What Is Your Auction Strategy?

What Is Your Auction Strategy

During the past 15 years of our 36-year collecting career, approximately 55% of all the better items and high
grade cards that we have acquired have emanated from one of 15 different auction houses (albeit four are now gone). Whilst prices have
generally risen during that period, there has, as we all recognize, been a 10-25% price drop since the start of the current recession.

While said drop has enabled many former runner-ups to win, it has also changed the bidding strategy of those still
active in the hobby.We generally bid in 20-24 auctions per year, and bid on a total of 100 lots (not including E-Bay items).
Over the past four months, we have found that half the lots we bid on received our bid, and one or no others up
until the day before the auction closed. Most of these lots eventually sold in the $1000-6000 range, but had
not reached half the final bid total until the day before or the day of the auction.

Our question is when you identify an important item that you plan to bid on, when do you actually
place your initial bid? Let’s assume that the average duration of the more important auctions is 3 weeks.

Why, in your opinion, do so many collectors wait until the last day to place a bid?
We recognize that the final hours’ bidding will determine the price, but why wait until the last minute to bid?

We look forward to hearing your comments.

Bruce Dorskind
America’s Toughest Want List
bdorskind@dorskindgroup.com

[bh3443]

Good morning Bruce and thanks for starting another great thread.
I always place my initial bid(s) as soon as I possibly can. I select a few items or even a single bid so I can spend more time watching and worrying about my bid. Having 1 or a couple items to watch has been effective for the few times I've won. Take care.....

[Orioles1954]

Bruce, I usually put my "placer" bid on items I really want on the first day. On other items that I might have interest in, I monitor on a daily basis to see if they are still bargains. I am a collector on a budget, so I play it that way on necessity.

[martyogelvie]

I put my max bid in early and forget it. The only reason is i simply cannot stay up late for some of these auctions to end..

I think most of the bidders who bid late are simply enjoying the excitement of the auction.. Perhaps they have their eyes on more than one item but know tehy can only afford one or the other so they wait to see which they have a more realisitc shot at!!!! They don't bid early for fear of showing their hand in a poker game.. IMO..

FWIW, I wish I could stay up late and enjoy these auctions but know that I am probably better off financially because of it.. or perhaps not.

[Orioles1954]

Originally Posted by bh3443

Good morning Bruce and thanks for starting another great thread.
I always place my initial bid(s) as soon as I possibly can. I select a few items or even a single bid so I can spend more time watching and worrying about my bid. Having 1 or a couple items to watch has been effective for the few times I've won. Take care.....

Folks can write what they want about Bruce regarding the usage of "we", arrogance and other misgivings. However, I have no doubt he is honest and always submits insightful threads. In a strange way, "their" abrasiveness is actually a bit endearing on my end.

[Orioles1954]

Originally Posted by martyogelvie

I put my max bid in early and forget it. The only reason is i simply cannot stay up late for some of these auctions to end..

I think most of the bidders who bid late are simply enjoying the excitement of the auction.. Perhaps they have their eyes on more than one item but know tehy can only afford one or the other so they wait to see which they have a more realisitc shot at!!!! They don't bid early for fear of showing their hand in a poker game.. IMO..

FWIW, I wish I could stay up late and enjoy these auctions but know that I am probably better off financially because of it.. or perhaps not.

I also agree the auction house and their ending rules plays a factor. For example, there is no reason to place my initial bid on a B&L lot until very late in the ballgame.

[barrysloate]

I like to put my initial bids in early, then I don't bid again until the last night or until a lot is approaching my maximum. I never understood bidding numerous times on a lot before the last night, but some people feel it is a good strategy. I never stay up late so if necessary I will leave a small max bid, usually one bump at most.

[HRBAKER]

My strategy is a function of two things, a.) my trust level with the house and my money, and b.) how tired I am.

[Jim VB]

I usually bid early in the auction and then forget about it until the last day. I will admit that, on occasion, I have come to the last day and perused my watchlist and found items that I think are underpriced. This may cause me to bid on them as I eliminate others that have moved out of my price range.

[Exhibitman]

Place them ASAP as markers so I get emailed notices on them; place the final bids on the last day.

[benchod]

I agree with Barry
Place an initial bid on the lots I'm interested in and then wait for the auction close; extended bidding.
Don't understand the need to run up the price before

[Leon]

Originally Posted by benchod

I agree with Barry
Place an initial bid on the lots I'm interested in and then wait for the auction close; extended bidding.
Don't understand the need to run up the price before

The reason someone might run a price up quickly is to oust others from playing on that particular lot. Also, there might be a certain "spot" I want and I want to get there first. Generally, I put in marker bids and then watch. Like it or not I am sure the strategy B and L has used before, in allowing all lots to be bid on until the end, will continue. We have seen proof positive that it's best for consignors. Like it or not that is who auctioneers work for. Collectors (like myself) will generally bid on items we want or need, regardless of the format. I can't say how many times I have wanted to bid on something when the lot I wanted got too high, but forgot to put a marker bid in. regards

[glchen]

I agree with Leon about the strategies. Generally, I go w/ the put an earlier marker in and then bid during extended bidding. However, sometimes you know that a lot is worth X dollars. The cards in the lot are common enough that you can buy elsewhere, so you want to stake your max bid at X since at the next high bid, the lot won't be worth it anymore. Finally, sometimes you want to go with a straight bid early rather than a max bids that jumps a number of levels to knock potential bidders out of the lot.

[benchod]

I suspect there is no right or wrong answer.
In the end the lot will sell for the same regardless of your strategy

[Mark]

If it's something that I really want, I place what I would consider a fair bid early, and then I watch it. During extended hours, I am willing to bid about
%25 more.

[barrysloate]

What also plays into most bidders' strategy is the importance of the lot. Some lots are must have ones, others are simply worth a bid if they don't go too high. So one might implement a different strategy for each.

[Exhibitman]

I also rarely sit around watching an auction into the depths of the evening. I typically just plug in my final bid and that's the end of it for me, win or lose.

There have been some occasions where I know my max is a specific increment and I will lodge that bid early just to be sure I am owner of that increment.

[steve B]

Online bidding is so different from live bidding.

I'm on a budget as well, and most of my buying is from Ebay. There I seldom bid before the last few minutes, or preferably the last few seconds. If I Really want something I'll bid maybe 75% of my max just in case I miss the ending. Or for common stuff I just bid and if I don't win that's fine.

I haven't bid with any of the major auction houses, nearly everything is more than I could reasonably spend.

I do go to a few local auctions, and I prefer live bidding. It's far easier to get a feel for wether the other bidder or bidders are hitting a comfort level they won't pass.

One of the auctions has occasional big surprises. Like a 40's braves warmup jacket. Hung in a corner during preview with the plain red back facing out, put up late, and in really rough shape. Announced as Ernie Lombardis and coming from a family that was friendly with him (Yeah right, but it is huge...)
Luckily it went for very little, I'm not sure where I'd have decided to stop on that.

Steve B