How to Price Auction Items to Boost Fundraising Revenue

When it comes to auction fundraising success, item pricing plays a pivotal role. Price your items too high, and you risk deterring bidders. Set prices too low, and you might leave money on the table. The key is finding that sweet spot where bidding begins with enthusiasm and escalates into a competitive (and lucrative!) bidding war.

In this updated guide, we’ll break down the fundamentals of auction item pricing, share expert tips, and explain how Givergy’s powerful tools can help you price, promote, and sell your auction items for maximum impact.

1. Understand Fair Market Value (FMV)

Fair Market Value (FMV) is the estimated value of your auction item based on what someone would reasonably pay for it in a regular marketplace. If the item has a retail price, such as a gift card or electronics, this is your FMV. For unique or one-of-a-kind items like autographed memorabilia or exclusive experiences, look for comparable items online via platforms like eBay or Amazon to estimate FMV.

Tip: For custom experiences or private events with no direct comparison, ask the donor to help you assign a value based on what they would typically charge.

2. Set Starting Bids Strategically

Your starting bid should be low enough to attract interest but not so low that it undervalues the item. A widely accepted rule is to set the starting bid between 30% and 50% of the FMV.

• For high-end or premium items, lean closer to 50%
• For lower-value or less exclusive items, start closer to 30%

With platforms like Givergy, customizing your starting bids for each lot is quick and simple, streamlining your event setup.

3. Choose Smart Bid Increments

Bid increments determine the pace and psychology of the auction. In general:

• Set increments at 10% of the FMV for most items
• Consider 15% for high-demand or high-value items to prevent long bidding chains

Aim for no more than 7–8 total bid increments between the starting price and the FMV to keep momentum strong and prevent fatigue.

4. Offer Buy-It-Now Options

Adding a “Buy-It-Now” price can be a smart strategy for popular items. This allows bidders to skip the wait and purchase immediately—especially effective for:

• VIP experiences
• Sold-out events or exclusive dinners
• Travel packages

Recommended Buy-It-Now Range: Set this price at 150%–200% of FMV to ensure a premium while preserving bidding value.

5. Bundle Items for More Value

Sometimes, individual items may not garner much attention on their own. Combining smaller donations into themed baskets or experience packages increases appeal and perceived value.

Example Bundles:

• Relaxation Package: Spa voucher + scented candles + robe
• Family Day Out: Amusement park tickets + picnic basket + travel snacks
• Foodie Heaven: Gourmet hamper + wine tasting + private chef session

Bundling not only boosts excitement but also helps reduce the number of auction lots, creating a more curated and high-quality auction experience.

6. Use Item Visibility to Your Advantage

The placement and visibility of auction items—both online and at live events—can significantly influence bidder interest. Highlight top-valued and most attractive items prominently, whether that’s online or physically at the venue.

Ensure you have:

• Clear, engaging item descriptions
• Professional, high-quality photos
• Fair Market Value (FMV) included when it adds credibility

Using mobile-optimized platforms like Givergy ensures your items look stunning across every device, making it easy for bidders to participate.

7. Be Tactical with FMV Display

While transparency builds trust, you don’t always have to display FMV. For example:

When to display FMV:

• Retail goods and tangible items
• Travel packages with defined costs

When to skip FMV:

• Priceless, exclusive experiences
• Unique memorabilia without clear market value

Strategically displaying FMV—or choosing not to—can impact the perceived value of your items and encourage higher bids. Platforms like Givergy allow easy toggling of FMV visibility at the item level.

8. Leverage Sealed Bidding for Premium Lots

Sealed bidding is an effective strategy for select, high-value lots. In this format, bidders submit their maximum bid without seeing the competition’s offers.

Ideal for:

• Luxury vacations
• Exclusive dinners or experiences
• Celebrity meet-and-greets

Sealed bidding builds suspense and typically drives higher bids, making it perfect for your most prized auction items.

9. Analyse Results and Refine Your Strategy

Post-event analysis is crucial to improving auction performance year over year. After your auction:

• Review which items had the highest engagement
• Assess if Buy-It-Now items sold quickly
• Identify any bidding plateaus where momentum stalled
• Compare results to previous events to identify trends

Using robust reporting tools, like those available through Givergy, allows you to pull real data and make smart adjustments for future success.

Final Thoughts: Smarter Pricing, Bigger Results

Pricing your auction items strategically is one of the most important factors influencing your fundraising success. By blending best practices, leveraging technology, and learning from data, you can maximize both engagement and revenue.

Ready to simplify your auction setup and drive bigger results? Discover how Givergy can help you raise more.