How to Set Silent Auction Bid Increments

The right silent auction bid increments encourage participation while helping each item move toward a strong final price. Set them too high, and bidders may stop; set them too low, and bidding may move slowly without adding meaningful revenue. This guide explains how to calculate practical increments using fair market value, starting bids, target prices, and real-world examples for online and paper auctions.

What Is a Bid Increment?

A bid increment is the minimum amount by which the next bid must exceed the current bid.

For example, suppose an auction item has:

• A starting bid of $100
• A bid increment of $10

The next acceptable bid would be at least $110. After that, the next minimum bid would be $120.

In an online auction, the auction platform keeps track of the current bid and the required minimum increase. With a paper silent auction, the increment is normally printed on the bid sheet so participants know how much they must add.

For a more detailed explanation of the terminology and bidding process, read What Is a Bid Increment?

Why Silent Auction Bid Increments Matter

Bid increments influence both bidder participation and the pace of your auction.

An increment that feels affordable can encourage more people to place a bid. Once bidders become interested in an item, repeated bidding may help move the price closer to—or sometimes above—its fair market value.

An increment that is too large can create the opposite result. A bidder may be willing to pay slightly more than the current price but not enough to cover a large required increase. That bidder may leave rather than continue competing.

Very small increments can also cause problems. They may create many bids without moving the item meaningfully toward your fundraising goal, particularly with paper bid sheets or short in-person events.

The goal is not to create the greatest possible number of bids. The goal is to create a realistic and inviting path from the opening bid to a strong final price.

How to Calculate Silent Auction Bid Increments

Instead of applying the same percentage to every item, calculate the increment using the item’s starting bid, target selling price, and desired number of increases.

Follow these five steps.

1. Determine the Item’s Fair Market Value

Fair market value, commonly shortened to FMV, is the price the item would normally sell for in the open market.

Examples include:

• A $100 restaurant gift card has a fair market value of $100.
• A new appliance may use its current retail price.
• A vacation package may use the combined retail value of the lodging, activities, and included services.
• A unique experience may require researching comparable experiences or reviewing results from previous auctions.

Fair market value gives you a consistent reference point for setting the starting bid, bid increment, and optional Buy Now price.

Avoid inflating an item’s value to make it appear more impressive. Bidders can often recognize when an advertised value is unrealistic, which can weaken trust in both the item and the auction.

2. Choose a Starting Bid

The starting bid is the minimum opening amount a participant can bid.

Many nonprofit auctions begin somewhere around 30% to 50% of fair market value, but the best percentage depends on the item and your audience.

A lower starting bid may work well when:

• You expect several interested bidders.
• The item has broad appeal.
• You want to encourage early participation.
• Competitive bidding is likely to increase the final price.

A higher starting bid may be appropriate when:

• The item is rare or highly desirable.
• The item has a limited but well-qualified audience.
• The organization must protect a minimum return.
• The item was acquired through consignment or has a required cost.

Starting bids and bid increments should be planned together. A low starting bid paired with a very large increment can still discourage participation. A high starting bid paired with a tiny increment may create an unnecessarily long path to the target price.

Bid increments work best as part of an overall pricing strategy. For guidance on fair market value, opening bids, Buy It Now pricing, and other item-pricing decisions,  see our complete guide to pricing silent auction items.

3. Set a Target Selling Price

Your target selling price is the amount you would reasonably like the item to reach through bidding.

The target does not always have to equal fair market value. Depending on the item and your previous auction results, you might use:

• 80% of fair market value
• 90% of fair market value
• 100% of fair market value
• A price above fair market value for rare or emotionally meaningful items

Suppose you have a weekend getaway valued at $1,250. You might decide that $1,150, or approximately 92% of fair market value, would be a strong fundraising result.

Using a target price makes the calculation more realistic than automatically assuming every item will sell for exactly its stated value.

4. Choose a Desired Number of Bid Increases

Next, decide how many increases you want between the starting bid and the target selling price.

This number is a planning tool, not a prediction. An auction item may receive fewer bids, more bids, or bids above the minimum required amount.

For many items, calculating a path of approximately 10 to 15 increases can provide a useful starting point. Adjust that number based on:

• The item’s value
• The number of likely bidders
• The length of the auction
• Whether bidding is online or on paper
• How quickly you want the price to move
• Whether proxy or automatic bidding is available

A lower-value item may need fewer increases. A high-value item may benefit from more approachable steps so bidders are not priced out too quickly.

5. Calculate the Bid Increment

Use this formula:

After calculating the result, round it to a simple, bidder-friendly amount such as $5, $10, $25, $50, or $100.

Avoid awkward increments such as $7.83 or $42.50 unless there is a specific reason to use them. Clean numbers are easier for bidders to understand and easier for volunteers to manage.

Bid Increment Formula Example

Suppose your nonprofit is auctioning a weekend getaway with the following values:

• Fair market value: $1,250
• Starting bid: $500
• Target selling price: $1,150
• Desired number of increases: 13

Apply the formula:

A $50 bid increment creates the following bidding path:

$500 → $550 → $600 → $650 → continuing until the item reaches $1,150

In this example, the increment equals only 4% of the item’s fair market value. That is lower than the general 5% to 10% starting estimate, but it works because the calculation considers the actual starting bid and desired target.

This is why a formula can be more useful than applying the same percentage to every item.

Silent Auction Bid Increment Examples

Use the following table as a starting reference, not as a mandatory pricing schedule.

You may want to round the calculated increment based on how your auction is organized.

For example, a calculated increment of $30 could be rounded down to $25 when encouraging participation is the priority. It could be rounded up when you expect strong demand and want the price to move more quickly.

Online Bid Increments Versus Paper Bid Sheets

The bidding format can affect the increment you choose.

Online and Mobile Bidding

Online bidding makes it easy for participants to check an item and place another bid without returning to a physical location. Smaller increments may work well because bidders can respond quickly when they are outbid.

Online auction platforms may also offer proxy or automatic bidding. A bidder sets the maximum amount they are willing to pay, and the system increases their bid as needed using the established increment.

BiddingOwl, for example, allows a bidder to enter a maximum bid. The system can then continue bidding on that person’s behalf, using the required increments, until the bidder’s maximum is reached.

Smaller increments can make that process feel more gradual and competitive, particularly for higher-value items.

Paper Silent Auctions

Paper bid sheets require participants to return to the item display and write down each new bid. Because bidders may place fewer bids during the event, a somewhat larger increment may help the price move more efficiently.

However, the increment must still fit the value of the item. Requiring a $50 increase on a $100 gift basket would create an unreasonable barrier regardless of the bidding format.

When to Use Smaller Bid Increments

Consider a smaller increment when:

• The item has broad appeal.
• You expect many bidders.
• The auction is conducted online.
• The starting bid is relatively low.
• You want to encourage early participation.
• The item has a high value and a large dollar increment would discourage bidders.
• The audience is price-sensitive or community-based.

A smaller percentage does not necessarily mean a small dollar amount. A $100 increment is only 4% of a $2,500 item, but it would be extremely large for a $250 item.

Always consider the dollar amount from the bidder’s perspective.

When to Use Larger Bid Increments

Consider a larger increment when:

• The item is rare, exclusive, or in high demand.
• You expect only a small number of serious bidders.
• Your audience includes donors with greater spending capacity.
• The auction is short and the price must move quickly.
• You are using paper bid sheets.
• The item has a minimum amount it must raise.
• Past results show that similar items attract strong competition.

Do not raise increments merely because an item has a high stated value. Consider the expected selling price and what participants are realistically willing to add with each bid.

Match the Increment to Your Audience

A school fundraiser, local animal-rescue auction, and formal fundraising gala may attract very different bidders.

For a community event, $5, $10, or $25 increases may feel comfortable for many items. At a gala featuring premium travel packages or exclusive experiences, $50, $100, or larger increments may be appropriate.

Past auction data can provide some of your best guidance. Review:

• The number of bids each item received
• The final selling price
• The item’s fair market value
• The starting bid
• The increment used
• The number of unique bidders
• Whether the item received no bids or only one bid

Look for patterns instead of judging the increment based on a single item.

Signs Your Bid Increment May Be Too High

Your increments may be too high when:

• Popular items receive only one or two bids.
• Many bidders view or watch items but do not participate.
• Items repeatedly stop well below fair market value.
• Bidders say the next required bid feels like too large a jump.
• High-value items lose bidders early.

Before blaming the increment alone, also examine the starting bid, item description, photographs, promotion, and audience fit.

A poorly presented or poorly matched item may underperform even with a well-designed increment.

Signs Your Bid Increment May Be Too Low

Your increments may be too low when:

• An item receives many bids but makes little progress toward its target.
• Volunteers must manage an excessive number of paper bids.
• Bidders find the process repetitive.
• The item’s price remains low late in the auction despite active participation.
• A short auction does not provide enough time for the price to increase meaningfully.

In that situation, increase the increment while keeping the next bid reasonable for the item’s likely buyers.

Common Bid Increment Mistakes

Using the Same Increment for Every Item

A $10 increment may work for a gift basket but not for a premium vacation. Grouping items into value ranges can simplify setup without treating every item identically.

Using a Percentage Without Checking the Dollar Amount

Ten percent of a $100 item is $10. Ten percent of a $5,000 item is $500. The second increase may be too large even though the percentage is the same.

Ignoring the Starting Bid

The increment determines the path from the starting bid to your target. Always calculate the two together.

Setting an Unrealistically High Starting Bid

Small increments cannot compensate for an opening price that already discourages bidders.

Choosing Awkward Numbers

Simple increments make bidding easier. Use amounts participants can quickly understand.

Treating Fair Market Value as a Guaranteed Result

Fair market value is a reference point, not a promise. Demand, audience fit, item presentation, and promotion all affect the final price.

Frequently Asked Questions About Silent Auction Bid Increments

Should Every Auction Item Have the Same Bid Increment?

No. Bid increments should reflect each item’s value, starting bid, target selling price, and likely audience.

You can simplify setup by creating value ranges. For example, lower-priced items might use $5 or $10 increments, mid-priced items might use $15 to $25 increments, and higher-value items might use $50 or more. Review unusual or premium items separately.

What Percentage Should a Silent Auction Bid Increment Be?

Approximately 5% to 10% of fair market value can be a helpful starting estimate. However, the final amount should also consider the starting bid, target selling price, and desired number of increases.

Higher-value items often use a smaller percentage because even a small percentage can represent a substantial dollar increase.

How Does the Starting Bid Affect the Increment?

The starting bid establishes where the bidding path begins. A lower starting bid may require more increases to reach your target, while a higher starting bid may require fewer.

Calculate the starting bid and increment together rather than selecting them independently.

How Many Bid Increases Should I Plan For?

There is no universally ideal number. Planning for approximately 10 to 15 increases can be a useful test for many items, but it should not be treated as a guaranteed formula for success.

Lower-value items, short auctions, and paper bidding may call for fewer increases. High-value items and online auctions may support more gradual increases.

Should Expensive Items Have Larger Bid Increments?

They usually need larger dollar increments, but not necessarily a larger percentage of fair market value.

For example, a $100 increment represents 10% of a $1,000 item but only 4% of a $2,500 item. The smaller percentage may be more appropriate for the higher-value item because a larger dollar jump could discourage bidders.

Are Online Auction Increments Different From Paper-Auction Increments?

They can be. Online bidders can respond quickly from their phones or computers, which may make smaller and more frequent increases practical.

Paper auctions often have fewer bidding opportunities, so slightly larger increments may help prices progress during a limited event. The increment must still be appropriate for the item and audience.

What Should I Do if Items Sell Well Below Fair Market Value?

Review the complete pricing and promotion strategy, including:

• Fair market value
• Starting bid
• Bid increment
• Item description and photographs
• Audience interest
• Auction length
• Number of registered bidders
• Promotion before and during the auction

Lowering the increment may help when bidders are being priced out, but it will not correct an unattractive item, weak promotion, or an unrealistic value.

Can Bidders Raise a Bid by More Than One Increment?

That depends on the auction format and software. In many online auctions, the increment determines the minimum acceptable increase, while bidders may enter a higher bid or set a maximum proxy bid.

With BiddingOwl’s proxy-bidding feature, a bidder can set a maximum amount and allow the system to bid incrementally on their behalf up to that limit.

Build a Better Bidding Path

Strategic bid increments give bidders an approachable way to compete while helping your nonprofit move each item toward a meaningful fundraising result.

Start with an accurate fair market value, choose a realistic opening bid, and set a target selling price. Then use the formula to create a bidding path that fits the item, your audience, and your auction format.

After the auction, review the results and adjust your pricing ranges for the next event. The most effective increment strategy is one that improves as your organization learns more about its bidders.