How to Host a Second Chance Auction or Fire Sale: 4 Steps

Hosting an auction is an exciting way to generate revenue and find new homes for valuable items, but what happens when the bidding ends and you’re left with unsold goods? Maybe the items didn’t hit their reserve prices, or they just didn’t get as much attention as you hoped. Whatever the reason, those leftover items can quickly turn into a headache. 

But don’t worry—a second chance auction or fire sale is the perfect way to solve this problem and breathe new life into your auction. By offering those unsold items at discounted prices, you can create fresh excitement, give buyers another shot at scoring a deal, and turn missed opportunities into extra revenue.

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What is a second chance auction?

A second chance auction, also known as a fire sale auction, is a follow-up auction held after your original event to sell any remaining items that didn’t get sold. 

Typically, these auctions are smaller and more fast-paced, offering items at discounted prices to attract quick bids. Organizers often lower starting prices significantly, and in many cases, the first bidder to make an offer gets the item, making these auctions a great opportunity for buyers looking for deals.

Why host a second chance or fire sale auction?

There are several occasions when hosting a second chance or fire sale auction makes sense. For instance, you might host a second chance auction if you run into any of these scenarios:

• If you’ve recently held an auction and are left with unsold items
• If winning bidders canceled their bids last minute
• If you have duplicate items that didn’t get enough attention the first time around 
• If you haven’t reached your fundraising or revenue goals yet

In any of these situations, a fire sale becomes an easy way to recoup potential losses and push you past your initial revenue goals.

Second chance auctions aren’t just for nonprofits or schools—they’re also a great tool for corporate auction organizers, small businesses, or any organization that holds auctions and needs to move inventory quickly. By offering unsold items at discounted prices, you can attract buyers who may have missed out on the initial auction or are specifically looking for deals. Whether you’re looking to maximize your revenue or simply clear out leftover items, a second chance auction offers a simple, effective way to meet your goals while keeping your audience engaged.

Fire Sale Auction Benefits

Hosting a fire sale or second chance auction has several advantages. Not only does it give you a way to sell unsold items, but it also allows you to reach a wider audience by offering discounted prices that encourage faster sales. Plus, with the right tools and strategies in place, you can streamline the entire process and boost your revenue. 

Let’s dive a little deeper into the core benefits for everyone involved in these auctions.

For Organizers

Successful second chance auctions can help your organization, school, or business:

• Earn additional revenue after your auction ends: Similar to a paddle raise, fire sales are another opportunity to boost auction revenue after the main event is over.
• Get rid of surplus items: Duplicate and unsold items are a hassle to deal with and may discourage your team. By selling these at a second chance auction, you’ll solve this problem and make more bidders happy.‍
• Expand your audience: Lower prices (especially if they’re significantly lower) draw more people in, giving you the chance to attract potential new donors or customers.

For Bidders

From the bidder’s perspective, fire sale auctions are exciting and rewarding because of their:

• Lower prices: Everyone loves a discount! Auction items that previously didn’t get bids because bidders worried about their ability to win may be the first items sold this time due to lower prices.
• Fun fast pace: Especially if you set up your fire sale so the starting bids and buy-it-now prices are the same, your auction will run much faster, making the entire event more exciting for participants.‍
• Ability to participate from anywhere: If you host your second chance auction online or use mobile bidding, your bidders don’t even have to leave their homes to get the deals they’re after.

How to Host a Second Chance Auction or Fire Sale

Now that you know the basics, let’s cover the four steps to hosting a successful fire sale auction.

1. Set up your auction software or website

The easiest way to reach more potential buyers and sell your leftover items is by hosting your second chance auction online. Auction software, like Handbid, offers second chance or fire sale auction features that allow you to quickly relist unsold items, adjust pricing, and reopen the auction with ease. Familiarize yourself with your platform’s features and start relisting items to prepare for a fire sale.

Or, if you built your own auction website for the original event, make sure it has the flexibility to reopen with only the discounted items. This will allow you to control what’s listed, ensure proper pricing, and give buyers a smooth experience from browsing to checkout.

2. Lower the starting bids of your leftover items

One of the most common reasons items remain unsold during auctions is high starting bids. To ensure your leftover items sell in the second chance auction, lower their starting bids by a set percentage—usually between 20-30%. This discount can make items more attractive to bidders. 

To further speed up the process, you can set starting bids and buy-it-now prices at the same level, allowing the first bidder to instantly secure the item. This tactic creates urgency among buyers, encouraging quicker sales and reducing your inventory more efficiently.

3. Promote the fire sale auction

Effective promotion is key to making sure your second chance auction is a success. Start by notifying your previous auction participants—they already showed interest in your items and may be more willing to bid on discounted items. Utilize various channels such as social media, newsletters, your website, and even SMS to get the word out. 

Be sure to include key details in your promotional materials: the auction date, instructions on how to participate, and a sneak peek of the discounted items available. Highlight the limited-time nature of the event and the deals on all items, creating excitement and urgency. You can even include direct links to specific items or categories to make it easier for buyers to jump straight to what interests them most.

4. Open the second chance auction and watch the bids roll in!

Once your auction is live, keep an eye on the action. With the right auction software, you’ll have full visibility over bids, and the platform will handle much of the heavy lifting, like tracking who wins and notifying bidders. Auction software also helps simplify the payment process. It ensures that sales are finalized quickly, maximizing your revenue. 

To keep momentum going, consider sending real-time updates or reminders to your participants about items that are selling fast. This keeps excitement high and encourages more bidding activity, leading to a successful second chance auction where you clear your leftover inventory and increase your earnings.

Host Better Second Chance Auctions with Handbid

Handbid makes hosting a second chance or fire sale auction straightforward and efficient. If your recent auction ended with unsold items, Handbid allows you to reopen the auction within 30 days to sell those remaining items. The process is simple: 

1. Once your original auction is fully closed and all invoices have been generated, you can create a new category (e.g., “Fire Sale”) for unsold items and move them there. 
2. To make it easy for bidders to find, place this category at the top of your auction list in the Handbid app. 
3. Hide any items that you don’t want to be part of the second chance auction.
4. Adjust the auction’s end date, and reopen it with a click of a button!

To increase your chances of selling, we also recommend lowering the starting bids and offering a "Buy Now" option at the same price to encourage fast sales.

Beyond second-chance auctions, Handbid supports a variety of auction types, including live, online, and hybrid events. Our user-friendly platform also handles paddle raises, tracks bids in real-time, and automates payment collection, making the process smooth for both organizers and bidders. Handbid’s marketing tools also help you promote your auction to a wider audience, driving more participation and ensuring that your auction is a success. Whether you're hosting a large-scale auction or a quick fire sale, Handbid ensures a smooth and successful experience from start to finish.

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Wrapping Up

Hosting a second chance or fire sale auction is an excellent way to recover revenue from unsold items and keep the excitement going for your bidders. By following the steps outlined above and leveraging the right tools, like Handbid’s auction platform, you can ensure that your auction runs smoothly and maximizes its potential. Whether you're organizing an event for a nonprofit, school, or business, second chance auctions provide a flexible, fast-paced option to clear out inventory and achieve your goals.

For more tips on running successful auctions, check out these helpful resources from Handbid:

• 50+ Top Silent Auction Items & Ideas for Your Next Event. Discover our detailed guide on choosing the best silent auction items.
• 15 Best Silent Auction Software Options for Nonprofits Today. Learn how silent auction software can streamline your event and increase bidder engagement, then explore the top solutions available to nonprofits.‍
• How to Master the Paddle Raise: Basics + Revenue-Drivers. Explore another way to boost auction revenue—hosting a paddle raise fundraiser during your next live or hybrid event.