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Infographic: Flat or Percentage Fee?

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In business, trends come and go. Part of what makes a company great is their ability to discern which trends have value before leaping to embrace them. One of our key beliefs at ClickBid is that simplicity and efficiency are the first benchmarks before any and every update we release. In today’s mobile bidding space, a payment model that’s gaining popularity is the percentage cost instead of a flat fee. Essentially, instead of being given an upfront cost, you are charged a percentage of your earnings post-event. While an enticing offer, it’s one of the trends that ClickBid has strategically chosen not to adopt. Here are the main reasons we believe a percentage fee can detract from an organization’s overall experience with mobile bidding.

Flat Fee is better than Pay As You Go PricingThe Amount of Variables is Overwhelming

Preparing your event requires time in and of itself. Part of the appeal for working with a mobile bidding company is their ability to assist in that workload. However, negotiating and understanding a percentage based fee oftentimes places more work on your plate. It means the extra math of estimating ticket sales, attendance, and auction proceeds in order to calculate the cost of that percentage fee. Additionally, these projections will need to be reasonably accurate while still weeks and months from your event date. Finally, mobile bidding companies themselves can confuse the process more with varying policies on fee caps or payment limitations on cards vs checks. The bottom line is that it frequently introduces an unnecessary amount of variables and extra work. Whether personally researching mobile bidding services or reporting to your organization, the question of cost should always come with a simple answer.

Same Quality, Same Service, Higher Cost?

We commend our organizations for successful events. Yes, our mobile bidding software is a valuable tool, but we cannot take 100% of the credit. When all is considered, item donations represent the relationships you’ve garnered, the action you’ve inspired, as well as the causes you’ve championed. In so many words, a flat fee rate shows a respect for that. Whether you raised hundreds or thousands, why should a company charge you a greater fee for providing the same exact service? If you hire catering or a live band, the charge doesn’t vary depending upon the guest’s enjoyment. In the same way, what a mobile bidding company provides should remain unchanged in service and quality regardless. The pricing is best when it reflects that promise and respects your event’s success.

Mobile Bidding Made Simple

Companies pitch percentage fees well. The option to pay later rather than paying upfront is a tempting trend. However, we courage clients to fully assess whether it’s truly best for their event. ClickBid has been purposeful in adhering to our flat fee system. Our goal was to create a product that’s simple to purchase and simple to use. We’ve chosen this structure because we want to assist in your workload, not add to it with projections and paperwork. We offer a flat fee because we believe your success is your own. We’ve chosen a flat fee because our goal is always to place you first.

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