Auction house bid increment thoughts

[Snapolit1]

Was wondering about the bidding increments last night on Memory Lane. I placed a new leading bid on the Gehrig Exhibits (portrait) early last night. I thought my bid, with the buyer's commission, was a pretty decent price. But the next bid up, think it was over $1000 up, pushed the card into what I would consider overpriced. Not surprisingly my bid sat until 3 am and I ultimately won. Could the underbidder have bid $300 or $500 more, I expected it was possible he would have. Seems to me that the auction houses are leaving money on the table with these increments. Particularly on items under $10,000.

[egbeachley]

Originally Posted by Snapolit1

Was wondering about the bidding increments last night on Memory Lane. I placed a new leading bid on the Gehrig Exhibits (portrait) early last night. I thought my bid, with the buyer's commission, was a pretty decent price. But the next bid up, think it was over $1000 up, pushed the card into what I would consider overpriced. Not surprisingly my bid sat until 3 am and I ultimately won. Could the underbidder have bid $300 or $500 more, I expected it was possible he would have. Seems to me that the auction houses are leaving money on the table with these increments. Particularly on items under $10,000.

Or maybe your last bid increment could have been $100 and you win at a lower level. What happened may have given the auction house extra cash, not leaving money on the table.

It works both ways and evens out in the long run.

[Snapolit1]

Very true. I just think psychologically smaller increments lead to more active bidding.

[BeanTown]

Small increments allows a bidder to bid on it while being high on another lot as Well. Most bidders have budgets. Now I'm a strong supporter of lots going off on a per lot basis. This allows the bidders to all know what time to be at their computers to start the bidding war process. Heritage, Huggins and Scott, and Hunt Ibelieve do this format.

[egbeachley]

Originally Posted by BeanTown

Small increments allows a bidder to bid on it while being high on another lot as Well.

But, using this same logic, it allows another bidder to make a small increment bid on the lot you are currently high on.

[BeanTown]

Exactly, thus I will make a small bid back at him or even jump the bid. But bottom line is the bidding war has begun and that only benefits the consignor and auction house.

Originally Posted by egbeachley

But, using this same logic, it allows another bidder to make a small increment bid on the lot you are currently high on.

[egbeachley]

Originally Posted by BeanTown

Exactly, thus I will make a small bid back at him or even jump the bid. But bottom line is the bidding war has begun and that only benefits the consignor and auction house.

But you said at first that you have a budget, hence not wanting to do a large increment. So you are unable to continue the bidding war and the auction house makes less.

Small increments or large increments even out in the long run.