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Innovative auctions

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Innovative auctions

  1. 1. “Innovative Auctions” 1. Why was Buffett so successfulwith the auctions? Buffet becomes successfulby Auction. Auction is a valuable commodity, and it provides greater access (larger potential customer pool). An online auction for the chance to break bread with the Oracleof Omaha took in justover $1 million this past week. That’s the lowestprice since investor Mohnish Pabrai and two friends won with a $650,100bid in 2007, and an astonishing 71 percent discount below the $3.45 million paid by last year’s winner for lunch at a Manhattan steakhouse. This year’s winner—oneof eight contenders—choseto remain anonymous. Proceeds go to Glide, a San Francisco charity supported by Buffett’s first wifefor many years. 2.You can place your item for sale on EBay without a trading assistant and save on the commission. Why do people use Dan’s services? He provides information and expertise that customers feel is worth the price. you can and most people DO list their own items. Open an account on eBay and go to eBays homepage, click on 'Sell' at the top of the page. It will explain exactly what you have to do. You'll need a camera for photos of your item, make an honest, thorough description of your item, calculate your postagecosts and follow the instructions. 3. What are the advantages of fundraisingvia auctions? As sites like eBay haveproven, online auctions are extremely popular. More and more, people are including online auctions as a firstchoice for purchases. The
  2. 2. popularity of online auctions has not been lost on the fundraising crowd. In fact, entire companies and websites have been built purely to serve the needs of online fundraising auctions. Many organizations arecoming to realize somereal advantages of choosing online fundraising auctions to raisemoney for their groups. A few of the reasons why online fundraiser auctions havegrown in popularity are • Fresh ideas – many traditional fundraising options might be viewed as boring and stale; online fundraising auctions offer something fresh and new for volunteers and supporters • Costeffectiveness – products aside, the costs of hosting an online fundraising auction are very low; mostgroups search for in-kind donations from group members and business supporters, though, so even with the productincluded, there is still very little expense involved in running an online auction fundraiser • Profitpotential – with a good product mix, online auctions can profitvery handsomely. Since there is no pre-setprice for items, the potential sale price can grow continually in responseto consumer demand • Productvariety – a variety of products can easily be auctioned to suit the tastes of many different kinds of bidders: signed sports memorabilia, event tickets, art, etc. • Outreach – there is no geographical limit to the consumer basefor online auction fundraisers; supporterscan beacross the roomor across the world • Expansion – options like advertising and sponsorshipsincreasetheprofitability of online fundraising auctions • Availability – the internet is open 24 hours a day, 7 days a week; that means that online auctions are open 24/7, too.

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