Underbid recording is one of the most valuable tools available to anyone planning a fundraising auction. The process of recording every bid in a fundraising auction, underbid recording gives you a wealth of valuable data and information.
The most immediate benefit of underbid recording is the most obvious: it tells you who came in second on every auction lot. There are many situations where this data point is extremely valuable, but the most useful is when your winning bidder decides not to honor their bid. If this happens in the moment, immediately after the auctioneer says sold, it is usually possible to go back to the second place bidder and secure their bid.
But if the winning bidder decides not to honor their bid later in the evening, or even days later, we usually have few positive options. Having a list of second (and third, and fourth) place bidders makes this situation much more navigable.
Knowing who came in second is also very valuable when a donor tells us after the fact that they would be willing to donate and sell a second version of their auction lot. We’ve had many donors come up to us well after their lot sold and offer a second one – and without underbid recording we are forced to re-open the lot, or attempt to sell the lot another way.
We often base our opinion of an auction lot on how much it sold for, believing that the higher the sale price, the more popular the lot. At one auction, underbid recording revealed that the highest selling lot only had two extremely motivated bidders. Another lot, that sold for less, had the most active bidders of any lot of the auction. Which would you say was more popular?
Underbid recording also gives insight into your attendees’ behavior in a way that can help shape your event. One organization we work with was initially upset with a board member who sponsored a table for $10,000 but made no purchases in the live auction. They were considering moving the board member’s table from the front of the room to the very back. The underbid report revealed that while this board member did not purchase auction items, their participation in the auction had an extremely positive impact. The board member was an active bidder on multiple auction items, driving the price on each up and helping generate over $10,000 in revenue by participating in the auction. Their table stayed near the front following year.
Underbid reports also give you the ability to track bids by table, to see which table hosts bring the most active guests (or which sponsors need to recalibrate their invitation list), to find correlations between bidder behavior in the live auction and donor behavior in the fund-a-need, and more.
Capturing every bid in an auction is not an easy task. Whenever possible, get a professional to do it. An experienced pro like Beth Sandefur will be able to capture the majority of each lot’s initial bids, and all of the final bids. Expectations for a volunteer are more focused on making sure we have the last three or four bidders. However you opt to do it, underbid recording is an incredibly valuable tool that you should be utilizing as part of your fundraising strategy.