Auction Math: Simplifying Your Event Planning

Planning a fundraising auction can seem daunting, but with the right formulas, it’s easier than you think. Auction math works for any size event, making your planning simpler and reducing stress for your committee. Once you understand what’s required for a successful auction—one that meets or exceeds its revenue goal—you can confidently set your procurement goals and define your event budget.

The First Step: Know Your Revenue Goal

Auction planning begins with knowing your revenue goal. Every calculation stems from this key number. From there, you can break down where your auction revenue will come from and what to expect from each revenue stream. Keep these percentage guidelines in mind:

• Live Auctions typically generate 66% of the income from your event.
• Silent Auctions make up the remaining 34% of auction revenue.

The Auction Math Problem: How Many Auction Items Do You Need?

Once you know your revenue goal, use these rules of thumb to determine the value and number of auction items required:

• Live Auction Items yield 75% of their actual value.
• Silent Auction Items yield 50% of their actual value.

Let’s say your fundraising goal is $50,000. Based on this goal, you’ll need to raise the following amounts from live and silent auction items:

• Live Auction Revenue: $50,000 x 0.66 = $33,000
• Silent Auction Revenue: $50,000 x 0.34 = $17,000

Now, you can determine the total auction item value needed:

• Live Auction Item Value: $33,000 ÷ 0.75 = $44,000
• Silent Auction Item Value: $17,000 ÷ 0.5 = $34,000
• Total Auction Item Value: $78,000

Accurate Valuation of Auction Items

Ensuring the value of your auction items is critical to your success. Work with item donors to get accurate valuations. If needed, you can compare similar items online using comparison shopping sites like Bizrate or PriceGrabber to verify the value.

Maximize Your Event Attendance

Once you’ve got the math in place for your auction items, it’s important to gather the right number and type of attendees to meet your revenue goals. Ideally, you’ll want at least 150-200 guests for most events, but here’s how attendance affects your auction:

• For items ranging in value from $30 to $50,000, aim for a minimum of 200 attendees.
• For higher-value items, like those between $75 and $100,000, you may need 300-400 guests to generate the right level of bidding.

Matching Auction Items to Your Audience

Equally important to the number of attendees is ensuring your auction items match the purchasing ability of your audience. It won’t help your cause to offer luxury vacations or high-end artwork if your attendees cannot afford to bid on them. Know your audience and tailor your auction items procurement to fit their interests and budget.

Plan the Right Event Details

Date, location, and logistics all play an essential role in your auctions’ success. Avoid scheduling your event on holiday weekends, unless your auction ties into a specific celebration. And when choosing a venue, look for these features:

• Accessibility: Easy to find with ample parking.
• Capacity: A space that comfortably fits the high end of your attendance estimate.
• Auction Setup: Enough room for auction tables, allowing guests to browse items easily.

Final Thoughts: Making Auction Math Work for You

By using these simple auction math formulas, you can confidently plan an event that meets your financial goals. The right number of items, matched to the right attendees, plus effective budgeting, will set you up for success. Auction math doesn’t just make your event more manageable—it ensures you hit your revenue targets with less stress and more confidence.