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HOW TO BEAT THE
Competition in an
ONLINE AUCTION
a u c t i o n A N D a p p r a i s e . c o m
Bidding on items during an online auction can be entertaining. But what’s even
more fun is actually winning -- as long as ...
Actually, it’s pretty easy to win an auction item if that’s all you want to do. Just keep
bidding beyond what an item is w...
A better approach to beating the competition is developing and honing your
bidding strategy. The following suggestions wil...
Don’t needlessly drive up the price -- You’re looking through the online
auction’s catalog and – bam -- you find the item ...
Some auction experts recommend using a squatting strategy when multiple
auctions are being conducted for the item you want...
Take your time before bidding – It’s important to know all the deadlines
involved in the online auction. When does bidding...
Some auction experts believe sniping is a valid strategy and helps keep prices from
escalating. But, it depends on the typ...
Academic studies have found squatting and sniping to be equally advantageous
bidding strategies. What strategy you use dep...
About the Author
Deb Weidenhamer is President of Auctions Systems Auctioneers & Appraisers,
Inc., based in Phoenix, Arizon...
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How To Beat The Competition in an Online Auction

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Learn How To Beat The Competition in an Online Auction from Auction Systems Auctioneers & Appraisers

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Transcript of "How To Beat The Competition in an Online Auction"

  1. 1. HOW TO BEAT THE Competition in an ONLINE AUCTION a u c t i o n A N D a p p r a i s e . c o m
  2. 2. Bidding on items during an online auction can be entertaining. But what’s even more fun is actually winning -- as long as you didn’t over-pay. In addition to enjoying an online auction, most experienced bidders find them easy, economical and very satisfying. So how do you stack the deck in your favor when you bid? Beating the competition requires you understand the auction process, know the market value of items and exercise discipline when you bid. These three things are critical to winning bids. As the old adage goes, winning isn’t everything. And, that’s certainly true with online auctions.
  3. 3. Actually, it’s pretty easy to win an auction item if that’s all you want to do. Just keep bidding beyond what an item is worth! But, what good is outbidding the competition if you paid an unreasonably high price? The savvy bidders will drop out when the current bid exceeds market value. You’ll end up the winner – and left holding the bag! Actually, it’s pretty easy to win an auction item if that’s all you want to do. Just keep bidding beyond what an item is worth! But, what good is outbidding the competition if you paid an unreasonably high price? The savvy bidders will drop out when the current bid exceeds market value. You’ll end up the winner – and left holding the bag! Actually, it’s pretty easy to win an auction item if that’s all you want to do. Just keep bidding beyond what an item is worth! But, what good is outbidding the competition if you paid an unreasonably high price? The savvy bidders will drop out when the current bid exceeds market value. You’ll end up the winner – and left holding the bag! Actually, it’s pretty easy to win an auction item if that’s all you want to do. Just keep bidding beyond what an item is worth! But, what good is outbidding the competition if you paid an unreasonably high price? The savvy bidders will drop out when the current bid exceeds market value. You’ll end up the winner – and left holding the bag! Actually, it’s pretty easy to win an auction item if that’s all you want to do. Just keep bidding beyond what an item is worth! But, what good is outbidding the competition if you paid an unreasonably high price? The savvy bidders will drop out when the current bid exceeds market value. You’ll end up the winner – and left holding the bag!
  4. 4. A better approach to beating the competition is developing and honing your bidding strategy. The following suggestions will help you win bids without over- paying: Understanding buyer and seller behavior – Obviously, sellers want to get the highest price for an item while buyers want to pay the least. This dynamic has been around since the beginning of time. However, it’s amazing how many bidders forget this basic marketing principle. They get caught up in the auction excitement, have an intense desire to always win, don’t know what they’re doing, or really, really want an item. So, they buy high (and may re-sell low). Confident, knowledgeable buyers and sellers understand behavior and participate in online auctions strategically. They know if a participant is inexperienced or being naïve. Therefore, the absolute best thing you can do is educate yourself on how proven sellers sell and how successful bidders bid.
  5. 5. Don’t needlessly drive up the price -- You’re looking through the online auction’s catalog and – bam -- you find the item of your dreams! The first thing you do is stake your claim on it by placing a bid. Then another bid after someone else jumps in. Then another, and another, and before you know it, the price has jumped incredibly and the auction still has several days to go. However, some bidders enter the auction early and stay involved until bidding ends. This strategy is called “squatting.” By aggressively bidding, squatters hope to discourage excessive competition. They’re hoping prospective bidders will move on to an item with less activity. After all, you’ll often get the best price when fewer bidders bid.
  6. 6. Some auction experts recommend using a squatting strategy when multiple auctions are being conducted for the item you want. You should select the auction with the fewest number of bidders, and then bid aggressively. If you only bid the minimum amount, you’re inviting competition and you risk driving up the price. Instead, decide what you’re willing to ultimately pay for the item and bid a significant percentage of that figure.
  7. 7. Take your time before bidding – It’s important to know all the deadlines involved in the online auction. When does bidding open? When does it close? Take advantage of the time you have to place you bids. In most cases, you have the luxury of sitting back and gauging the level of interest from other bidders. However, this doesn’t mean sniping, but waiting until you see who else is interested and how high the price is going before placing your bid. Sniping refers to a bid coming in seconds before the auction closes. If you’ve ever been sniped on online auction sites like eBay, the winning bid seems to come in from nowhere. Snipers often use a software application that automatically enters the bid. Typically, manual bidders just can’t respond fast enough to outbid the sniper.
  8. 8. Some auction experts believe sniping is a valid strategy and helps keep prices from escalating. But, it depends on the type of auction whether sniping will work. For example, if an auction ends at a definitive time, sniping can win bids. If an online auction extends the closing time until several minutes have passed without a bid, sniping won’t work. This latter format is called a “soft close” auction and the intent is to discourage sniping. If an auction has a hard close, no similar auctions are taking place and the auction has multiple bidders, you may want to use a sniping strategy. Establish your maximum bid and let the sniping software do the rest. There’s no guarantee you’ll win, but you’ll probably increase your odds placing a successful bid.
  9. 9. Academic studies have found squatting and sniping to be equally advantageous bidding strategies. What strategy you use depends on a number of factors, including the type of auction, the item’s value, and how much you’re willing to spend. Finally, if you don’t use sniping or squatting techniques, experienced bidders recommend waiting until the vast majority of auction time has passed. If you study auctions before bidding, you’ll find about one-third of bids are placed in the last five to ten percent of the auction period. But in the end, an auction item always goes to the highest bidder, regardless of your bidding strategy.
  10. 10. About the Author Deb Weidenhamer is President of Auctions Systems Auctioneers & Appraisers, Inc., based in Phoenix, Arizona. They specialize in auctions and professional appraisals. Visit us at http://www.auctionANDappraise.com or call 800-801-8880 for more information about Online Auctions.
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