Success in auction-based fundraising is all about selecting the right auction items, but event organizers sometimes pick items that are "frankly, too expensive,” says Keith McLane, Founder and Lead Auctioneer at KLM Auctions.
Rather than auctioning a single high-value consignment package for little or no profit, event organizers often find it more effective to sell a lower-cost consignment package well above its cost.
“If we sell something that costs $5,000. . . for $5,500 at your event, it’s not the end of the world, but nobody’s excited about that,” says McLane.
Rather than the organization keeping only $500 in this hypothetical, McLane says it’s often better to offer, for example, a package which costs the organization closer to $1000 which can realistically be sold for $2000 or more. This allows the organization to keep a greater percent of the sales price for themselves and net more than they would’ve had they sold a more expensive package closer to the asking price.
Additionally, says McLane, the excitement and profitability of the right consignment items comes from the ability to sell them to multiple different winners. Such items ultimately bring in more net profit to the organization than a pricier, single-use item ever could. “If you take $26,000 out of your room but you get to keep $13,000, most of my clients would get pretty excited about that,” says McLane.
This clip is from Episode 1 of KLM Auctions’ new video podcast Friends with Benefit Auctions, featuring an expert conversation with Taylor Beveridge, Director of Philanthropy at Carlsbad Education Foundation, Kristi Maryman, Senior Manager at the Sacramento SPCA, and Rachel Schmidt, the Director of Marketing at English in Action. Watch the full interview:
KLM Auctions’ Youtube Channel: https://www.youtube.com/@KLMAuctions
Spotify: https://open.spotify.com/episode/0riOVM38ByDgHkgbNhTrGE?si=394cd9c8ebc84bbd
Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-mood-momentum-and-making-money-how-to-host/id1790346707?i=1000683873176
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Hosted by KLM Auctions Founder and Lead Auctioneer Keith McLane, “Friends With Benefit Auctions” is a new video-podcast featuring conversations with experts in the nonprofit development, educational, fundraising, and live event spaces from around the country, talking all things auction, benefit fundraising and live charity events. This dynamic series explores insider tips, tricks, and juicy details regarding the exciting benefit auction and professional fundraising space, and what it takes to make an event really pop.
KLM Auctions is the nation’s premier provider of event-based fundraising advisory services and professional charity/benefit auctioneers. Get in touch with us about your next electric fundraising event here: https://www.klmauctions.com/contact-us
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