Quote:
Originally Posted by Stonepony
Any thoughts on bidding incements in the larger auctions? Specifically the 10% increment rule. I wonder at times if this hurts the consignor and final gavel price. For instance in Goodwins last auction an item went to "X" amount and closed there. I was willing to up the bid a couple hundred dollars but the 10% required increment ( plus the 20% buyers premium) was more than I wanted to go. If I had been allowed to up the bid at a lower increment its possible the eventual buyer would have outbid me again. Either way- consignor and aution house lost out on $ because 10% was too big a jump for me personally. Is there data showing that higher increments of bidding = higher gavel prices?
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I see exactly what you're saying, and I've experienced the same thing (ie. not bidding again because it's such a large jump). I'd imagine that the AHs have found this is the model that yields the best closing prices overall, which is why they all use it.
Sure, you are not willing to go one bid higher, but it's the same bidding system that already got the item's price to such a high level, so it already worked successfully for the AH (and consignor) to some extent.
You can also, as a bidder, use it to your advantage by figuring out that threshold of "how much is too much" for a card, and then placing a bid very early in the auction to occupy that bidding increment. Of course, this does not account for ego, which is why some items sell for insane prices.
Oh yeah, and before i forget... nice Ruth, Leon!