We are often asked by nonprofit fundraisers to compare our program to the fixed-price consignment auction packages they’ve used (and typically had bad experiences with).
Below we explain fixed-price consignment’s shortcomings and how TravelPledge is different.
What Is Fixed-price Consignment?
“Fixed-price” consignment is an agreement for the auction organizer to pay the consignment item supplier a predetermined price after the item is sold.
The goal of the auction organizer is to obtain a winning bid on the consignment item that exceeds their predetermined cost.
For example, if the consignment price is $5,000, and the item sells at the auction for $6,000, then the nonprofit pays the consignment item supplier $5,000 and pockets the remaining $1,000 as the net donation.
If the item does not sell, there is no charge.
Why Fixed-price Consignment Risky for Nonprofits?
On the surface, fixed-price consignment may seem like a great way to augment volunteers’ item procurement efforts. After all, there’s no risk, right?
Well, not exactly.
Fixed-price consignment prices are often quite high. As a result, it is difficult for many auctions to command a winning bid that generates a meaningful donation. We’ve even heard horror stories of auctions that lost money on their fixed-price consignment items.
Worse yet, if an expensive consignment item sells at the starting bid, several thousand dollars are sucked out of the room that could’ve been bid on other items.
Thus, although fixed-price consignment items are advertised as “no risk,” the risk is very real.
How Is TravelPledge Different?
Rather than paying a fixed price, your invoice on a TravelPledge experience is proportional to the size of the winning bid. You can see how this works by using the Donation Calculator on our homepage.
This guarantees that the nonprofit keeps at least 80% of the winning bid on small-ticket items, like golf foursomes:
And 40% to 60% of the winning bid on big-ticket items, like vacations:
We’ll ask for you to report the winning bid amount after your event so we can prepare your invoice. Even if the TravelPledge item sold at the starting bid, you’ll still generate a meaningful donation.
Additionally, you’ll keep 100% of the winning bid in excess of the retail value. See precisely how your invoice is calculated.
How We Do It
We partner exclusively with generous business owners who value the promotion they receive at benefit events. As a result, they are willing to donate or partially donate more auction packages to nonprofits.
Further, we keep costs very low because we never pay auctioneers to put our experiences into auctions.
While fixed-price consignment may seem to have no downside, nonprofits often lose money in foregone bids on other items.
TravelPledge’s unique model is designed so you are always happy when an item sells, even if it sells at the starting bid.