What’s your auction strategy? If you want to get the most bang for your buck, it’s important to go into an auction with a strategy so you can increase your chances of winning without breaking the bank. Do you bid whenever you want? Is it better to bid in round numbers? These are all important questions to ask – especially if you’re bidding on an item you just can’t live without. However, keep in mind these strategies won’t guarantee that you win the auction!
1. Set Your Limit
One of the most important parts of an auction is setting your limit before you get into the thick of it. Not only does this keep you from spending more than you have because of your competitive characteristics, but it also can help direct your strategy. Depending on the substantiality of what you have to work with, you may need to take a more aggressive approach, or you may need to come to the auction with a more conservative approach.
2. Bid High
If you have already set your limit and done a little bit of research on the product, start the auction by bidding high. You want to save money though, right? Bidding high actually does tend to save money. If you have a good idea of what the item costs, use this as your base. If you start the bidding at $1, it might start a bidding war which can lead to you spending more money than if you started the auction with a high bid.
3. Be Aggressive
If you want to go for the intimidation factor, auction squatting is the way to go, though it requires a lot of dedication and patience. With the technique, you watch the auction for as long as it lasts. If someone else makes a bid, you outbid them right away. This shows that you mean business and you may even intimidate the other bidder out of wanting to make any more bids.
4. Be Specific
The human tendency is to make numbers round, especially when it comes to money. You probably won’t sell something for $11. You are much more likely to put it up for sale for $10. When it comes to bidding on an item, you want to be more specific. Don’t just increase your bid by $100 or $50. Consider increasing it by $30.17. Of course, the numbers have to do with how much you want to spend, but make sure your bidding is strategic.
5. Be Last Minute
They say that the early bird gets the worm, but that’s not always true. With auctions, it can pay off to be the VERY last bid. For example, if your opponent made a bid of 136.45, wait until the last minute to bid 136.75. This will save you money and you’ll be the dark horse of the auction. No need to outbid by $20, $50, $75, or more when you can outbid someone by just a few cents.
As you can see, it’s quite the balancing act! If you’re on the market for a classic or specialty car, sign up to receive auction notifications so you can put your new-found skills to work. Have fun!