A live auction allows buyers to view items beforehand and discuss them with sellers, while an online auction doesn't give buyers that benefit. You must be present (or have a representative) at a live auction to bid, but online auctions have the advantage of allowing anyone to bid, anywhere. Hopefully, this information will be useful to you in expanding your knowledge of the advantages and disadvantages of auction methods and their differences. If you're a bidder struggling to decide which auction platform to use for a better experience, Powell Auction %26 Realty, LLC is the solution for you.
We'll help you understand the benefits and disadvantages of both, so you can do what's best for you. Live and online auctions are very different, but how? The end result is the same for both, a user or a person bids on an item, and after a succession of bids between other people who also want to buy the same item, someone bids the higher price and takes over the new item. In addition to the obvious difference that one is held online and one is held in person, what are some of the factors that differentiate a live auction from an online auction? Here are some frequently asked questions for both live and online auctions that can help you see how processes vary and are similar as well. Bidding in a live auction is much more competitive.
The auctioneer will indicate a price and to bid will raise his sign with the number. If no one else raises their sign before the auction says sold, you win the item. Due to the fast pace of auctions, it is imperative to be able to hear and lift the sign as quickly as possible. Live auctions typically offer bids close to or above the market value of items, while silent auctions only generate about half of their market value.
An expensive vacation for six people will probably receive higher bids at a live or online auction than in a silent one. Even people who start looking for a bargain could, at a live auction, get caught up in the action and spend a lot of money, having to remind themselves that, it was for a good cause. Since the COVID-19 pandemic, online auctions have taken off in popularity. Online auctions enable auction companies to reach a larger audience of buyers.
On the other hand, they also allow customers to bid and purchase a wider variety of equipment. One of the best benefits of online auctions is that it allows anyone with internet access to bid, no matter where they are. Do you organize a silent or live auction for your nonprofit's fundraising initiative. Are you interested in one? GiveSmart's Live Versus Silent Auction Guide Will Get You Walking and Talking Like an Experienced Nonprofit Auctioneer Without the Quick Speech.
We have tips and tricks for sourcing the right auction items, inviting the right guest list, incentivizing bids, and creating a spectacular atmosphere aligned with your fundraising goals, all to keep your nonprofit's mission thriving. Live auctions are the most traditional auction process, while scheduled auctions, which are sometimes referred to as silent auctions, are more innovative and new. Some hold an online auction before a silent auction, to reduce the number of products they will have to display. Another option is to hold an online auction after your live or silent auction, to deal with items for which you did not have space or that were not sold.
And silent auctions reportedly attract greater participation from women, some of whom are known to withdraw from the highly charged bidding environment of live auctions. As you can see, in both live and online auctions, although the result may be the same, the processes may be different depending on the type of auction you choose to use to rate the item you want. Combining a joyful and social evening with a good cause, many organizations auction with the aim of achieving a fundraising quota through successful bidding and selling auction items. When it comes to previewing auction items, if you're buying something from an online auction, you'll need to check preview times or schedule an appointment to see the specific items you expect to buy.
The premium is unique for each company, but in some cases of live auctions, the auction house will waive the buyer's premium if he pays by cash, cashier's check, bank transfer or secured check. Live auction items tend to generate higher bids, while the more relaxed and spontaneous nature of live silent auctions provides values closer to the 50 percent mark. The first question to consider if you think an auction could be a good fundraiser for your nonprofit organization is whether it should be a live, silent or online auction, or some combination thereof, as it has become especially advantageous since the start of the COVID pandemic. A traditional auction involves the auctioneer's call for bids, while buyers raise their bets to the highest possible bid.
It is also a good idea, especially if you are not familiar with how live auctions work, study the common auction terminology used. All proceeds earned from live auction attendees and their bids go to a charitable cause, either a sponsored program or the non-profit organization organizing the auction itself. . .