Five areas to cut costs in your auction gala

This group opted to forgo a florist and made their own gorgeous centerpieces.

How many times have we heard that adage that you must spend money to make money?

During the 2008 recession when companies cut back on travel, SuccessfulMeetings.com posted this article, “Business Travel Study: Companies That Spend More, Make More.”

The article shared the results of a 10-year study funded by the National Business Travel Association.  The study found that for every $1 spent on business travel, over $15 could be earned.

The report cautioned that under-spending on travel during a recession could cause companies to lose out on profit.  “Find some other area with less impressive ROI to eliminate,” the metrics seem to suggest.

Groups planning an auction fundraiser may wish to consider this line of thinking.  If a budget reduction is in order, reduce expenses in areas that have hard-to-prove ROI. 

Here are 5 cost-cutting areas my clients have targeted.

1. Create your own floral arrangements instead of hiring a florist
2. Shrink the auction catalog to a “one-pager” or a folded 8.5 x 11” sheet
3. Shift from a plated dinner to a family-style service or even to a buffet.  (A caution that a buffet adds complexity to most timelines.)
4. Use a DJ instead of a band.
5. Eliminate extra entertainment, like comedians.  Or even eliminate the DJ entirely.  After an organization and I worked together for a year, they said the live auction was entertaining enough without the added cost of entertainment.

Recognize that cutting some areas of your auction budget will have a more harmful effect than cutting other areas. 

For instance, if you’re conducting a live auction and don’t care how much money the auction makes, how items are represented, or how the program is run, you could eliminate using a professional auctioneer. (Though I wonder, if so little effort is put on the live auction, why bother having an auction at all?)

On the flip side, if there is some risk riding on your auction — either because you need to hit a certain financial goal or because you have VIPs in the room – I wouldn’t eliminate the one professional who has experience in engaging a crowd and getting them to spend money.