Charity Wine Auctions
Many of
us have heard about and read articles on the success of High Dollar
Charity Wine Auctions. Napa Valley,
Naples, and Destin Florida all have Charity Wine Auctions that gross Millions
of Dollars each and every year. Smaller Wine Events like the Rare & Fine
Wine Auction by the Wine and Food Foundation of Texas in Austin or A Vintage
Affair in Tennessee raise $300K-$400K annually.
Though
few charity wine auctions have set record highs since 2007, 2012 proved to be a
promising year, with auction organizers quick to cite the steady growth and relative
consistency of the market as reasons for encouragement. The combined total of
the 10 highest-earning events by way of live auction bidding was up 12 percent
over last year, and up 60 percent over what was raised in 2009, Wine Spectator's Lizzie Munro reports. Not all
the Auctions for 2013 are concluded yet, but for the record the top 10 in 2012 were:
(According to Wine Spectator)*
10.
Destin Charity Wine Auction with $894,000 (Though it must be noted they did 1.1
Million in 2013 a 22% increase)
9. Harmony
Gala in St Helena California- $928,000
8. Lyric
Opera of Chicago- $962,000
7. V
Foundation Wine Celebration-$1.1 Million
6. High
Museum Atlanta Wine Auction- 1.25 Million
5. Rusty
Staub Foundation Emergency Food Foundation- 1.28 Million
4.
Houston Livestock Show & Rodeo-1.4 Million
3.
Southwest Florida Wine and Food Festival- 1.5 Million
2.
Auction Napa Valley- 5 Million
1.
Naples Winter Wine Festival- 11 Million
*Self
Reported Live Auction Totals
It’s
easy to take one of two attitudes to these events. Either a “We can’t ever do
that” attitude (Because it’s too expensive or we don’t have the Expertise) or a
“Let’s get on that Train” outlook which can be very dangerous unless you know
what you are getting into. So what are
the pitfalls and the promises of a Charity Wine Auction? Can you get a share of the more than 50
Million dollars that are being raised for Charities across the United States
conducting Wine Auctions?
So what
is the difference between an 11 Million Dollar Wine Auction and a $ 364,000 Wine
Auction?
I asked
several experts on Wine Auctions to share their thoughts with me on this
lucrative but sometimes expensive type of Charity Auction. Lauren Magli,
Director of Events at Destin Charity Wine Auction Foundation, Marshall Jones,
the Executive Director, The Wine and Food Foundation of Texas, and Harvey
Kronberg, a Texas Public Policy Analyst and Auctioneer for two of the Largest
Wine Auctions in Austin Texas all had opinions. Some things they agree on and
some things they differ.
We began
with the date of the event. All three thought that the spring or the fall was
not an important issue but Marshall indicated that the calendar date was
important. “Our Auction is rarely, if ever, not
competing with another charity event the same night. Austin is not big
enough, however; to ignore the Big 3: Texas Football, SXSW and ACL
festival. To my knowledge no one has ever succeeded competing against
these events.”Lauren agreed that “The Date is more
important than the Venue,” and both believe consistency is the key. The Destin
Wine Auction is always the 4th weekend in April and they have
changed the site of the event in order to keep the date. So once you pick your
date stay with it and stay aware of the other big events in your City. Unless
you can Partner with the New Orleans Jazz and Heritage Festival or the Crewe of
Bacchus if you are in the Crescent City for example, better pick another
weekend.
When we discussed the makeup
of the committee there were differing opinions. The Destin event is primarily
staff driven with one important addition. The event makes use of high quality
well known Vintners like Jeff Smith of Hourglass Winery, Greg Lill of DeLille
Cellars and many more. Lauren was adamant that the Vintners, above all else;
including the date, venue and auctioneer was the key to success.
Marshalls event is more volunteer
driven and his committee is made up of Investment professionals (40%), real
estate professionals (10%), lobbyists (10%), wine professionals (10%),
attorneys (5%) and others (15%) all that have an almost obsessive attraction
and interest in fine wine.
So look to the experts and wine
aficionados. Find people in your community first and foremost with a passion
for Wine, Food and Spirits. We will look at the Charity Selection later but
everyone I spoke with agreed that a zealous love of Wine is the key to good
committee members.
When asked had it been their
experience that the Wine itself sells for higher than retail value at the
Auction again there was agreement. Yes. This is where Charity Wine Auctions
differ from the standard Black Tie Gala. In a Black Tie Gala lots normally go
for less than retail value. This is because people still want a bargain but
also want to feel good about their purchase.
The Texas Rare & Fine Wine Auction has averaged approximately 150%
above retail over the past three years. The Destin event had much the same
experience with their Auctioneer Dave Reynolds bringing in higher than retail
bids on lot after lot. This may be because of the Charities benefitting from
the event but it may also be the nature of Wine and Spirits as consumable
commodities in general that have a mystique to them and are hard to value. What
value do you put on an experience of opening a Bottle of Bond Pluribus Napa Valley 2007 and sharing it with your friends & family? So with the right crowd who have a passion and
knowledge for your offerings who knows how high you can go? This underscores
the involvement of Vintners and Wine Professionals in your event.
When it
comes to selecting your Auctioneer, everyone I spoke to agreed that a
Professional was critical to the Auctions success. Lauren Magli swears by Dave Reynolds of
Reynolds & Buckley as does Dick Grace of Grace Family Vineyards.
But there are literally hundreds of
Auctioneers from which to choose.
When searching for an Auctioneer, look
for someone with experience in this type of arena and a Charity Benefit
Specialist. An Automobile Auctioneer or a Cattle Auctioneer might work for his
dinner and not charge a fee, but he can be so fast that people tune out. As a
very smart Auctioneer once told me, “A Confused mind does not bid”. Avoid
amateurs at all costs as your Event is much too important. It’s also helpful to
ask for references and check with your State Auctioneers Association and/or
Licensing Body. (The Texas Auctioneers Association or the Texas Department of
Licensing and Regulation for example.)
An added advantage is an Auctioneer that brings his or her own team of
Ringmen or Bid Spotters to the event.
A mistake that one Auction in the Southeast made
was to have three Volunteer Auctioneers to “Switch Out” as the night went on.
This made the Auction go longer and longer and has Harvey Kronberg says, “Your
greatest enemy is the babysitter”. An
Auction that lasts too long destroys the momentum and makes it hard to get
guests to return.
This brings up the point of how many
lots to offer in your Fundraising Wine Auction. Some say 50. I have seen as
high as 122. My own personal experience is the smaller number (say 45-55) in the
Live Auction and about a 3 to 1 ratio in the Silent. (1 Silent Lot for every 3
guests) or so at the maximum is for the best.
This can be difficult to achieve when egos are involved from Donors who
may view the Silent Auction at “2nd Tier," but it’s a battle
that must be fought at some point.
So, even though it is a Wine Auction,
should you offer lots other than Wine? Wine Trips, Spirits, Accessories, Wine
Dinners? How do they sell?
At the Destin Florida event they
offered a dinner aboard
The World. It’s the only
private residential community-at-sea where its Residents may travel the globe
without ever leaving home. Since it first set sail in 2002, The World has
visited over 800 ports in approximately 140 countries. This was not a night aboard,
but rather Dinner and the chance to see the ship. It sold for $40,000+.
In
Austin Texas, Marshall Jones says “Wine
dinners do extremely well and Wine trips sell very well but only if they are
well thought out and planned. They must have a ‘reason’ for the trip and
cannot just be an amalgamation of experiences (wine visits, dinners) and stays
that were just donated and packaged together. Spirits do well if there
are not too many of them. We sold a premium Scotch lot to a Scot for 200%
value a few years ago! Local spirits do well in a silent auction.”
The
take- away here is that Non Wine offerings are a good idea, but only if
properly researched and right for the crowd. Perhaps the 6 foot tall bronze
statue of a naked Wine God Bacchus should be tactfully refused.
The next issue can be a tremendous
point of conversation, and can not only affect your event, but can also affect
your organization as a whole. That issue
is...The Charity you choose to partner with.
How important is the associated Charity and what should a Non-Profit
beneficiary bring to the table to ensure success? Harvey had a simple rule. The Associated
Charity should be one with enough brand awareness so that no long drawn out
explanation of what they do for the community is necessary. This does not mean
a National Charity as Lauren was quick to point out. “We always choose local
charities with local branches” she said. “The money does not go off to a
National organization in another city” One good example (certainly not the only
one) would be the Boy Scouts or Girl Scouts of America. They have a national
presence and great brand awareness, but are administered by Local Councils with
local boards of directors and Troops in your community.
The right Charity can help you garner sponsorships and donations, be great resources for manpower and
marketing for your event. And, of
course; bring in attendees above and beyond the wine and food enthusiasts.
If you are your own non-profit
considering an Auction of this type, consider partnering with another Charity
who possesses these qualities.
The
last thing I asked the group was if they could name one thing (They had to pick
one) that is the key to the success of the Auction. Then, I asked if they would name one thing
that they have done or seen done at this or any other Wine Auction they have
participated in that (for lack of a better term) was just awful? Something they
would caution anyone against doing at their Wine Auction?
Marshall
Jones credited Harvey Kronberg with the quote “The one thing that makes
a successful auction is a combination of three
things: product, people and purpose.” He continued “All three of these have
to come together to provide the one thing
that makes it all work: Energy". The room has to be electric and
full of constant energy. It cannot wax and wane. It cannot get too
high, too low or too stable. It just has to be. If I could add my
fourth ‘p’ to that mix it would be ‘permission’. People have to give
themselves permission to feel good about spending their time, money and effort
in the auction. Of course, it could all just come down to whether or not
there are enough baby-sitters available that night.”
Lauren Magli agreed with the importance of
energy but had a different “One Thing” to add. “The Vintners are the key” she
said. “Without them and their involvement you do not get lots that are as High
Quality as you want, and then you don’t get the individuals with affluence and
influence in attendance.”
What not do? Lauren and Harvey both
agreed with Marshall. He says, “Never, ever, ever keep a dying or dead lot
open. If something hits the wall, kill it and move on. Period.
I know it is tough if the nonprofit is counting on the money or if it hurts a
donors feelings, especially when the donor is in the room. Slap a minimum
on it and then kill it. Otherwise, Mr. Energy is leaving the building and
he ain’t coming back. Life is not about easy choices, it’s about making
choices.” Here again your selection of a
Licensed experienced Auctioneer is the key.
Dan Listrom a key Board member of
the Wine and Food Foundation of Texas adds to avoid sales sponsored events or
time share events of any kind. It confuses Donors and makes record keeping
difficult. He also recommends keeping all retail, small dinners or spa services
and art items in the Silent.
So go forth, Auction, Eat, Drink and
be Merry! And Raise Millions!
Good Luck!
Would you like to know more about
the fine Auctions referred to in this post?
