to come to the event or at least put in a pre-bid.
 Get key supporters to sign on as table captains. Table captains agree to fill a table with people they feel will be good bidders.
 As with acquisitions, open up the checkbooks, pull in personal favors and ask friends and family.
 Obtain the Business Journal’s annual listing of major corporations in town. This issue usually lists the members of the board of directors for major companies in the area. Assign various people to personally call these people and ask them to HELP. Explain about the organization and what it means to the community.
 Provide unique auction items that are rare and have great value.
 Displays announcing the event on tabletops in key restaurants.

Pre-Selling: RSVPs and Other Considerations
 Auction catalogs sent out ahead of time—with instructions to “circle the items that you want to bid on”—tend to increase bidding.
 The Pre-bid system allows people who cannot attend the event to bid on items using the catalog. An absent bidder fills out the form and a volunteer from the organization bids for the person at the event. A fee is frequently charged for this service since the bidder is not paying to attend the event.
RSVPs are important for many reasons. One reason is that attendees who pay in advance for their tickets are more likely to “forget” that expense by the night of the auction and so not consider it when they determine their bidding budget. On the other hand, attendees who buy tickets the evening of the auction tend to subtract that expense from their bidding allotment.
 Pre-pay discount programs motivate people to RSVP.
 Auction script can encourage RSVPs while also promoting higher bidding. A person who RSVPs, for example, may be entitled to purchase $50.00 of nonrefundable auction script for $40.00. Script is transferable, but often not all auction script is redeemed, creating instant proceeds for the cause.

Works consulted: Kip Toner Benefit Auction Fundraising Auction Manual (Kip Toner, ©2000 KTBA, Inc.)
Going … Going … Gone! (Anne Connelly & Maureen Winter, ©1993 Target Funding Group, Inc.)

Other acquisition ides:
 Items off the KTBA trip list
 Drive a CAT D9 to demolish a building
 Vacation homes- Tahoe, Coast
 Airplane trip to the coast for 2 with lunch
 Sailing on the Bay
 Ferris Bueller's Day Off
 Airline miles and vouchers
 Queen for a year
 Homemade bread for a year
 Reserved seating at high school football games
 Bedtime stories read at home by the kindergarten teacher
 Lunch with mayor, district representative, senator or supervisor
 Orthodontia, teeth whitening
 Reserved parking place
 Doll houses built by local contractor
 Southern CA or Las Vegas trip
 2-year car lease (brings qualified buyer to dealership to purchase car after the lease is over)
 Dinner for 10 in a unique public place or prestigious person’s house
 Dinners and theatre for a year
 BBQ for group with local entertainment talent
 Entertainment talent at a party
 Cooking class for a large group and dinner in your home with a well known chef
 Videotaped sports lesson, game of catch, etc. with a known athlete.
 Watching the World Cup with a known soccer coach
 Dinner out with a celebrity, author, poet, musician, coach or other known person.
 Ride with a police canine unit
 Child gets driven to school in a fire truck
 Horse drawn tour of wine country
 Napa Wine tour in an RV

Monday, February 16, 2009

Volunteer retention

As mentioned previously, levering volunteers effectively depends first on recruiting and directing volunteers, and—just as importantly—on keeping those volunteers energized and committed. Here are some tips to reduce volunteer stress and improve volunteer retention.

1. Keep things fun. When a cycle of excitement starts taking effect it feeds on itself and you will get quality volunteers.. The reverse is true when people start getting burnt out and jumping ship. Make sure to schedule a volunteer appreciation party NOW for a date after the auction.

2. Use the auction planning guide and stick to it to smooth out the work and avoid unexpected tasks and crisis management.

3. Look over your past auction results. Don’t go after any silent auction items with less than a 50% yield or live auction items with less than a 65% yield as this is wasted effort with little return. Have a maximum of 1 auction item for every 2 guests.

4. Incomplete data on the acquisition forms. Usually missing values which are required by the IRS. Have a common place to receive these forms and an assigned person to pick these up and review them regularly and get the missing info. Otherwise the person preparing the catalog has incomplete data to deal with…poor descriptions etc. Keep the data clean and regularly input into Maximum Benefit Auctions’ excel spreadsheet. Don’t wait to the last minute to input data.

5. Assign tracking number to each item that comes in and physically affix those numbers on the items. This is different from the auction item number that will be assigned later.

6. Break silent auction sections into 3 categories based upon value. (These sections will be designated by color balloons at the event…i.e. red area = red balloons, green area = green balloons, etc) Do NOT break down the categories based upon types of merchandise. This is a waste of time and effort resulting in reduced proceeds.

7. Spend most of your catalog space on your live auction items. No fancy names and detailed descriptions are needed for the silent auction areas. Just a listing by

8. Assign only one bidder number per couple. When selling tickets get the guests’ information: name and address, phone number so that bidder packets can easily be prepared and ready for arriving guests. Maximum Benefit Auctions provide bidder cards and registration forms.

9. Keep decorations simple. Prepare silent auction tables in this manner. Lay down table clothe, place bid forms 1 foot apart, lay down the display items relevant to each silent auction item, lay down pens … lastly …. Decorate. If needed.

10. Close all silent auction sections before the live auction starts. Do not do the fund-an-item any later than ~ 2/3rd of the way through the live auction. Have live auction runners that are on the ball and getting the forms to the auction cashiers right after each item is sold.

11. Do NOT allow people to pay or pick-up their items until the live auction is over. This is the general policy … of course exceptions can be made but this is critical or else your payment / pick-up process can be a disaster.

12. Use Auctionpay event payment terminals

13. Use good signage Registration, Items pick-up, cashiering.

Good luck,
Maximum Benefit Auctions
Maximum Giving - Maximum Fun!

Tuesday, February 10, 2009

Benefit Auction Facility Space Planning

Clients often come to us wanting to know how big a facility they will need for their event. The size needed for any particular auction depends upon a number of related items that I will attempt to summarize below.

The basic rule of thumb is that each person AND each silent item requires 10 square feet of space. The guest’s 10 square feet will be in the dining/auction area; the silent item’s 10 square feet will be in the silent auction area.

For example, let’s assume a gala event with 300 people. Using the basic rule of thumb, we know that the dining/auction area for this event will need to be, roughly, 3000 square feet in order to comfortably accommodate all your guests. What do those accommodations look like? A 60" round table with 10 chairs will fit perfectly inside a 10' X 10' square, or 100 square feet. Since 10 people will fit around that table, in 100 square feet, and we have 300 people, the event will need 30 tables, each in their 10’ X 10’ square. Remember that these numbers are not absolute—you can actually nest the table a little tighter if you wish or need to.

Let’s continue into the silent auction area, using this same event as an example.

For the silent auction we advise that you have a MAXIMUM of 1 item per 2 guests, so for 300 guests, you would have 150 silent auction items MAXIMUM. Each of those silent auction items will need 10 square feet—a total of 1500 square feet. Why does each item need so much space? Basically, each silent item should have 1 square foot of table space with 9 square feet in front of the item for bidding & bidder traffic. To spell it out: 150 silent items will need 150 linear feet of table, depending on the size of your items. (These requirements may increase if you have many large items like framed art.) Using both side of ten (10) 8' tables provides over 150' (8’ x 2 x 10 = 160’) which would probably be enough. If you have two silent item tables facing each other, you need 7.5' for each table, or 15' total.

If you are a different number of items from this example you can do the math a slightly different way. For a reception you need about 7 square feet per person plus about one square foot per item.

These calculations do not include room for the bar, registration or an item pick-up area.

Depending on your crowd, 300 people will usually require 2 bars. Each bar will take up about 150 square feet for the actual bar and a place for people to line up in front of the bar.

Registration personnel 1 per 75 guests and 3’ of table space for each registration person plus an equal about of table space behind the main registration table with a 5 foot walk way in between. This roughly winds up working out to about 1/2 square foot per guest for registration plus an area to stand in line.

Often a part of the silent auction area can be used for an orderly item pick-up. This area usually takes about 1.5 square feet per item. So 150 + 20 (assumed live auction) = 170 x 1.5 = 255 square feet


Here is the example summarized:

Guests =300 Silent Items = 150

Dinning 300 x 10 square feet = 3000 square feet
Silent Auction 150 x 10 square feet = 1500 square feet
Bars 2 x 150 square feet= 300 square feet
Registration / Cashiering 150 square feet
Pick-up (assumed to be in silent auction are)
Minimum Required Space (rounded) 5000 square feet


This formula will usually provide enough room for Live Auction item display.

Notice that we did not allow space for a buffet since they have a detrimental effect on auctions.

Attendance:
Generally you need to invite 60% more people to the event than you need to attend. For this example you want 300 people at your event you invite 480 = 300 x 1.6.

Operational costs generally run between 25% and 50%

Yields: Silent Auction >50% Live Auction >67%

Average auction proceeds per attendee nationwide ~$165

Other critical factors are:
▬ What time the venue closes for the night
▬ The quality of the sound in the room (both sound system and acoustics). Rarely are in-house systems adequate.

Maximum giving - Maximum fun!
Maximum Benefit Auctions

Sunday, February 8, 2009

possibilities

We were at an awards banquet event last night that could easily add a benefit auction to their program. In doing so they would add excitement to the event and give the attendees another opportunity to help the important work that the organization does.

Many events are like this. As professional benefit auctioneers we are masters at integrating a fund raising auction into an existing event and in doing so making the event more enjoyable for the guests.

Maximum giving - Maximum fun!
www.maximumgiving.com