A friend from Kansas and her husband flew out to visit me last month.
And this is where the story begins.
My house is undergoing a renovation so they stayed in a nearby hotel.
When I popped into the Hilton Garden Inn the first morning of their visit, I saw this in the lobby.
A silent auction!
I’d seen this type of set-up at a hotel in Ohio last year, but didn’t have time to investigate.
I walked over to see how it worked.
First, I glanced at what they were selling.
Most of it was sports and celebrity memorabilia.
(I’m leery of selling memorabilia because much of it is fake.)
This was Arnold Palmer and Jack Nicklaus “Smokin’ at the Tee” with copied signatures.
Beyond the memorabilia, there was one local themed item — an aerial photograph of Washington, D.C.
Then I looked at the bid sheets.
I noticed that the minimum raise was $10 and nearly every bid sheet had some error tied to the minimum raise. If the raise was $10, some people raised $5. If the raise was $20, some raised by $10.
(The company providing the merchandise could have avoided this confusion had they simply pre-printed the increments on the bid sheet. I’m not sure why they don’t.)
But I was confused as to how the closing worked. When did it end? It seemed fruitless to be the first bidder. After all, hotel guests checking in the next day would have an instant advantage.
That’s when I read the top of the bid sheet: “EVERY BID WINS”
Every bid?
Clearly this wasn’t a silent auction.
They might be using terms like “silent auction” and “bid.” And they might have it set up to mimic the look of a silent auction. But if everybody wins, it’s not a silent auction.
I decided to read the instructions. All of them.
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Bid sheets had this description.
EVERY BID WINS
The sooner you bid, the better the price.
Fill out your name, phone number and bid amount on the bid sheet.
Remember, EVERY BID WINS so bid early to win at the lowest price. Your bid must meet the minimum bid and minimum raise amount to be valid.
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This poster listed the benefactor and gave general instructions
(In case you can’t read the text in the photograph, here’s the content.)
Silent auction benefiting Children’s National
20% of the net proceeds from each item sold will benefit Children’s National
How to Place a Bid
- Fill in your name, phone number and bid amount on the corresponding bid sheet.
- All bidders will be contacted within two weeks of placing their bid.
- Winning bidders will have their item shipped for free.
- Every bid wins as long as you meet the minimum bid.
- Signatures are replica autographs.
How you can reach us: XXXX, Toll free XXX, Website XXXX
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This poster had full instructions
And here’s the text of the above poster.
SILENT AUCTION FREQUENTLY ASKED QUESTIONS
WHEN WILL I BE CALLED AFTER PLACING A BID?
All bidders are called within 10 days of placing a bid.HOW DOES EVERY BID WINS WORK?
This is a continuous silent auction. Each bid wins as long as the minimum bid and minimum raise is met. The first bidder will win at the lowest price. Each bidder after may also win the item, however the price will continue to rise.WHEN WILL I RECEIVE MY ITEM(S)?
Our standard delivery period is 3-4 weeks upon receiving payment. Expedited delivery is available. Additional fees may apply.HOW WILL I RECEIVE MY ITEM(S)?
We ship free through FedEx to the continental U.S. Expedited and intercontinental shipping are available. Additional fees may apply.HOW ARE CHARITY PROCEEDS CALCULATED?
Twenty percent of the net proceeds from each item sold are donated to the charity. Net proceeds are determined by taking the dollar amount paid for the item minus $15 for shipping.ARE SIGNATURES ON THE ITEMS AUTHENTIC?
Signatures on displayed items are facsimile of actual signatures. We have a wide range of authentically autographed items available if you’re interested. All items sold benefit the charity.WHAT IF I’M NOT SATISFIED WITH MY ITEM?
XXX will provide FedEx Return tag, and refund your money if you’re not 100% satisfied.WHO DO I CALL WITH QUESTIONS?
Call XXX. We provide the auction. Office hours M-F 8 – 5 Central Time. Bidder hotline XXX. Website XXX
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Three days after I saw this set-up in the Hilton Garden Inn, I was working an event three miles away at the Sheraton Suites.
Guess what was in the hotel lobby …
A “silent auction,” benefiting the same charity and run by the same auction consignment company.
Most of the merchandise was identical.
The bidding activity was about the same at both hotels.
The bid sheets looked slightly different. At the Sheraton, they called it a “progressive auction” on the bid sheets.
Conclusion
This is a fundraiser that takes little effort on behalf of the benefactor (Children’s Hospital). The consignment company is providing the items, overseeing set-up, calling the buyers, and managing questions.
If dozens or hundreds of hotels in the D.C. area have agreed to put this display in the lobby, the 20% of the net proceeds could add up to some worthy dollars!
I can see why a charity would try something like this. Low effort = high (maybe) reward.
But personally, I don’t like the way the company is running this activity.
It feels disingenuous, as though people (hotel guests) are being tricked.
This has been mislabeled as a silent auction to help the company sell items.
A silent auction ends at a specific time, at which point the highest listed bidder wins the item. In contrast, this is a small store inside a hotel lobby, selling merchandise.
To me, this is no different than a vendor who rents a kiosk and sells goods at your local mall. Depending on what time you stop by the kiosk, you might pay a bit more for the same item that your friend bought an hour ago. And because the kiosk owner is generous, he donates a portion of your sale to his favorite charity.
That’s a nice activity, but it’s not an auction.
I’d gather that for the sake of marketing, the company is falsely calling this a silent auction for two reasons.
1. Many people are familiar with the concept of a silent auction, viewing it as a way to “get a deal.” By labeling it a silent auction, it draws attention.
2. The word “auction” implies a sense of urgency to the bidding, thereby encouraging immediate action.
I’d say that this company wrote their own definition for “silent auction.”
And this also isn’t a “progressive auction.” This company is selling items to anyone. Progressive auctions often are easy to spot because you’ll often see language like “the top 3 bids win.”
In contrast, this is an EVERYONE wins.
And if I am going to be persnickety (and I will), you can’t “win” it when everyone is “buying” it.
This is a straight purchase; not a competition. (The only time I’ve witnessed competitive direct purchases were at Office Depot on Black Friday.) Hotel guests bought an item, and a portion of their sale became a donation to Children’s Medical.
This seems to lack truth in advertising, doesn’t it?
Here’s my take and a suggested name for this fundraiser: “Pop-Up Shop for the Public Good.”
In this case, the pop-up shop sells memorabilia. A percentage of each purchase is a donation to Children’s Medical, hence we are helping the public good.
What do you think?
Yea or nay on this fundraiser?
Maybe you have a better name for this activity?
P.S. There’s also something else that bothered me. It has to do with privacy.
What was to stop me — someone wandering through the hotel — from copying the names and phone numbers of the bidders, calling them up, and posing to be the company? “You’ve won! Congrats!” I’d say, “Let me get your credit card information underway so we can send this memorabilia out to you el pronto.”
It doesn’t seem all that safe.
all Karens need to jump off a cliff — you are ruining the world with your constant complaining.
the funds go to charities — so what, you are jealous you didn’t think of it yourself??
ENVY, JEALOUSY, SPITE
GO FIND SOMETHING TO DO WITH YOUR TIME!!
Volunteer at a food pantry, a soup kitchen…….but you chose to downgrade and attack a charitable cause
I could care less if they sold me gold flaked piles of dung — its going to a good cause
Whoever started this post is angry at nothing, a probably a pitiful town gossip who HAS TO SEE THE MANAGER every time they go anywhere.
May God Bless your soul and turn you into a blind mute, like Saul on the road to Damascus.
Hilton Gardens Auction is a scam. All fake and replicas.
Do you know the name of the company that arranges these “auctions”?!?
-Thanks so much!!
Yes, I do. In fact, I think there is more than one. But I won’t be listing the name here.
I stayed at a hotel in Richardson Texas a couple of weeks ago. I was attending an event and saw the nearly identical display of items shown here. Thinking I was contributing to a children’s charity, I did bid on an item. They were quick to call and to invoice me. I did ask several questions then, that the caller couldn’t answer. She assured me someone would contact me but no one did. I called again today and was told to call back later, they might have a tracking number by then. That was enough for me. I called my bank and am disputing the charge. Apparently “everyone wins” because they sell the same item to every person that bids on it. Great deal for them, not so much for the charity. Lesson learned.
Yes, you are right. It’s not a silent auction — it’s a store. You write down the price you’re willing to pay and — boom — you bought it. It annoys me that they advertise it as a silent auction.
I really appreciated your article. I have participated in two of these, both at Marriott-branded hotels, and have been relatively happy with the products, primarily because I wanted to help charity and the recipients have really enjoyed receiving the products. I don’t like that they call it a “silent auction,” in that it isn’t really an auction, it’s writing down their suggested amount and then they call you to pay for it. Oh, and if you don’t call them back right away they call you each day until you do. I have given them feedback that I think the frames are cheap and I had sensed some “mass produced” aspects of what they are “auctioning,” but until your article I didn’t realize the significance of the scam. They should clearly provide this information and not have it buried, and I also shouldn’t have to call them to get the information on their “silent auction.” Knowing that only 20% of the proceeds go to charity and that the “signed” prints are basically photocopies of the signed prints will prevent me from doing this again. You are right that this seems to be a well-orchestrated scam meant to prey on the heartstrings of well-intentioned business travelers.
You may be right about the proceeds being off-putting, though my primary point of contention was using the word “silent auction” when it isn’t an auction.
The other important element of this scam (and i call it a scam) is that a REAL silent auction run by reputable people tends to have the starting bid be somewhere at least CLOSE to the actual value of the item (if not outright way UNDER). However, if you research some of the products being sold in THIS operation, they are STARTING the opening “bids” at up to a 10,000% markup. People are caught off guard because of the charity name and the fact that a seemingly reputable hotel is allowing it.
It’s true — starting bids at my clients’ events run anywhere from 35% to 60% under the stated value of the silent auction item.
I just saw my first one of these “auctions” here in Central Texas. I almost “bid” on something because around here football is King. My Spidey or Mom sense kicked in and I googled “everyone wins auctions” and when I saw your blog and the pics that are the exact thing I was seeing on the table; well I said nope, nope, nope. I will go to Houston to the shop by NRG where the Texans play and buy my hubby a bday gift I know is legit! Thank you for your opinion of these “auctions.”
To be clear, I don’t know if this memorabilia is fake. I took issue with the activity being labeled a silent auction, as I think that language is misleading. You, however, have superhero sensitivities and decided to do a bit more research. 🙂 I suspect most folks just “bid” in the moment and think nothing more of it.
May you and your husband enjoy his special day!
You should do more research they have TMC information they would be glad to give anyone whom is concerned. I have participated with helping them out for years with my business! Just like human beings we are quick to beat something down if we do not understand it but will never call and ask any questions. But this is the world we live in would like to blog about things but never do real research. But again if it is not helping the you then it does not matter it doesnt benefit anyone in need! Yall real cute!
Kasey, I do understand silent auctions — but this isn’t one. It’s confusing to those who know what a silent auction is, or anyone who looks up the definition of “silent auction” in a dictionary.
That is not to say that this set-up doesn’t earn money for clients. It must, or the company would be out of business. There are many fundraising models a nonprofit can use to raise money. I just find this one to be misleading.
Hi, I work at a hotel in South Texas, and we were given the same line of products this year. They had to have gotten some complaints because the signing sheets clearly labelled things like the Super Bowl and World Series Rings as replicas. Other included memorabilia includes a shadowbox featuring “Babe Ruth/George Bush Autographed Ball” and prints of Ali vs The Beatles and Johnny Cash with Elvis.
The stuff looks nice enough, but it’s all clearly replicas. The Babe Ruth ball was cut in half to fit in the shadowbox!
And everyone that signs up gets one? How is that an auction? It’s a progressive sale, at best, but are these materials even worth the $120-250 they’re starting at?
I won’t make a fuss, but if a guest asks me about it, I’ll tell them the truth. That these are replicas, and you’d be paying a premium for them for charity.
That sounds like a honest approach, Gerald.
I was just contacted by Communityauctions.com saying I won 4 of the items I bid on at the Courtyard Marriott in Austin, TX. I wrote my name on 4 items as I quickly checked out of the hotel and actually got excited when I received the message informing me of my wins. Then reality hit, and I started googling and came to your article here. I think it’s very deceptive as I thought these were genuine articles and if not for your website probably would have spent $600 on worthless copies. Thank you for posting this and I’ll donate 20% of the total directly to another charity. I’m not giving my money to those that try to pull a fast one on me.
Same exact items as your posted pictures!
The fine print describes it, but the set-up does feel “off” to me — and apparently to others, who have also posted on this blog.
Just saw that in Boston. I’m now up in my room and given I did not get why that would be called a “bid” and not a “purchase” based on the FAQ, so I googled to better understand how these work and ended up on your blog!!
Exact same items offered…
I find it quite sneaky: yes the charity gets an easy 20% but that means these guys pocket 80% out of peoples’ generosity towards a kind cause.
I think you’re more observant (and/or curious) than most hotel guests, Demi, to take the time to read through it and then do some research on your own.
My daughter-in-law “won” one of these silent auctions. Thinking it was an actual auction, she made two different bids on an item. According to the “rules” she should have actually received two items; one at the lower bid and one at the higher bid. However she was only told she had to pay for the one she “won” at the higher bid. I had only heard of her involvement in this today. When I told her how this “auction” worked she was a little upset.
But in all honesty, when I first ran across this type of auction in North Carolina, I understood what was going on simply by reading the information in the bid sheet. Therefore buyer/bidder beware.
Interesting story. I wonder why they didn’t charge her for both and send both items to her. I’m guessing that either the rules were different for that auction, or the company had run out of inventory for the item she’d “bid” on.
Since writing this post, I’ve continued to see these auctions in various locations — most recently Tampa and Louisville. In general, the nonprofit is often a children’s hospital. Perhaps the company first targets them in various regions.
I’m not seeing much information on-site about the charity… that is to me the most suspicious part of this “auction”.
Its name might not be recognized across the USA, but Children’s National Medical Center is pretty well-known in D.C., Jon. The website says the hospital is ranked in the top five of children’s hospitals in the nation.
It’s quite possible that hotel guests don’t recognize the name, though, so having more information onsite might be helpful.
Many people would be dazzled by the celebrity names but would not consider the legitimacy of the items. The actual purchase model is confusing! However, anyone including the hotels’ managers would not be as knowledgeable about the system of a real silent auction and benefits for charity as we are (thanks Sherry!) I would be concerned about offending donors!
“Offending donors” — yes, per Anne Marie’s comment, there has been some push-back.
I wonder how many of the hotels realize they’re providing free space to a company selling memorabilia under the guise of a “silent auction”.
There’s that, too.
This is happening more and more in different guises. I am in Ontario and we see it as ‘art’ being auctioned under the same premise. You see an individual piece of framed art in lobbies of hospitals, banks etc. Same thing- each ‘bid’ wins. The charity receives any monies above the minimum bid which is quite high for the quality. In addition, taxes are charged on top of the bid or selling price! The company then told bidders they would only get a tax receipt if their bid was $20 or more over the minimum AND charged tax on that portion as well. We tried it at my hospital and received complaints, so I looked into it and promptly cancelled our participation.
We are now looking at offering real art, donated by local artists, with only one winning bid- a real auction!
Thank you for providing some back-end visibility to the arrangement, Anne Marie. I wasn’t privy to it and was curious as to how it worked. Though I wasn’t a fan of what I saw in the hotels, I thought, “Well, maybe they are doing well with the donations and it’s worthwhile for them.” From experience I had a feeling that collecting the money from buyers would be challenging; I could see buyers refusing to pay for the memorabilia, once they got home and had some distance between their hotel stay and bidding. And the fact you had some complaints sheds light on that, too.
Hey — good luck with your real deal auction!
Hi Sherry,
I could not agree more and while I agree it’s an easy way for the charity to gain funding , in the end, some people may cast a bad reflection on the charity itself. Which is unfair but organizations need to be conscious of their image if they want people to support their mission.
Rick
It’s a delicate balance, isn’t it? In this case, maybe the advantage of a low effort fundraiser isn’t worth it because — in the end — it’s the charity buying a bad image.
I’ve seen this and find it to be creative and yes it does have some corrections to make.
This is common in the south east part of the country. Seems to work.
Hi Art! Nice to hear from you.
I suppose it MUST work or they wouldn’t do it. But personally, it feels a little slick to me. And it’s not a silent auction, so I don’t think they should call it that.
I expect it would be easy fundraising for the chosen charity. I can’t imagine the benefiting nonprofit would have much work to do at all, other than to give the go-ahead.
This is an old thread, but since it still comes up when you research these companies, I wanted to add from the perspective of a recipient charity. There is, in fact, quite a bit of work that the charity’s volunteers have to do to facilitate this. They are required to visit tables weekly to enter the “bids”, and then they put out new sheets to start all over. They also have to drag these setups to new sites on a 6 week rotation or find room to store them while waiting for the company to find a new site. Also, all the fees come out of the non-profit’s earnings (including the shipping fee, which is pretty hefty for the size of these items).
All in all, it’s very deceptive.
Basically the company, which was named above in a comment, is using volunteers to provide free labor. If the nonprofit isn’t bringing in enough money, they will drop them. The “charity relations manager” didn’t even know the basics of what our nonprofit did, which you’d think he’d at least pretend to care about. Working with them literally felt like you were a sales associate needing to reach certain metrics so the “charity relations manager” would get his cut. Obviously our nonprofit is no longer working with them. The CEO dropped us (by email) for not meeting their revenue expectations. There was no appreciation for the amount of time, miles, effort we put in managing their tables around a huge metropolitan area. They didn’t care if they had tables on the four opposite corners of the territory, meaning it would take hours each week to manage.
Oh, and in addition to hotels, they love dive bars and sports bars, and told us specifically it was because they wanted to take advantage of people drinking, gambling and having a good time (I.e. harder to read that fine print and less inhibitions)
Based on your story, it’s surprising a nonprofit would take them up on their business model. Thanks for sharing!