A few thoughts on REA bidding

[uffda51]

The issue for me is, by how much does the winner have to top the underbidder? I've lost umpteen ebay auctions by one dollar, when a dollar represented barely more than 1% of the selling price. I've even lost ebay lots by one cent. Any winning bid should top the underbidder by at least 10% or 5%, or any other published increment that is significant. Ebay is like a videogame with prizes.

REA's increments are clearly indicated and bidders have weeks to figure out their strategy. And as a consignor, do you want the winner to top a $5000 bid by $500, for example? Or by $50? Or by $21.17?

[Abravefan11]

Originally Posted by uffda51

The issue for me is, by how much does the winner have to top the underbidder?

Bruce,

If your snipe or max bid falls short of Ebay's next bid increment, even if it is higher than the current bid it won't win.

Current Price

Bid Increment

$ 0.01 - $ 0.99 $ 0.05

$ 1.00 - $ 4.99 $ 0.25

$ 5.00 - $ 24.99 $ 0.50

$ 25.00 - $ 99.99 $ 1.00

$ 100.00 - $ 249.99 $ 2.50

$ 250.00 - $ 499.99 $ 5.00

$ 500.00 - $ 999.99 $ 10.00

$ 1000.00 - $ 2499.99 $ 25.00

$ 2500.00 - $ 4999.99 $ 50.00

$ 5000.00 and up $ 100.00

Current auction item is at $950

I set a snipe for $1,100

You set a snipe for $1,110

If I get my bid in one second before you I will win.

[M's_Fan]

Thanks for your responses everyone, some good points were made. Here is what I think:

In the example you use: The Ruth is at $10,000. You bid $11,000. And you select $12,000 as a block. If someone else bids, he can't top you without going to $13,000. If no one bids, are you willing to pay the $12,000?

Jim, I would do it this way: if the auction is at $10,000, and if I were allowed to "autobid" to $12,000, the auction should then show the high bid is currently at $11,000. If nobody else bids $12,000, then I should take it home for $11,000. If someone else comes along and bids $12,000, that should raise the price to $12,000, but I would be shown as the current high bidder since I bid first.

Bruce, you didn't likely lose umpteen eBay auctions by a dollar, you were likely just outbid, and the final price was a dollar higher than yours. You don't know what the high bidder actually bid as his high price, it could have been a dollar or thousands of dollars higher than your bid, but it would still show that the closing price was just $1 or so higher than your highest bid. Likewise, when you lose an auction on REA, you can't say that you were outbid by only $1,000 (or whatever the amount was until the next slot), because you don't know what the bidder's autobid limit was set to.

However, you make a really good point about the auction lasting too long if bid increments were tiny. I just think the current gaps are too wide, and should be cut in half. I don't think this would lengthen the auction.

I would also cut down the time added on from 15 minutes to 5 minutes. After a month to figure out what you need to bid, I don't think you need all that much more to decide if you want to up your bid if you have been outbid.