Use A Raffle To Add Revenue to your Auction

The Diamond Bar is just one kind of Raffle you can use to add some variety to your event.

The “Diamond Bar Raffle”

The “Diamond Bar Raffle” is a variation of the standard raffle concept with the exception that something of value (a glass of champagne for example) is received with each raffle opportunity purchased.  The guest buys a glass of champagne, and attached to the glass is a small bag containing either a “fake” diamond (CZ) or perhaps the “real” diamond.  A jeweler supplies the real diamond and the matching fake ones.  Of course, only one of the diamonds is real, and no one knows which one it is until the jeweler, who is in attendance, checks each of the diamonds and records the bid number of the holder of the real one for later announcement.

The jeweler sets up an “appraisal station” in the cocktail area and after a buyer receives the champagne and the diamond, they take their diamond to the jeweler for appraisal.  The jeweler makes a code entry in a log to indicate if the appraisal was for the real diamond or one of the many fake ones.  Once all of the champagne glasses and diamonds are sold, the jeweler hands the bid number of the winner to the Master of Ceremonies who announces the winner of the real diamond.

The advantage of this type of raffle is that everyone wins.  Not only does the guest get a glass of champagne for their purchase, but they end up with a “diamond” of some value.  The jeweler who donates the fake and real diamonds wins because of the excellent exposure to a very select crowd, and of course the event hosts win with the additional revenue.  The jeweler also stands to sell the matching fake diamond for a set of earrings, and of course settings and other services often follow as the winner makes use of the real diamond.

The price of the ticket is determined by taking a combination of the value of the diamond, and the expected number of glasses of champagne that can be realistically sold at the event.  Depending of the “buying power” you expect from your audience, it is not unreasonable to sell the champagne (with the diamond in its bag) for $25 to $50 per glass, and to be able to sell 100 to 200 glasses depending on the size of the audience. This is a “limited ticket” raffle, which means you sell a fixed number of entries.  This allows the buyers to know their odds of winning, which makes it more attractive.

SAMPLE VERBIAGE FOR PUBLICISING THE “DIAMOND BAR” RAFFLE

Tonight we are offering a unique opportunity for you to WIN a fabulous diamond, donated by <NAME> Jewelers.  Just purchase a glass of champagne for $XX and you will receive a “diamond” which can be appraised here tonight by our jeweler.  One lucky person will have a real diamond worth $XXXX! You can’t lose because you will be making a nice contribution to our cause, and you will get a great glass of champagne, plus, you just might hold the real diamond!  Only 100 glasses will be sold, so your odds of winning are one in 100.  Buy a glass of champagne for your guest as well, and your odds of winning are one in 50!

A Word on Raffles:

 Each state has a "Gaming Commission" or an agency that regulates gambling.  Raffles in some states are illegal without a license.  Other states permit raffles, but with limitations on how much each ticket can cost, how many you can sell, and how much you can make from each raffle or annually.

Before moving forward on a raffle for your event, check with your State gaming commission or the State website to be sure you are able to comply with the rules in effect.