Almost every event has a series of speakers who make their way to the podium pull out a crumpled sheet of paper and “make a speech.” Some are dynamic presenters and some…not so much. Sometimes the flow of the evening is determined by these people, instead of the other way around. And what your speakers say is critical to the success of the evening.

At an event last year three people - a CEO, a board member, and a celebrity - got up before the auction and proceeded to hammer out a message of “the economy sucks…..we’re all broke….we need to tighten our belts, etc. etc.” As I stood off to the side of the stage, I could feel the energy in the room drain and actually saw people put their paddles on the floor. I do not suggest that anybody pretend that things are peachy keen, but there’s no need for three consecutive speakers to take the wind out of anybody’s philanthropic sail.  A message of needed support and acknowledgment of difficult times can both be addressed.

Along with content, length is also a concern. One painfully long thankyou speech by an honoree at a large event in San Francisco actually delayed the evening by 30 minutes! The following year the organization video-taped the acceptance speech for that year’s recipient. Then they projected it on the large screens and let the honoree come up on stage, get the award, say thank you and return to his seat.

It’s obviously a tricky matter when it comes to editing or controlling people’s speeches. But your guests will appreciate it if you take the time to offer your speakers a well placed word about brevity when discussing their speeches.  Everyone’s goal should be for the audience to still have plenty of energy and enthusiasm left by the time the auction starts to keep those paddles waving.

The experience attendees have at your event is based upon each and every interaction they have.  From the moment they arrive until the moment they checkout, every volunteer and staff member at your fundraising event is helping set the tone for the evening and shaping your guests’ perceptions of how things went.

And while it is nearly impossible to make everyone in a 300-person crowd happy, it is possible to set an event-wide tone of customer service and success. Good customer service can make people forget the most egregious of errors, while bad customer service can turn the most innocuous of molehills into mountains.

Take, for example, the experience my wife, Michele, and I had on our honeymoon at an eco-resort on the Riviera Maya in Mexico. We knew in advance that our villa came with a CD player and surround-sound system, so we brought a sleeve of CDs to listen to on the trip. One night, well into our trip, we were blasting music and dancing around the main room of our villa.

There was a knock at the door, and when we opened it we found one of the resort staff members flanked by security personnel. He cocked his ear to one side, and then said to one of his compatriots, “Really? This is the right room? Well, I can hardly believe it myself, but one of your neighbors has complained about your music being too loud. I hate to trouble you, but would you mind turning it down a bit?”

Brilliant! I’d never felt so good about being asked to turn my stereo down, and I’d never heard anyone else make such an ask so artfully. I only wish I’d had his example to draw upon back when I was an R.A. in the dorms at U.C. Berkeley.

Contrast that with the sound guy I saw at a recent event. He hadn’t brought adequate equipment to cover the needs of the event, and was forced to crank up the volume on the only two speakers he had. Furthermore, he’d set up his speakers so they were aiming right at the tables in front of them. At head level. And these were potential big bidders.

As soon as one table realized that the speakers were going to be aimed at their heads all night long, they got up and redirected the speaker so that it no longer aimed at them - or anyone else in the audience, for that matter. When the sound guy realized this, he went over and turned the speaker back towards the table without saying a word.

As he was passing their table, someone at the table asked the sound guy if he could turn it down a bit. Without breaking stride, he turned his head and sneered, “No!” and went back to his mixing board. Everyone at the table was shocked. I was shocked. It was a level of rude that no one expected, especially in an event setting like that.

I tried to smooth things over with the table by offering a solution of moving their table away from the speaker and closer to the dance floor. It helped, but it didn’t fix things one-hundred percent. It certainly didn’t change the tone the sound guy had set when he snapped at them.

The screaming sound guy may be an extreme example, but it doesn’t take much to impact a guest’s mood at an event. All it takes is one rude waiter, a volunteer who is too focused on their assigned task to answer a quick question, or bartenders who spend more time chatting with themselves than interacting with attendees to turn one person off. And at an auction, the way people vote is with their paddle - or by withholding use of it.

Empower you staff, volunteers and vendors to create an atmosphere of positive customer service at your event. Each of them has the potential to make your event great for each and every attendee; especially if something goes wrong. The customer service they provide will define attendees’ experience. It will also impact the amount of money you raise, either the night-of, or at future events.

At more than one recent event, I have been handed a catalog with inflated values on the live auction packages. There is an inherent danger in this, as it stretches the boundaries of trust with bidders. The desire to establish a high value for the auction packages one works incredibly hard to obtain is understandable, but extremely high lot values can have a chilling effect on an auction. Especially in this economic climate.

A fundraising auction is in many ways an exercise in building and maintaining trust. Attendees come because they trust they will have a good time. They give you money because they trust you honestly need it and that you’ll do good work with it. You have to trust that your crowd will show up and support you at the level you need.

The latter is probably harder to do, but it is also the most important. It takes a big leap of faith to put yourself out there, to put all of the effort into making the event happen, and to trust that your crowd is going to come support you at the level you need. The moment you start inflating the values of your live auction lots, however, you violate that trust. It seldom pays off.

When the values of a live auction are inflated, a couple of things can happen. At best, people feel priced-out of the auction, and start paying less attention. This is bad because we need everyone to feel like the auction is somewhat inclusive, at least until we do the fund a need.

The worst thing that can happen if you inflate the values is that the audience turns on you, because they think you are being greedy. A few summers back I did an event that was lucky enough to have one of San Francisco’s most wealthy and highly-regarded philanthropists in the crowd. The people putting the event on wanted everyone in the room to rise up to said philanthropist’s level, and insisted on inflating all of my opening bids.

Our opening lot was a winemaker’s dinner for 12 people at a then soon-to-open Winery. At the client’s insistence, we changed the opening bid from $2,000 to $4,000 - thereby also changing the implied value of the lot from $4,000 to $8,000. Ridiculous. And I wasn’t the only person who thought as much.

One of the tables was filled with a bunch of bidders I see at many wine auctions in California and beyond. This crowd comes to spend money at an auction. I could see the looks on their faces immediately change when I announced the opening bid, as they all got pissed off and put their paddles down. That same table of people had spent over $30,000 at an event only two weeks before. That day, they didn’t bid once, not once. They turned on the event and sat on their paddles from the opening bid.

It affects my credibility as your auctioneer, as well. If I’m telling a crowd that the lots are worth X and everyone knows they’re worth less than that, people start to doubt what I say. And when people start to doubt what I say, they start to spend less, ultimately having the exact opposite effect of the original intent. There are many keys to getting people to spend more at a fundraising auction. Simply saying the stuff is worth more than it is isn’t one of them.

At the end of Clint Eastwood’s Oscar-award winning western, Unforgiven, Little Bill Dagget (Gene Hackman’s character) finds himself about to die at the hand of Edward Munny (Eastwood), one of the very criminals he’s spent his entire life protecting his little town from. “I don’t deserve this… to die like this,” Dagget says.

Munny pauses just long enough before pulling the trigger to reply, “Deserve’s got nothing to do with it.”

Audiences at fundraising events these days are completely unforgiving, leaving little room for error before they turn on or tune out an event. And like Munny said, “deserve” has nothing to do with it.

It used to be that if a sound system was sub-optimal, a crowd would work to hear the auction and pay attention. I did a school event this year that had an unfortunately horriffic sound system, and the crowd took that as their cue to save some money. “What’s that? You want me to bid on what? I’m sorry, I can’t hear you, my 401k is down 37% this year!”

The event finished down 40% from last year’s totals. We’ll never know for sure how much the sound system cost them, but I’d estimate that half of that is attributable to how poor the sound was.

Start the auction too late? Unforgiven. Have too many speakers or too large a program? Unforgiven. Put on a poorly structured fund a need that doesn’t spell out what you need the audience to help you accomplish? No matter how badly you need the money, this year “deserve” alone has got nothing to do with it.

We have always advocated thinking of your event as theater, and planning your event so everything that happens does so for a reason.  This year, that reason has to be focused more tightly than ever before. We’ve seen plenty of evidence to back up our theory that people are attending less events than ever before. And if they are given the slightest hint that something is amiss, they are ruthlessly tuning out and saving their money for an event that deserves it more.

Reynolds & Buckley will be conducting a workshop entitled Fundraising Auctions in Hard Times on Tuesday, February 24th at the Volunteer Center of Sonoma County. Company founder and nationally recognized fundraising expert David Reynolds will be on hand to discuss the challenges facing anyone conducting a fundraising auction today, along with associates Greg Quiroga and Ed Gold.

This is the third year we’ve partnered with the Sonoma Volunteer Center to offer a workshop, and this workshop couldn’t come at a more relevant and important time. We will discuss emerging trends in fundraising auctions, share insights from the 50+ events we’ve done since the recession “officially” began last fall, and touch on the ever-important fundamentals:

• Laser beaming your message
• Donor development
• Bidder recruitment
• Audience empowerment

Then we’ll break up into roundtable discussion groups led by David, Greg and Ed to address the specific concerns of each organization’s event. Whether you are considering starting an auction or have a well-established event, you are certain to gain a wealth of tips and ideas.

Date: Tuesday, February 24
Time: 9:30 am – 12:00 pm
Place: Volunteer Center of Sonoma County, 153 Stony Circle, Suite 100, Santa Rosa, CA
Fee: $45 for members of the Volunteer Center of Sonoma; $65 for non-members
For: Executive directors, board members, development staff and other volunteers involved with fundraising auctions

Click here to register online for this Reynolds & Buckley workshop at the Sonoma Volunteer Center.

I feel compelled to note that all of the fees associated with this workshop cover costs for the Sonoma Volunteer Center and its programs.

The question always comes up as we start working with a new client;

“In the catalogue should we list value or opening bid?”

In fact the choice is broader than that.  I have used the following options over the years, each has it’s own advantages and disadvantages.

1. Value.  The advantage is that it is straight forward.  We are not trying to trick the bidders into over bidding through ignorance.  The main disadvantage is that it acts as a barrier telling the bidder to bid this high and no higher.  There is a minor secondary problem.  Sometimes the donor includes a totally unrealistic valuation.  In that case what value do you list?
2. Opening Bid.  The advantage is that there is one less decision for auctioneer, making his or her life easier. The disadvantage is that it removes one of the best tools in the auctioneers toolbox.
3. Estimate .  I use a simple formula to determine an estimate based on the value.  I list a estimate of 10% down and 50% up.  For example, if a lot is valued at $1000, I would put the estimate at $900 - $1,500.  The advantage of this method is that does set the relative value of all the lots and it also starts the bidders thinking about the higher price.  The disadvantage is that the upper price level sets an impenetrable barrier.
4. Priceless or equivalent. I understand having to list the occasional  lot as priceless.  Literally no one knows the price.  The advantage is that while the term priceless just means no known price, big or small, the tendency is to assume a high price If you list  more than a few lots this way it becomes precious.
5. Leave it blank.  The advantage is that it is really easy.  In many ways the whole purpose of auctions is to determine a price and whatever a lot sells for is the true value of the item on that day.  The disadvantage is that it can be confusing for the bidders.  The Central Coast Wine Auction has never list any prices or values and it has worked well for years. The reason is that Archie McLaren, the founder and executive director, writes the most complete, detailed and best promoting catalogue in the business.

Unfortunately there is no one correct answer to this except to stay with whatever system you are currently using, as any change may confuse your audience.  If you are hosting a first year event I would recommend choosing from options one, two or three.  If you are as lucky as a couple of our events you would label the value as “Opening Bid” and just go from there.

As a result of the downturn in the economy, many events are finding it more difficult to get auction donations. In many cases the number of donations has declined, or the quality of some of the donations has declined. Still wanting to fill their auction with good lots, many events turn to consigned auction items as a way to round out their auction.

Do your research before adding consigned auction lots to your auction. In many cases you can get better deals on your own, if you are simply willing to do the legwork. In other cases, a lot that makes sense for an East-coast auction may not be well-suited to a West-coast event. These days many hotel properties are struggling to stay at capacity, and are willing to make deals if you deal direct. But in many cases, you don’t have to look very far to find ways to do better than the consignment companies.

One such example is Winspire’s “America’s Cup Stars & Stripes Experience in San Diego 4-Night Package with Airfare for Two” which they value at $5,618.00 and sell to events for $1,750.00.

The package includes round-trip coach airfare from anywhere in the U.S. on American Airlines, four nights at Hyatt Regency Mission Bay Spa & Marina, and a 150-minute sailing experience on Dennis Conner’s Stars and Stripes. The first time I encountered this lot, I thought the value must really be in the sailing experience. Not so.

Anyone can sign up to sail on the Stars and Stripes for $99 per person. You need to be willing to do your research and book your trip yourself. Given that Stars and Stripes offers gift certificates, it means you can secure the package without having to book the date for your winning bidder.

The Mission Bay Hyatt? I managed to find suites available at $239 per night at the height of the season. So far, this $5,618.00 package has an actual cost of $1,156.00 before taxes. Actual cost is probably closer to $1,260.00 after California takes its cut.

So the difference in value that Winspire brings to the table on this particular lot is in the airfare. Two round-trip tickets on American to San Diego for $500 is a bargain if you are coming from New York city. Cross-country flights on American to San Diego cost an average of $500 per person. If you are a New York school putting together an auction package, this lot makes sense for you.

However, Bay Area auctions would be remiss to purchase this lot based on airfare, for myriad reasons. Foremost is the fact that American doesn’t fly direct to San Diego from San Francisco. Any flight on American to San Diego would require a trip to Seattle, Chicago, or Dallas first - resulting in a 9-hour flight. The other major factor is Southwest, which flies non-stop between SF and San Diego multiple times a day, for an average of $120/person, round-trip.

Furthermore, a surprisingly large number of auction lot winners never actually redeem their lots. One event we asked to track the data reported that 45% of their winning bidders did not redeem their getaways purchased in the live auction.

The vast majority of consignment houses require that you purchase the certificate as soon as the auction is over. If your bidder doesn’t redeem the trip before the expiration date, the consignment company keeps the money and your event is out the cash. We discussed this with the Gavel Group at their inception, and they refuse to budge: A buyer’s lack of redemption is their pure-profit.

Over at Winspire, Jeff Cova is more understanding and will often work with winning bidders to extend the deadline. He’s not out to sell vapor, and is more interested in people actually redeeming their trips since he has to buy them from the various airlines, hotels, etc.

The major issue with this is that when one of your donors doesn’t redeem a trip the consignment houses make a profit. A profit that your bidder assumed was going straight to your cause when they made the bid and then opted not to take the trip. When you consign an item to your auction there is no viable way around this, and it is a risk you have to be willing to take. Some auctions opt to include the actual costs of the items they are paying for in the description. It certainly sheds a new light upon a lot when donors know how much of the money is actually going to the charity - I’m not 100% certain that light is favorable.

One other big package being offered at the original writing of this post was a trip to the  2009 Super Bowl XLIII in Tampa. It included a 3-Night Stay and First/Business Airfare for Two at a cost of $19,000.00 to the buyer. Included in the package were round-trip, first class airfare on American, three nights at the Ginn Reunion Resort, and two tickets to SuperBowl XLIII.

The Ginn Resort was, as of the original writing, offering villas for $279 per night, with many still available. SuperBowl Tickets had hit a 15-year low at that point, and were currently reselling for as low as $1,500.00 per ticket. The same section the consignment houses was offering were currently at $1,800.00 per ticket. Total cost to this point if you wanted to put it together yourself was: $4,437.00, not counting airfare (anyone want to hit the SuperBowl next weekend?). If you were to simply sell this package on your own, without airfare, you’d immediately save $15,000.00 off of what the consignment houses wanted to charge you.

To be ultimately fair to the consignment houses, I opted to research first-class flights, less than one week from the date of flight. American Airlines wouldn’t quote a fee, but I found unrestricted first-class on United for $1,600.00 per person. Meaning that you could put that package together for $7,637.00 on your own - at a savings of more than $11,000.00 off of the consignment house’s price.

Jeff Cova will point out that one of the main benefits of working with Winspire is the fact that they are experienced concierges: they will take care of your buyers, period stop. And the last thing you want are unhappy bidders, especially unhappy bidders who have spent significant amounts of money on prime auction packages.

To make matters worse, there are auction companies out there that purchase lots from consignment houses and then resell them to auctions for a significant profit. One auction house offers the Stars and Stripes package to events they work with for a cost of $3,000.00. I know because one of my clients hired them to do a silent auction, and this other firm “offered” to consign a Stars and Stripes package for $3,000.00 into the live auction. My client agreed before doing any research on the lot (or turning me loose to look it up). When I compared the write-up the firm provided me to the .pdf available on Winspire’s web site, they were exactly the same, word for word.

I understand the need to make your auction better, and encourage you to follow our guideline of 1 to 3 when spending money on an auction lot. In today’s economic environment there may be even better deals to be found out there than the above examples, which were researched solely online. A quick phone call to the Hyatt in Mission Bay, for example, may yield significant discounts, and nothing trumps interpersonal relationships.

The point being, if you have to pay for auction lots do your research. Make an honest evaluation of your crowd and the lots available. If an auction lot being offered for consignment seems over-priced or too good to be true, it probably is. But if an offering and price-point map well to your crowd and fill a much-needed gap in your auction, no-one will blame you for bringing in some professional help.

One of our consulting services most utilized by clients is helping put the live auction lots in order. We always strive to create a natural flow to a live auction that readily engages the audience and builds to the ultimate climax, the fund a need. Our ability to do this is based on our knowledge of the flow of auctions and an understanding of the value of the live auction lots themselves.

Value plays an important role in the flow of an auction and in the capacity to develop a structure and narrative that works. There are a few simple guidelines, such as don’t open or close with your most expensive lot, and don’t place the most expensive lots back to back. One of the greatest challenges in ordering an auction is determining where to place those “priceless” items, especially class projects for schools.

One school event we work with presents a particularly unique challenge: nearly half of the 45 lots in the live auction are school projects. When initially confronted with the challenge of ordering this auction, we asked Kelly, the event chair, to assign an arbitrary value of “A”, “B” or “C” to each project.

Kelly took the time to look at each and every project from many angles. She looked at what they had sold for last year. She looked at the bidding history of the parents who spent the most money. She utilized ticket sales to identify which classrooms would have the most or least parents in attendance the night of the event. Kelly even applied a little subjective evaluation, to determine if something had any special appeal beyond what “only a mother could love.”

Kelly’s valuation of her auction was invaluable for us, and the event. It also showed a level of knowledge and creativity that underscore a few key points any auction could benefit from:

• Know your audience, especially your highest bidders
• Utilize previous years’ results as a foundation to learn from
• Approach event planning with a creative eye
• Tackle each task within the larger focus of the goals of the event

In Kelly’s case, this knowledge, focus and creativity resulted in the highest-grossing live auction her school has had to-date, including a record-setting fund a need, in the midst of incredibly challening economic times. 2009 is going to call for extra hard work to just make the same as years past.

Odds are, your auction benefit from some simple ABC’s as well.

Every event walks the tightrope between good party and successful fundraiser. If you don’t throw a fun party, no-one will want to come back next year. And if you don’t raise enough money to support the cause and justify the party, it isn’t worth doing next year.

A truly successful event has a unified vision from beginning to end that makes it fun to raise money for a cause the crowd is pre-disposed towards passionately supporting. Attendees should be invited to support a fundraising event that will be fun, not invited to a party and hit upside the head with an unexpected call for cash.

Everyone on your team’s vision of success should include maximizing the philanthropic potential of your attendees. There are always compromises, and I’m not suggesting that every event should have the same length auction start at the same time and feature the same lots. But I am wishing that event planners and event management companies would get on board with making auctions successful, and think about some of their decisions from an auctioneer’s perspective.

Case in point: at an event I did two weeks ago, the event planner put together a stunning room. Monarch butterflies were the main thematic element, and they were everywhere; projected on the ceiling, sitting on each place-setting’s napkin, and covering the three-foot high metal “tree” centerpieces at each table. From the standpoint of an event designer, it was gorgeous.

Guests at each table could readily see their mates across from them without the centerpiece blocking their view. And when you looked around you saw a forest of butterfly-covered trees. And that was the problem.

From the back of the room you couldn’t see the video screens through all of the trees, rendering the much worked-on video about the organization and its great work invisible to all but a few up front tables.

And when I was on stage, I was probably more voice than visible presence as well. Meaning guests couldn’t see me, and I couldn’t see them, or their paddles. I am most effective when I can look a bidder in the eyes and ask them to spend more money. That night, I was happy just to figure out where the bidders were. Establishing any sort of intimacy died on the branches of fifty-something Monarch encrusted trees.

I know the event planner and his team very well. I’m already carefully wording my follow-up conversation with them. Seeing as how this isn’t the first time they’ve done something like this at an event I was working on, I want to at least get them to acknowledge I have a perspective, if not see things from it now and again.

There are few things that can have as large an impact on a fundraising auction as the sound system. If attendees can’t hear the auction, they won’t bid. And if all they can hear is the auction, and they can’t talk at their tables without yelling, odds are they won’t come back next year.

The challenge is to set up a sound system that accomplishes the goal of creating an environment where everyone can tune in to the auction at any point…and party at their tables the rest of the time. It is an effect, really - auction surround sound - and it takes a professional sound company to accomplish it. There are many companies who understand the special needs of a fundraising auction; our longtime favorite in the bay area is Sound Expressions in Santa Rosa. They not only set up great sound systems, they engineer them throughout the event as well.

There is a massive ebb and flow to the noise level in the room during a fundraising event. A good sound engineer will be able to react to changes in ambient noise level and alter the sound as necessary. A great sound engineer will be able to see them coming, and proactively adjust levels.

Audiences are increasingly getting louder. Ever since the economy took a severe downturn this fall, people who don’t have the money to spend seem to be looking for any opportunity to party harder and louder. Watch the following video from an auction on September 6th to get an idea of just how loud a crowd can be. The lot sold in the video is the most expensive lot of the night, and it should have generated the most momentum within the crowd. As it is, you can barely hear the people who are into the event above those who are just there to party.

That was with the best AV company I know at the helm, manning the sound board during the auction. It is hard to imagine what that event would have been like without a professional on the boards throughout the auction.

Another recent event, however, opted to save a few bucks and go with a sound company that underbid by submitting a good looking list of equipment on paper that did not include a technician to run the show. The event took place outside, started during daylight hours then progressed into evening, and required PC and DVD video signals across four monitors. A tricky setup under any circumstances, but compounded by the fact that the technician left as soon as he had set up the system and sound-checked.

Two minutes into the video presentation something went wrong in the system, sending a horrible noise throughout the speaker system. The technician was 30 minutes away, leaving a bunch of volunteers to trouble-shoot and try to get the event moving back on schedule. After 10 minutes of frantic action, we got the crowd’s attention, re-started the video and got rolling with the auction. Thankfully, the passion of the crowd was more present than the sound tech, and the event was still a solid success.

But it raises a few key points:

• Hire a good sound company
• Get in writing that they will have sound engineers on-site throughout the evening
• Designate a point person for the night of the evening to be the main contact with the sound company

When in doubt ask yourself if saving a few hundred bucks is going to be worth the potential for catastrophic failure. If your sound system fails you, odds are your audience will forgive you, but will you and your auctioneer be able to find a way to quiet them down and keep them engaged? And with things the way they are, is that the place you really want to gamble?