Live Auctions: Are You Losing Money On Procurement?
Hello my Fabulous Fundraisers!
Today, we’re going to talk about procurement. After all, a live auction with zero items isn’t going to make you much money!
I love hearing my clients’ excitement when they get items donated for their event. What I don't love is any of those items that aren’t likely to turn a decent profit for them.
So let’s take a look at what those items are really costing you to procure and what kind of items are worth going after.
It’s always great to get new items donated for your event, but when you start to break it down, you may realize that SOME of those items won’t make you much, IF ANY, money.
In fact, some of them may actually cost you money to deal with. Let’s say someone wants to donate a gift certificate.
If you’re already on-site, and they’re ready to hand over the gift certificate then and there, great, that’s not so bad.
But if they’re donating something that isn't a simple hand off... consider how much additional time it may take to get it.
First, there’s the time on the phone or writing emails to COORDINATE.
Then you have to FIND a volunteer or a staff member to go PICK IT UP.
You’ll have to STORE it.
You’ll need to TRANSPORT it to your auction site.
You’ll likely need to create an attractive DISPLAY for the item
You may need to PACK it up for the winning bidder to take home,
OR if it's a REALLY large item, you may have to SCHEDULE a time for them to pick it up.
These are just some of the extra steps that may come up in the process, and each additional step takes more TIME.
If you’re relying on your staff to handle the procurement process, the longer it takes them away from their Daily Duties, the more it will cost your organization, and that can add up fast.
So if you CAN, rather than tapping into your staff's valuable time, this process is most cost effective if you have a dedicated team of volunteers.
Just be sure to use your volunteers’ time wisely because it may be better spent on another part of your event.
Bottomline: don’t go chasing every little item, instead, focus your time on the items that will get you the largest payoff.
Now, let’s go raise some money!!