The first step to pricing your silent auction items is determining their fair market value. This will be the foundation for all your pricing, so it’s important to take the time to get it right. 

What is Fair Market Value? 

Fair market value, or FMV, is the highest amount an item can be sold for in a fair and open market. 

In other words, it’s the price both you and your bidders would agree is fair to pay for an auction item.

Fair market value can be different than an item's cost. Cost is fixed at the time of purchase, while FMV can change over time based on perceived value, demand, and other factors. 

How to Calculate Fair Market Value

Calculating fair market value involves several key steps to ensure you're pricing items accurately and competitively: 

🔎 Research Retail Price

If the item is new, simply search the retail price online or through the manufacturer. This will be your fair market value. 

For items with no clear price such as antiques or memorabilia, consult with experts in the field or browse online marketplaces such as eBay or Facebook.

While experiences such as travel can be harder to price, reputable auction consignment companies will provide you with an FMV and average bid value.

⚖️ Compare With Other Events

Evaluating the FMV of items across similar nonprofit events can give you valuable insight into your own pricing. 

For the most accurate picture, compare events similar to your own in terms of size, auction items, and attendees. 

✨ Consider Uniqueness and Appeal

Unique or one-of-a-kind prizes command higher prices at auction, as do trending or high-demand items such as travel experiences or exclusive events. 

When pricing these items, research recent auction results and consider the item's brand, rarity, appeal, and cultural value. 

The more exclusive and memorable the experience, the higher the potential bidding.

 Setting Your Starting Bids

• Set your starting bids at 30-50% of fair market value 
• Price buy-now options at 150-200% of fair market value
• Avoid buy-now options for items that can spark bidding wars

Once you've determined the fair market value of each item, it's time to set the starting bids. 

A general rule of thumb is to price items at 30-50% of their fair market value. 

When considering that range, aim to set a starting bid that at least covers the item's cost. This ensures you’ll never suffer a loss even if the item sells at the opening bid.

Let’s break it down further: 

Standard Silent Auction Items

✅ 30 to 40 % of FMV

Standard auction items make up the bulk of your silent auction table and should be priced at 30-40% of their FMV.

As these items are easily accessible elsewhere, a lower starting bid can make them more attractive to bidders, driving more competition and ultimately raising more funds. 

Examples: 

• Themed silent auction baskets
• Local memberships or services
• Small electronics/appliances

High-Value Silent Auction Items

✅ 50 % of FMV

Due to their exclusivity and appeal, high-value lots should be priced at 50% of their FMV. A higher price point helps reflect their worth and attract more serious bidders. 

However, be cautious not to set the starting bid too high, as this may discourage participation and limit the potential for competitive bidding.

Examples:

• Luxury Travel experiences
• VIP tickets and events 
• Rare memorabilia

Buy it Now Price

✅ 150 to 200 % of FMV

'Buy-now' or 'Buy it Now' options allow your donors to buy a silent auction item immediately without competing in a bidding war. 

Since the price won’t be driven up by competitive bidding, buy-now options should be priced at 150-200% of the item’s FMV. 

Should You Include a Buy-Now Option?

Buy-now options are a strategic way to capture guaranteed funds from your auction table and can drive a sense of urgency that jumpstarts bidding.

However, buy-now options should always be used in moderation. The last thing you want is to discourage competitive bidding and lose out on valuable funds. 

Avoid a Buy-Now Option for These Items:

❌ One-of-a-kind experiences

❌ Items that could “outbid” the buy-now price

❌ Unique, popular, or emotionally charged items

❌ Items that have previously started bidding wars

Setting Your Bidding Increments

• Set bid increments at 10% of the fair market value
• Indicate the bid increment amount clearly on the bid sheet
• Mark the percentage as a rounded dollar amount

Setting the right bid increments is an equally important part of your pricing strategy. 

Bid increments are the minimum amount by which a new bid must exceed the previous bid. 

Fundraising experts recommend a minimum bid increment of 10% of an item’s FMV. This ensures that it's not too high to discourage bidding.

Mark the starting bid and bid increments clearly on your bid sheet to avoid any potential confusion. Amounts should always be converted to a rounded dollar value so bidders understand what they’re pledging at a glance. 

Getting Your Pricing Just Right

• Tailor prices to your event's audience and theme
• Items that align with your mission can command higher prices 
• Consider seasonal demand, location, and shipping costs

🙋🏻‍♀️ Know Your Donors

To maximize revenue, tailor item prices to your specific event audience.

Begin by researching donor demographics such as age, income level, and spending power. An item may have a high fair market value, but if your audience is budget-conscious, setting the starting price too high might deter participation.

For a more accurate picture, survey your audience, examine past events, and leverage your CMS for bidders' donation history. 

🎀 Consider Your Event Theme

Think of your silent auction as an extension of your event. Use the space to create attractive visuals that play up your event theme and draw bidders to the table. 

Aligning silent auction items with your event theme can also drive more revenue to your cause than prizes with no significance. 

For instance, rare vintages, wine retreats, or private winery tours may command higher prices at a wine-tasting fundraiser due to their relevance and audience appeal. 

🫱🏻‍🫲🏽 Leverage Donor Loyalty

Your audience's emotional connection to your organization can impact their generosity and the perceived value of your items. 

Choose items that resonate with your mission to encourage higher bids and more audience participation. 

For example, a conservation organization is more likely to raise funds with a bucket-list safari experience than a golf getaway.

Powerful Strategies to Boost Your Silent Auction Impact

• Create a sense of urgency to drive competitive bidding 
• Offer incentives and showcase items effectively to encourage interest 
• Take advantage of auction consignment to attract bidders and increase revenue

⚠️ Create a Sense of Urgency

Encourage competitive bidding by implementing buy-it-now pricing and announcing clear closing times. For online auctions, use countdown timers and reminders to maintain excitement and drive action. 

⚡ Offer Bidding Incentives

Motivate participation by providing bonus items for high bidders or holding raffles for all participants. These strategies create a positive experience for everyone and encourage more generous bidding. 

🏝️ Leverage Auction Consignment

Auction consignment packages offer high-value prizes at zero cost to your organization, helping you attract bidders and maximize revenue. Luxury travel packages are especially effective at generating excitement and boosting bids. 

🎁 Showcase Items Effectively

Presentation matters. Arrange items from lowest to highest value to encourage progression, use clear descriptions and visuals, and keep your collection curated—about one item per two attendees—to maintain competitiveness. 

Ready to elevate your silent auction? 

With the right strategies and auction items, you can boost revenue, inspire generous giving, and create an unforgettable experience for your donors.

At LuxGive, we offer everything you need to host a successful silent auction—from high-performing luxury travel experiences to expert fundraising guidance. 

Book a Free Fundraising Consultation with our experts to discover how LuxGive’s luxury travel experiences can raise 3x more at auction and help you reach your fundraising goals.