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The Gala411: ALL Benefit Auction Solutions
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Blogs -
The Gala411: ALL Benefit Auction Solutions
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Written by GALA GAL Jenelle
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Saturday, 24 April 2010 18:13 |
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Greetings, Auctioneers! I'd like to hear how you handle items with a reserve in a benefit auction. Two issues often come up: what to disclose to the bidders, and what could be the negative consequences if you don't. I just ran across this Q & A in the March "Auctioneer" magazine. Perhaps some of you have already seen it, The question does not address benefit auctions, but it brings up a good point: What are the ethics involved with bidding up to a reserve on behalf of the seller, and what are the auctioneer's responsibilities to disclose to and be fair to the bidders? I'm particularly interested in your thoughts about the last 2 paragraphs of the answer, which touches on "ghost bidding". (quoting from the article), "The auctioneer's (up to reserve) bid was not made with the intent to purchase [the property]. Instead the auctioneer's bid was made to entice the bidder to make a bid ...against their own bid...This practice would be dishonest and against fair dealing with respect to the bidders [if not disclosed]." So, my question to you all is, how do YOU handle this? Yes, of course, check your state regulations, but I've heard auctioneers bend the rules when it comes to non-profits. More than once I've heard from an auctioneer, "It's OK to run up the bids because it's for charity." What do you think? Is it? In my business model, I have always encouraged charities to auction only 100% donations, and work with clients over several months to help them do so. In my opinion, I want all available dollars in the room to end up in the charity's pocket, not paying some outside company for a (likely overvalued, overpriced) item or experience. Yes, there is a place for consignment items, but the organization does have to consider that when they sell that consigned sports jersey for $2400 and only keep $400, then there goes $2000 that bidder could have given directly to the charity via donation or by bidding on (or even back-bidding on) items which were 100% donated. And what's even more potentially hazardous is when the bidder THOUGHT the money was going to the organization and later finds out just how little the charity kept. That could be a public relations disaster, or it could just upset one good donor. Either way, I remind charities that they only have one reputation, so erring on the side of full disclosure is likely to be the safer bet. That being said, how should non-profits incorporate items with a reserve, whether that reserve is set by the artist, donor, or required due to a pay-back cost? My recommendations to clients: Whether the item has a reserve but not a cost,( i.e. the artist wants to save face and thus doesn't want to let this $3000 oil painting go for less than the $1800 in sells for in his gallery down the street)or if it's a typical sell-now-pay-later-consignment trip, then there must be a written, signed plan in place for what to do if the bidding does not reach the reserve requested or the cost+Profit Margin price. Here are the options: 1. Disclose in the catalog or printed materials that the item has a reserve or cost of $xxxx and that proceeds above $xxxx benefit the organization. 2. If the bidding stalls, explain over the mic that the item has a reserve or cost 3. What if the item reaches $1750??? The auctioneer should be able to look to a pre-designated person (the artist, the auction chair) who could authorize the on-the-spot decision to take the $1750 bid rather than lose the sale. This must be figured out ahead of time! 4. Pass the item, saying, "Come see me if you're still on the fence..." 5. "Sell" the item to a Board member, to the wall, to a ghost....which, of course, is where the "Is that legal or ethical" discussion comes in. If, as the auctioneer, you are not actually selling it, then do you actually say, "SOLD"? Is that ethical? Some auctioneers say that they do this to "preserve/protect the auction", but I prefer full transparency and always choose to pass the item. Some auctioneers say that the Board member is "retaining possession of that item", but I disagree. This is a touchy subject among auctioneers, and I don't think we all handle it the same way. When counseling non-profits about whether or not to include consignment items, encourage them to weigh the pros and cons: 1. Consignment can be a good addition to your auction(s) IF there will be a surplus of dollars in the room; more people willing to give money than the donated auction items can generate. 2. The non-profit has to clearly "Do The Math". What's the actual cost for the item or trip, AND, will it negatively affect the rest of the auction or donation portions if those paid-to-an-outside-provider dollars will never benefit them? How much profit beyond the cost must be made in order to make it worthwhile to lose those extra dollars? For instance, if a trip to Italy has a cost point of $4500, then how much does the charity need to make so that it's OK those $4500 will be lost to them? Is it $1000 profit? $2000? And once the Cannot-sell-below price is established in advance, is the charity clear on the auctioneer's options to handle such a sale? Do they know if the auctioneer will start way below the cost point, and if so, ARE they ghost bidding if real bids on the floor stall? If a Board member bids KNOWING that he/she has no intent to buy the item, isn't that shill bidding? Do they want the auctioneer instead to say, "Folks, we can't let this trip go for less than $5500..." The final paragraph in the article referenced above talks about the uncomfortable situation an auctioneer can get caught in if a bidder asks for the back bidder to be revealed and finds out THEN that it's the auctioneer. (quoting the article), "The Auctioneer should generally indicate in some manner that he or she is making the bid...to prevent the appearance of unethical or dishonest conduct." I don't deal with a lot of consignment items, and I've worked out a way to be comfortable with these issues. What about you? How do you as the consultant and on-stage auctioneer handle items with costs or reserves? See you at the auction, Jenelle
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Last Updated on Saturday, 24 April 2010 18:20 |
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Blogs -
The Gala411: ALL Benefit Auction Solutions
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Written by GALA GAL Jenelle
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Sunday, 11 April 2010 17:41 |
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Welcome back to The Auctioneer Channel's Benefit Auction blog! What's the GALA 411 for this week, you ask? QUESTION: Everyone keeps asking me if I am funny!! I think I am but I am not sure if they will be expecting me to actually tell jokes? I figure I should have a couple in my pocket if I need to fill time, so any ideas? Well today I got this question from a nearby Florida auctioneer. Below I've offered 4 tips on how to be the best entertainer and ambassador for your non-profits, and I'd love to hear feedback from each of you readers as well. Please add your comments to this blog, or post them on my Facebook, GALA GAL Jenelle, so that we can gather what works from hundreds of working auctioneers. Oh, and let's do this right away, because the auctioneer who asked wants to be funnier by this Saturday! Readers, please add to our discussion and our joint pool of money-raising techniques: What "filler phrases" do you use during a Benefit Auction (or during any auction but which are appropriate to a fundraiser's tone and audience)? What funny phrases have you heard others use to warm up a crowd that's unfamiliar with auctions or unsure, uncomfortable, or unengaged? How should you (or how DO you) change your chant speed, rate of sale, clarity, tone, style, item descriptions,etc. when auctioning to a crowd that is drinking, distracted, or intimidated by auctions? What should the auctioneer NEVER do during a Benefit Auction chant or performance? My 4 Recommendations: When clients ask you to quote-unquote "be funny", what they really want is for you to connect with their audience during the money-raising time so that guests will give more money to the cause. To connect with an audience during a Benefit Auction, it helps to be entertaining! To be entertaining during a Benefit Auction, there are ways to engage the audience, learn phrases to add which relax the audience, and ways to adapt your delivery to suit an audience who never attend auctions. I can suggest 4 things: 1) Be yourself, so don't try to forcibly tell a joke if that's not your natural style as a public speaker. If you want to become a more polished or dynamic public speaker easily, consider joining your local Toastmasters. For less than $2 a week you can hang out in a safe, supportive environment and work at your own pace through a series of simple exercises to practice and polish your public speaking. AND, Toastmasters is a terrific place to network. You may be suprised at just WHO Toastmaster members are: A profile of Toastmasters members
- 52% of members are female and 48% are male.
- Average annual household income: $85,000-$99,000.
- 30% earn $100,000+ annually.
- 69% of members are between the ages of 35 and 49.
- 82% have a college degree.
(source: www.Toastmasters.org, Member Demographics) There are more than 12,000 clubs in 106 countries, and more info can be found here: http://www.toastmasters.org/MainMenuCategories/WhatisToastmasters.aspx 2) Collect a list of clever or funny auctioneer filler phrases to slow down the speed of your selling and soften up the audience. There was an article on filler phrases in the June 2005 issue of NAA's "Auctioneer" magazine. You can check the NAA Member Forum for blog posts on filler phrases too. Here are some frequent favorites; practice to add a few which suit your style and the tone of the particular Benefit Auction event. ~It's only money; you'll make more (there's more where that came from; use it or lose it; you can't take it with you) ~It's like tennis: it's your turn ~It only hurts for a second, I promise ~You can trust me; I'm an auctioneer ~You owned it for a moment; don't let him steal it away from you ~bid again, because if you're not a winner you're a.........non-winner ~Bid again, I think I would (while nodding up and down) ~If you'll bid $ ______ you'll be my new best friend ~Statistics have shown that frequent bidding at an auction makes you (sexier, smarter, more attractive to the opposite sex, admired by your peers, happier in heaven, etc.) ~It's worth $__________, all I gotta do is get it there ~It's only $25 more; can anyone loan this table $25? ~This is the item you'll remember when you wake up tomorrow saying, "I shoulda bid..." ~She wants this sir, doesn't she deserve it? ~You look like a wise man, sir, and a wise man would bid again here...(A wise buyer would, a savvy man would) 3) Remind the bidders about the reason for the auction; be an ambassador, reinforcing the mission, where the money goes, how their dollars make a difference, how many dollars it costs to deliver this service or provide for one family, etc. You can get a page of such "talking points" from the non-profit in advance. 4) Learn and use crowd-control techniques, including sound effects (before, during and after each sale), asking for clapping or celebrating from those not actively bidding, dividing the room into teams, having appropriately trained ringmen, and getting physically closer to the bidders instead of far away behind a podium So what do you think readers? What can YOU suggest to a fellow auctioneer about how to be funnier by Saturday? We look forward to your comments! Until next time, see you at the auction. GALA GAL Jenelle
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Last Updated on Monday, 12 April 2010 00:35 |
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Blogs -
The Gala411: ALL Benefit Auction Solutions
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Written by GALA GAL Jenelle
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Monday, 29 March 2010 21:49 |
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Today's question came from one of my clients: Should they add some consignment (cost) trips to their auction this year? Background: I've worked with this Orlando non-profit for the last 7 years. They are a small group, and their spring fundraiser has a history of about $25,000 in combined silent and live auction proceeds, all from pure donations. Historically, their average Live Auction sale is about $700-900, which isn't much in the fundraising world. Their event only gets about $25,000 in corporate sponsorships, about 200 attendees, and tickets are less than $75. It is also an afternoon rather than evening event, which also affects how freely guests will spend. Here is my reply: Consignment is not an easy fix for small organizations, since it does take dollars out of the crowd which then don't go to you as the recipient. It is only beneficial when bidders are willing to pay $800-$1000 more than the cost point for any consigned (i. e. cost-required) experience.
Trips (and other consignment items of all kinds) work for non-profits when there are a lot of big spenders in the room and the organization doesn't have enough expensive auction items to flush out all the money!
In my past experiences with this auction, finding ways for numerous big spenders to distribute their thousands of available dollars hasn't been the biggest issue; the biggest issue has been getting those in attendance to spend reasonable dollars even on 100% donated items (which are, in effect, simply vehicles to accept monetary donations direct to the cause).
Do we have reason to believe that we have a new crop of big spenders coming? Or do we have Board or committee members who have stated that they will buy a particular Napa Valley or other such trip offered by the consignor?
These are the critical points to consider when thinking about paid-for auction items.
Perhaps you want to convey these considerations to the Board, and I'll be happy to work with you and pick out the most appropriate consignment-priced opportunities if the Board supports that direction! I hope this helps all of you to navigate the challenging concept of "magical" consignment items for auctions! See you at the auction, Jenelle, the GALA GAL
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Last Updated on Monday, 12 April 2010 02:22 |
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Blogs -
The Gala411: ALL Benefit Auction Solutions
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Written by GALA GAL Jenelle
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Tuesday, 09 March 2010 05:03 |
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Here's this week's 411 on Fundraising: Have you had this happen to you? The non-profit sold corporate tables (tickets in groups of 8 or 10) but then never got the names of the supposed attendees confirmed, and so some (or, horrors, ALL) of the seats at a prime table up front at your auction are empty? Not only does this look terrible for the event organizers, but it wastes valuable real estate where auction bidders could be closer to the stage, and to you as the auctioneer. Because the charity only has "one night, once a year" to maximize the money and exposure they receive during this event, any empty seat is a lost opportunity for both them and you. So, how do you counsel the non-profit in ways to solve this common problem? One of my clients asked me that this week, and I suggested adding the text below to their sponsorship agreements. This politely establishes a clear deadline for confirming attendees and clearly explains the consequences for not doing so. In the final week, then, the non-profit can fill any unclaimed seats with community leaders they wish to woo, media personnel who'll add exposure, or even to deserving recipients who could not afford the ticket price. Want a full house of bidders at your auctions? Help your clients help themselves! See you at the auction, GALA GAL Sample text to add to the Table Sponsorship confirmation letter and all follow-up communications: Thank you so much for supporting our event by purchasing your table(s) for our [date] [event]. As this opportunity for "friendraising" and fundraising occurs only one night per year, we are committed to filling every seat at every table to ensure a full house. If you have available seats at your purchased table(s), we ask you to consider increasing the net value of your donation by offering unused seats back to the [event] Committee in order to allow other supporters to attend. Please note that the names of all your table attendees must be confirmed by the Monday prior to the event. Beginning on the Tuesday prior to the event, the [event] Committee reserves the right to either resell unconfirmed seats at all tables or otherwise assign unconfirmed seats to charity fund recipients, members of the press or dignitaries. We thank you for understanding the necessity of accurate attendee numbers for dining details and accurate names for swift on-site registration. We look forward to receiving the names of all of your desired guests on or before Monday, [date].
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Last Updated on Monday, 12 April 2010 02:22 |
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Blogs -
The Gala411: ALL Benefit Auction Solutions
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Written by GALA GAL Jenelle
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Tuesday, 16 February 2010 09:55 |
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Welcome back! It's mid-February. How are you doing on your 2010 goals so far? Have you researched the 20 prospects you said you'd find? Called or e-mailed them yet? Set up (or even held) any in-person meetings with these new prospects yet? Or are you one of those folks who didn't even get around to setting an actual numerical goal, something that could be evaluated, measured, quantified? If you started 2010 saying, "This year we should do more benefit auctions," and yet you haven't made a 10-day, 30-day, 90-day, 6-month, 1-year and 3-year plan, then at the end of 2010 your "we should" may end up as a "we should have" regret. Where will you be at the end of this spring fundraising season, or at the end of the year, if you DON'T actually take the time to make a strategy, what's known as a "strategic business plan" for success? If you don't have a clue how to do this, or you think you don't have time, or you could make the time but you don't have the discipline (!), then continuing education is for you! You've got lots of options: 1. A friend in my Mastermind group this morning mentioned that he'd discovered a sales term he wanted to know more about (personality selling) and so he'd immediately ordered all the books on Amazon on that topic! (continuing education) 2. Take a course, almost any course! This weekend I start facilitating a 13-week financial course, Dave Ramsey's "Financial Peace University". When I took it last fall, it was so well delivered and insightful about all money matters, I knew I wanted others to experience the program too. (Plus, I'm looking forward to seeing it again.) 3. Join a club. Recently two auctioneer friends in Colorado attended their first Toastmaster meetings. One has now joined a club; hopefully the second lady will join too! Toastmasters, the world's largest public speaking organization, is the safest place to fail! Everyone in the room is there by choice, gradually making friends and gradually becoming better speakers. Toastmasters is a go-at-your-own-pace program, with no scoring or intimidation, just support. Whether your palms sweat when talking to strangers or you're used to cracking up crowds of 500, every Toastmaster member practices and polishes whatever skills she/he has on Day One. 4. Look for continuing education courses specifically on Benefit Auctions. The July NAA Conference is not that far off, so set aside the time and money now to sit in some education sessions or take a multi-day course. There is also a Benefit Auction Summit coming up this September 20-21st, so mark your calendars now. And ask me if you would like to interrogate anyone who's been through my BOOTCAMP for Benefit Auctioneers program. Whatever you prefer, just DO something. Today, right now, jot down in the margin of your desk calendar how many outgoing Benefit Auction prospecting calls you will make by February 28th. Just one? That's okay, it's more than you've done so far, right? How about 5? Could you do 9? That's just one inquiry squeezed into each work day. Can't squeeze in that extra 5 minutes to make a Benefit Auction prospecting call? Hmmm, then maybe you should think about getting around to that strategic planning! Happy (shortened) week! Jenelle
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Last Updated on Monday, 12 April 2010 02:23 |
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