Does Anyone Know How to Do a Quarter Auction?

[PamperedPenny]

I'm looking at doing a Quarter Auction for my February Open House. Does anyone know how to do this? I did a search and didn't find anything on the site! Thanks!

 

[janetupnorth]

There are some threads on here from the past - I'll look for a link for you.

Please make sure that you can do it in your state without a raffle license.

 

[janetupnorth]

Here is the start - more to come:

I found this on the WLPCtoo site:

I've never actually done this, but I've heard of it before so my description may not be 100% accurate but I did google it and found some details:

Ten different direct sales consultants participate and each bring 11 items or gift sets valued at anywhere between $10-$100. Each item falls into a bidding category: $10-25 1 quarter $26-50 2 quarters $51-75 3 quarters $76-up 4 quarters When you come in the door, you receive a bidding paddle with a number on it. When an item comes up for bid that you are interested in, you place the appropriate number of quarters in the basket in the middle of your table and raise your paddle. Once bidding has closed, the auctioneer reaches into a bin of chips and pulls a number. If your number is called, you win that item (for as little as $.25 up to $1.00!). The bidding goes quickly and 110 items are auctioned in just two hours. If you actually bid on every item, you would need approximately $50 in quarters. There will also be many door prizes as well as goody bags containing goodies and coupons for everyone from all of the participating consultants. Tastefully Simple Baby Crazy Pampered Chef Stampin Up Big Yellow Box Longaberger Home Interiors Tastefully Simple Replica Purses Etc. Party Lite These auctions are a lot of fun and I hope you will join in!

Yep that's about it in a nutshell... when he came to visit my team, he gave us a lot more details and tips to make it successful, but that's the gist of it!

The deal is that EACH consultant (10 direct sales consultants) are committed to bring 10 guests. There will be 100+ people at the auction. Whatever auction is up for bid, the consultant who owns that object gets ALL of the quarters from each table's bucket.

Tom also charges $2 per paddle at the entrance, too. This usually covers the rental space that they use.

To start...
Susie has been invited to one of these deals... she brings a pocket full of quarters and pays $2 at the door to get a paddle with the #4 on it.

Now to bidding...
Item #1 up for bid is a market basket from Longenberger. Susie doesn't want it, so does not put any quarters in the bucket on the table. When the bidding is closed, the auctioneer pulls #4 out of his bowl (this bowl has a chip in it with a number for all the paddles "purchased" that evening... not just the people that bid on the current item). Susie didn't bid, so another number is pulled until someone's number that DID bid is called. They win.
Good so far?

Later that evening...
Item #53 is the trifle bowl that I have up for auction. Susie decides she wants the trifle bowl and puts her 2 quarters (or whatever the cost is based on the retail value of the product) in the bucket on the table, then holds up her paddle to indicate that she has bid on the bowl. When the bidding closes and the auctioneer pulls a number out of his bowl. It is #4, so Susie wins!
Still on track?

My profit...
For the sake of arguement, let's say I only auctioned the trifle bowl. So my income from the auction of the bowl is all of the quarters people used to bid. If the trifle bowl was a hot item and 70 people bid on it, then I get $35 (70 people at 50 cents each).

Alright, that is my thought of how this thing works. I'm assuming there might be additional costs to rent the space and possibly additional income for the vendors depending on the number of paddles "purchased" at the start, right?

Laura, how did I do?

 

[janetupnorth]

Continued:

Yes. And in between each "auction", the buckets from each table are emptied in to the "Consultant's bucket". Meaning, if the auction is for the Longeberger basket, 10 tables worth of quarters would be dumped in to the Longeberger lady's bucket when the auction has ended.
Then, next is the Pampered Chef trifle bowl. Quarters are dumped in to the PC bucket. And so on.

People can buy multiple paddles, too. The paddle sales usually recoup whatever "hall rental" fees the group incurs. For instance, at a $200 rental with 10 consutlants participating, all 10 consultants MUST bring 10 guests each. 10 guests per 10 consultants = 100 guests. 100 guests buy one paddle @ $2 each = $200.
Multiple paddles sold = instant profit for consultant.
Quarters tossed = additional profit
Quarters = ability to order more products as a show = products + commission + host benefits = more free products
Eventually, after that first or second auction event, you're auctioning products purchased with your "quarter" winnings.

O.k.... now you've lost me with having buckets on each table. I was envisioning ONE table where products were auctioned one at a time - like an auction at Christie's or something. What am I missing? Does each vendor have a table? Why would quarters tossed into the bucket on my table... oh wait... Is this like I have a table where me and my guests sit and we have a bucket in the middle of the table. When the Longenberger basket is auctioned, if Susie is my guest and she wants to bid on it, she puts her quarters she is bidding into the bucket at my table. Even though it is "my" table, the quarters are going to the Longenberger consultant. After the auction for my trifle bowl is done, all the buckets from the other vendors' tables are brought and emptied into "my lap".

And for the additional paddles... if one of MY guests buys 5 paddles, then I make the additional $8. If none of my guests buy multiple paddles, then I don't make any extra, but have contributed my portion to the space rental.

Still kinda unclear what you mean by the last two lines...

But, I'm getting there.

I confused myself

Okay.
Consultants are lined up in front of the room with their products. The "MC" goes over to the first consultant, picks up their product and describes it to the audience. (side note, imagine Tom standing there saying "here we have a faux gem necklace! It's so pretty, but faux is another word for FAKE" ROFL )

The guests, are all sitting at tables in the room. On each table, is a bucket/bowl. When the item is announced by the "MC", the minimum quarter amount is announced. Quarters are dropped in to the buckets in front of the guests at their tables. Guests raise their paddles if they bid.
MC Draws a ball w/the number on it (Tom uses ping pong balls).

Winner is announced, everyone claps, people who didn't even bid are made fun of for being so cheap to not even bid a quarter on a $30 item (LOL again, what Tom does ).

A random chosen person (or one of the other consultants) goes around to each table and dumps ALL of the quarters in to the consultant's bucket whose item was just auctioned off. Item is then given to the winner.

And then the MC announces/describes the next item up for bid...

O.k... it is now making sense. (Of course, the images of Tom would probably be funnier if I knew who he was, but I get the idea! ) Now, how often does he do this? Is it just the auction or do the consultants have "display tables" setup to take orders as well?

WOW! $300 profit seems pretty darn good for a night of quarter throwing! That could be a really neat (and different) fund-raiser!

Anyone have any tips on how to get something like this started????

 

[janetupnorth]

That's pretty much it but make sure it is allowed in your area.

 

[nicki25]

The quarter auction that I am involved with has a contract that we have to sign and resign every year to be able to participate. We also pay a fee of $35 or 50 for the year. The contract and money go to the lady that started the whole thing. I think you have go through this lady to be legal to do it. At least that is the way it works with the one I am involved in.

 

[janetupnorth]

The quarter auction that I am involved with has a contract that we have to sign and resign every year to be able to participate. We also pay a fee of $35 or 50 for the year. The contract and money go to the lady that started the whole thing. I think you have go through this lady to be legal to do it. At least that is the way it works with the one I am involved in.

That lady prbably takes care of the licensing and reporting for you.

 

[chefmeg]

OK-I understand the concept, but why would you want to do this? Is there tremendous profit that I am missing here? Name recognition and leads?
Seems to me that you would have to purchase the items up front and you would have to do that as an individual order to be on the up and up about it, so where is the profit?? HELP me understand!

 

[chefann]

Many people use items they've earned free, so there isn't any up front cost. And the party atmosphere gets people excited. So they place orders for the things they didn't win.

 

[chefmeg]

I guess I would need to know how much up front cost and then what kind of profit would come from it......

Anyone done these that would like to share why, not how????

 

[chefann]

It gets people excited about the products, so they book shows. And many people place orders that night.My cluster did a couple of these a couple of years ago. The first one or two you do, people will still be getting used to the concept. But then they'll start asking when the next one is. We used ours as a way to introduce new products to entice past hosts to book again. Generally, each table full of guests generated enough orders to submit as a show, which "their" consultant got to submit.

 

[chefmeg]

how do we find out if it is allowed in our state? which "agency" would handle something like that?

 

[chefann]

It would be the department that handles raffles and games of chance. Your state government website should have contact information.

 

[PamperedPenny]

thanks guys for all your help. I'll check into the licensing for MD. It always amazes what the government wants to control. Anyways, the reason I want to do it is instead of an open house. It will offset the cost for me, and I'm doing it with my downline, so that should help too.

I agree, I think it will get people excited, and it's something different.

Thanks again!