I prefer Buy It Now purchases, and I even ask for discounts and occasionally get them. I’m bummed when it’s something I want, and it’s an actual auction.
I’ve done a few LiveAuctioneers auctions, and they have a process similar to what @BwanaBob is talking about. It works fine. And if you’re in a faraway timezone, you just have to adjust your schedule if you care.
That is odd. Somebody bid exactly 100, then someone bid exactly 102.50, then someone bid exactly 105, then someone bid … some unknown amount, at least 107.50. No reason for those two guys to carefully increase the bid just by eBay’s allowed minimum. (The required increment increases from $1 to $2.50 at the $100 mark.)
I often put in a low bid early rather than bookmarking the item. Make a note of when the auction ends, and plan to raise the bid later. The early low bid doesn’t affect anything.
I’ve done online auctions run by a number of different people. At least two did the “extend the time if a new bid comes in” thing. One, which caters to puzzle collectors around the globe, extends the time for a full day for every item that had a price change today. So your bid needs to hold for a day for you to win. He gets very high prices on some items. But it’s certainly a low-stress system to deal with.
I would want it because I get constantly sniped even though I’ve made a reasonable bid. I think all bidders should have shots at counterbidding until all but one cry uncle. But I doubt they’ll change the model now.
Extending a day just prolongs the problem.
In my world:
Final bidding commences at time T (as listed in the offering).
When time T hits, all bidders have 15 seconds to bid higher than the current highest bid. If no one bids, the current highest bids wins. If someone does bid higher, the 15 second clock is reset. Eventually there will be a 15 second block where no one else bids (no one wants to bid anymore). And again, at that point, the auction is over and the highest bidder wins.
Then you should have bid higher. I’m not sure why your method would be better for you. The person who sniped you would still have bid more. You bid the max you are willing to pay, if someone else gets it, they would have gotten it no matter the auction format.
In my hot and heavy eBay days I would get into bidding wars, sometimes paying above retail. Now I bid once the most I’m willing to pay and leave it.
Extending a day means that people in SF, NYC, London, Amsterdam, and Tokyo are all in an equal footing, and no one needs to stress about the time. And yes, people are bidding in all those cities. Just check your auction once a day.
eBay reminded me the end of the auction was coming. The bidding was above $500. I’m mildly curious what it sold for.
$1,381, plus shipping. Yeah, i didn’t want it for that price. My bidding strategy worked great.
The maximum I am willing to pay can be non trivial for a considered purchase.
So I want to buy a widget…
My “break even price” is $100; that’s the absolute maximum, such that I would have nagging doubts after paying that much. Heck, if I won the auction for $100, and someone were to immediately offer me that same amount of money to buy it back from me, I’d be very tempted and might need to flip a coin to decide. This is how much it’s the tippety-toppity of what I would ever possibly pay.
Meanwhile my “feel good price” is $70.
$70 or less feels clearly like a good deal to me and I wouldn’t give it a second thought.
Between 70-100 dollars is the zone of decreasing happiness.
So what to bid in an auction?
Well it depends on several external factors and what strategy I choose to use. But if I were to bid, say, $78, and then lose to a sniper at $78.20, it’s not irrational to be disappointed. It’s a bad strategy to always bid the break even price.
Because bidding is not cut and dried as you paint it. Many people do not set a max before hand. By instinct they decide if they want to counterbid during the actual auction.
Again, it sounds like you like the eBay system, fine, but it is not a true auction. Ebay uses a timestamp as a gavel drop; that is not how real auctions work.
There are many types of auctions. I think eBay auctions are real. It’s just that there are other types of auctions. In particular, live auctions work differently, because they have a different set of physical constraints.
…and, by and large, a different user base.
But i think the physical constraints are what led eBay to start with an “ends at this moment” model, and live auctions to use a “wait some period of time for the next bid” model.
No doubt. But they are also catering to an audience not accustomed to things as wish-washy as a movable deadline.
I dunno, i think they set that expectation. I have engaged in several on-line auctions that remain open until some amount of time has passed with no new bids. They differ from eBay mostly in being smaller, and so having less rigorous technical requirements.
Great explanation there @Mijin. Thank you.
That answer, which you surely know, and almost said, is that you bid some low number as your opener and set a max bid of $100. And because of the way eBay works, if the highest other bidder or sniper comes in at 78.20, you’ll get the goods for whatever the minimum bump is, probably a buck more or 79.20. If somebody bids or snipes above $100, it’s theirs.
Now if eBay worked such that there aren’t contingent max bids, just your bid of the moment, so like an open outcry auction, then @BwanaBob would have a point.
IOW, many people don’t think, they emote. They’re not buying goods, they’re playing a form of competitive gambling game. Which, as Las Vegas can attest, can be an entertaining way to spend both time and money. But it isn’t commerce.
Thanks. I’m not 100% sure you got my point though, so I’ll try to clarify.
If you’re only going to take part in one auction in your life, and it’s for an item that you know will never be available again, then yes, set your max bid as the break even price (do you even need to set an opener bid on ebay? I thought it did that automatically)
But for most of us, who will take part in multiple auctions, and come across other ways of obtaining an item sporadically and unpredictably, it’s not a good lifetime strategy to always bid the break even price. Bear in mind most people will not even know the break even price, because they can’t put a precise value on the utility of some item, but it will be crazy high compared to the typical kind of deal that they would be trying to make. You would often be making costly deals.
The critical point is this: there is no single line that divides the price point “100% happy to buy” and “100% happy to walk away”. There’s a big, flabby, gray area of prices in the middle. And exactly where you put your maximum bid on a given day depends on your particular risk strategy.
I get it now. Makes sense.
I am not a big eBay user, such that my own experience is not necessarily a good guide. If part of the “fun” is getting something cheaper than expected, then for sure setting your max bid at your “point of indifference” to use the technical term isn’t optimal play for recreational purposes.
Which sorta loops back to my crude taxonomy of the bidder population in post #33.