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►When a Bidder Backs Out-Part Two

March 11, 2020 - Author: Jenelle Taylor, CAI BAS - Comments are closed

See Part One for 3 things you can do to (hopefully) safeguard your gala and stop this from happening, but, if it happens, here’s what you can do:

(Excerpt from a recent conversation with a client:)

I would 
-start by trying to address the exact issue: is the winning bidder just now realizing the blackout or expiration dates? If so, contact the donor to see if you have any wiggle room. Is the amount of the purchase too much at one time? Offer to break up their total into payments. Is the top bidder claiming, “It wasn’t me?” Show him or her your back-up confirmation system, whether clerk sheet, signature, video of the auction, or all 3. Did anyone from your team have a conversation with the winner immediately after the purchase? Your bidder may still back out, but make sure you’ve done all you can, because trying to sell an item after the event can be a headache.

If you’ve tried your best to be diplomatic and solve the issue to no avail, ask the person who no longer wants their live auction item if they’d like to donate the item back and instead make a 100% tax-deductible straight donation to your organization. I’ve seen this done multiple times.

If you still end up with the auction item, you now have to monetize it somehow.

  1. Is there an upcoming event you can use it for? Will the expiration (if applicable) still be far enough in advance? If that event isn’t suited for this size or type of prize as a live auction item, could it become a raffle that you sell chances to win for over time? (check your local raffle statutes).
  2. Can you sell it internally, to a board member or staff member or volunteer?
  3. If you have to open it back up for bidding or buying, try the guests who were in the room and heard the promotion/saw the images.
    Email every table host individually and say something like
    “Thank you for attending and supporting us! We had a wonderful night and are so thankful for you and your guests.We have some exciting news! We have something in the works where guests may be able to still place a bid for a _________________ valued up to _____________. We’ve spoken with (donor) and the offering would be___________________________. (Our auctioneer thinks) there may have been a guest at your table bidding during the Live Auction, and we wanted to extend this opportunity. If you know of a guest who had been bidding, we’d love to share this updated info with him or her.”

If you don’t get any responses from that, you can put the item on your website or an online bidding platform to find a new offer (or two or three).

As I said to my client, “I’m sorry this happened. Sometimes people are…people.” 

Categories: Better Buyers, Board members, Consulting, GALA GAL Case Study, Live Auctions