How to Set a Silent Auction Minimum Bid

Part of organizing a silent auction includes setting the minimum bid on the items displayed to prospective bidders. When you set a bid, you need some basic pricing information about the item so you can determine a fair amount for the minimum bid. If you set a fair bidding amount, it will likely encourage more auction attendees to participate, which will help the auction be successful.

Things You'll Need

• Fair market value of auction items
• Calculator

Instructions

1. Determine the fair market value (FMV) of the item. For instance, if the item is donated by an artist, inquire what price he would ask for the item. If a restaurant or retailer donates a gift certificate, the FMV would be the face value of the certificate.

2. Set the minimum bid at a price that is anywhere from 25 percent to 50 percent of the FMV. For example, if you have a diamond bracelet that retails for $1,000, set the minimum bid between $250 and $500.

3. Round the minimum bid to the nearest whole dollar amount when calculating. For example, if an item's FMV is $125, 25 percent of that figure would equal $31.25. Round it to $31.00.

Tips & Warnings

• Post a notice on the bid sheet that you will allow bid increments in whole dollar amounts only. This will deter people from making penny bids.

References

• Rainforest Action Network: How to Coordinate a Raffle or Silent Auction
• Lerios: Christine's Silent Auction Tips