How to Determine the Perfect Starting Bid for Silent Auction Items

A silent auction is a fun and interactive way for a nonprofit to raise money. Attendees browse items up for sale and bid on them. The highest bidder “wins” the item and purchases it. However, there is one big difference between a silent auction and a conventional one – there is no auctioneer present. 

In a silent auction, participants place their bids silently and anonymously. So, how do you determine the perfect starting bid for silent auction items? Set the starting bid too high, and you’ll risk scaring off bidders. Set it too low, and you risk falling short of your fundraising target. 

With the right approach, you’ll find that sweet spot.

What Is a Starting Bid for a Silent Auction?

Part of setting up a successful silent auction is procuring desirable auction items. They should be exciting enough to make participants keep bidding, but also of a high enough value to bring in much-needed funds. Once you have your items, you will need to determine the perfect starting bids for each item. 

But what is a starting bid, and why does it matter? 

In any type of auction, whether a silent or conventional one, the starting bid is the initial price set for an auction item. It shouldn’t be too high to begin with, because it needs to encourage participation. 

Why Starting Bids Matter

The starting bid for silent auction items sets the tone for the entire auction. It’s the first impression each item makes. The starting bid builds interest right away, and the bidding increments help create momentum. 

A fair starting bid makes bidders feel like they’re getting a good deal. They’ll be more likely to participate. And as more people join in, your nonprofit wins as you’ll raise more funds. 

How To Set Perfect Starting Bids In a Silent Auction

Setting starting bids is more of an art than a science. But these easy guidelines will help you make confident bid decisions on your silent auction.

Step 1: Understand the Item’s Value

Before you set your starting bid, get a clear sense of what the item is worth:

• Is it a donated item, or did you pay for it? If you paid for it, consider what you’ll have to sell it for to make a profit. You may need to adjust your fundraising strategies for a volatile market. But the more items you can have donated, the more profit you make.
• How do you encourage donors to give more? Offer value in return for those funds raised with at least one rare, exclusive, limited edition, or one-of-a-kind item, when possible. This could mean a higher starting bid, and ultimately more funds, for your cause. 
• Estimate the price a similar item would sell for on the open market that is fair to both buyer and seller. This is the fair market value (FMV).

Step 2: Consider Your Audience

Think about who will attend your auction, their interests, and their budgets. Parents at a school fundraiser? Supporters at a gala dinner? Community members at a casual BBQ?

Match your silent auction starting bid strategy to what your audience can afford and what excites them. It’s okay to include a mix of price points so everyone can join in.

In our experience, offering variety keeps the energy high. Include a few big-ticket items for high bidders and plenty of smaller items to give everyone a chance to participate.

Pro tip: Offer your auction participants more convenience with mobile bidding. This allows them to place real-time bids using their smartphones or tablets, and to participate remotely with notifications when they’re outbid. 

Step 3: Set a Starting Bid

We recommend starting the bidding at 30% to 50% of the item’s fair market value (FMV). That gives bidders a good deal while encouraging friendly competition.

For example:

• An item worth $100 might have a silent auction starting bid of $30 to $50.
• A vacation package worth $2,000 might start at $600 to $1000.

This is a live auction starting bid formula that works for most people. Use the lower end of the above range for more common items. Use the higher end for premium or unique items. 

If something is truly one-of-a-kind, you could go even higher. However, don’t get too carried away. If the starting bid feels too close to retail value, people might hold back from bidding.

Step 4: Use Clear Bid Increments

Once your starting bid is set, decide how much each new bid should increase. These are called bid increments. Increase the bidding price in increments of 10% of the item’s FMV, or use this basic guideline to set bid increments for silent auction items:

• For items under $100, set increments at $5 to $10
• For items between $100 and $500, use $10 to $25
• For items over $500, go with $25 to $50 increments

Easy-to-follow increments make it fun and accessible for everyone. You want to keep things moving without jumping too fast.

Avoid These Common Mistakes

Here’s how to keep your auction running smoothly:

• Don’t leave starting bids blank, and don’t ignore bid increments. Bidders need guidance, and confusing bidding sheets can stall momentum. Learn more about this in our complete guide to silent auctions. 
• Resist setting starting bids too low. They can make items seem less valuable. Don’t set them too high either or you may scare off your audience.
• Not all items are created equal. Use different strategies depending on what you're offering. Artwork is a good example. If it’s a well-known artist, you can go higher. If not, keep it reasonable. Trust your gut, and if you're unsure, ask another team member for a second opinion.

Assess Your Results 

Assess the results after each auction. As you gather insights, you’ll develop a data-driven strategy to improve auction performance.

1. After each event, review what worked. Which items had bidding wars and which ones barely moved? 
2. Keep a spreadsheet to track item types, market values, starting bids, final bids, and the number of bids. 
3. Ask your bidders for feedback. Ask them if the pricing was clear and if they felt any items were priced too high. This feedback can help you adjust future starting bids for silent auction items.

Conclusion

Setting the right starting bid for silent auction items can be challenging. Our simple formula helps organizations set smart starting bids that drive engagement and fundraising success.

Keep bids fair, increments clear, and value in mind. Start low enough to excite your bidders, but high enough to show the worth of your offerings. Most importantly, create a welcoming environment where people feel good about supporting your cause.

Bidding Owl is the ultimate resource for nonprofits and charities. Our auction and fundraising software will help you organize professional fundraisers and auctions, both virtually and traditionally. Try us today.