Online Auction Bidding Strategies
So you’ve set your eyes on an auction item that would be perfect for your home or business. The only thing that stands between you and a great buy are other bidders. As soon as your competitive drive kicks in, it’s easy to become emotionally invested in the auction. To avoid the so called “winner’s curse” where you wind up spending more than you originally planned, it’s important to establish a bidding strategy beforehand and stick to it. Wondering how to win online auctions? There are a few strategic approaches to bidding:
Set a maximum
Auction Masters makes it easy to avoid adrenaline fueled bidding wars with a maximum bid input option. It works like this – if other people are bidding well below your set maximum price, you will always have the top bid. Once the bidding surpasses your set amount, you no longer are in the running. This allows you to research the item, decide your own price and possibly pay less than you expected. If you want to minimize regrets, give this strategy a shot.
Cut it close
Some people believe that bidding in an auction automatically draws attention to it. This could be a bad thing as a buyer since more attention means more competition. If you think about it, this idea makes sense. Imagine a street with several restaurants. You’re more likely to dine at one that seems busy and full of people, even if the wait is longer. After all, there must be a reason everyone is there, right? The same theory holds in an online auction. The stealthier you can be, the more steals you’ll find.
Avoid round bids
If you set your maximum bid at an even dollar amount, you stand less of a chance of winning an item. People tend to think in round numbers, so you gain an advantage setting a maximum bid of $101.27 on an item that you expect to go for around $100. Sure, you’re spending a little more money, but that edge is usually worth it. The only issue you may run into is other people doing the same thing. Since you cannot see their maximum bid, you need to find the right price balance between not enough and a little extra.
Show that you mean business
Sometimes auctions will start at a much lower price than you think an item is worth. As a serious buyer, you want to weed out any bargain hunters before they create a buzz around the auction. Otherwise, they may drive the price higher than you’re willing to pay. You can mitigate these situations by immediately raising the bid price to a level closer to your maximum bid. That way, you show that you are serious about the item. The people who are just looking for a ridiculously low price are forced to search elsewhere. Remember to leave some room between your initial bid and your maximum. You’re only eliminating the lowest competitors and you may still need to raise your bid against other serious buyers.
However you decide to bid in an online auction, always stay true to your strategy. If the price goes above your budget, you are better off walking away. Put thought into every bid you make. We hold auctions so frequently that your disciplined approach is bound to pay off sooner or later. It takes practice, but soon enough you will learn how to get what you want for an incredible price.