Determining Guest Spending Habits – Fact or Fiction?

Over the years that I have been fortunate enough to have assisted 100’s of charities, I have had the pleasure to speak with and consult them in regard to the charity fundraising events. 

One of the most popular statements which I hear on a routine basis is “Our people won’t spend that amount of money” – OR – “Our people only spend around $......”  No one is a mind reader, even though we wish we were. 

The above statements cannot be further from the truth, in fact, no one can predict their guests total spending.  Charities mistakenly believe that their guests will come to an event with a predetermined amount of money that they are going to spend.  I have written blogs about this fact and how spending can either be spurred on or how it can be hurt.

I would like to give you an example of why charities are misled:

Gift Basket “A” is on the Silent Auction.  Guests will look at the Gift Basket and determine what they feel its worth.  The fact that everyone is looking for a deal, guests will often bid 1/2 of what they believe they can purchase the items for.  Let’s say in a perfect world, they bid to full retail – but they will not bid over retail.  It just does not happen.

Item “B” is on the Silent Auction.  Guests have never seen the item sold at any store or on the internet and is has no retail value…in fact, even by staring at it, they cannot determine what it would sell for.  Plus the item gets them excited, so much so, they will fight “Tooth & Nail” to take it home.

A Real Life Example:

Several months ago, one of Charity Fundraising Representatives called me late in the evening to tell me something had happened.  While assisting a charity at a local Fire Department Hall, he mistakenly placed our “Tuscany Private Villa for 8” on the Silent Auction.  Keep in mind the setting of this event and then know that the minimum or reserve bid was $7,500.00.  Miraculously, a lady walked up and wrote down the one and only bid of “$10,000.00.”  Obviously, she won.

I asked him to speak to the bidder and ask her, her opinion.  She said “I have been coming to this event for three (3) years and I have never seen anything worth me bidding on, and today I did.”  Lesson learned.

Charities should understand that guests will only bid on something if it’s – worth something.  They will only bid as high as they think it’s worth.  By having items which do not have a high bid appeal, you can expect that amount or less.

In fact, in my own life, I have a very close friend who is as unassuming as anyone you know.  He wears blue jeans, T-shirts, hooded sweatshirts, a baseball hat and drives an old beat up pick up truck.  I have gone with him to many charity fundraising events.  This guy looks like your neighborhood mechanic.  But, in reality, he is a very wealthy individual - in fact, he is a multi millionaire.  People are shocked when he outbids everyone.  But, he will only bid on the items or travel packages which he wants and can not find anywhere else.  What's the message I am trying to convey?  Do not ever assume that you know how your guests are going to spend at your event or even give them a "They will spend this much only."  But know that if you are not using items that demand they spend high, they won't.
 

If you tell your guests “This is the starting bid” and the items demand high bids, then you will receive high bid.  Try using items which have mass appeal and demand high bids such as “One of Kind” autographed items, Travel Packages, Decorative items etc.

BW Unlimited Charity Fundraising sees this trend on a routine basis as well as tracks the successful ones all across North America.  If you would like to learn other “Fact or Fiction” misnomers, contact BW Unlimited Today at www.BWUnlimited.com.  We would love to help you turn a low spending event into a BLOCKBUSTER!!!