Auction house bid increment thoughts

[pokerplyr80]

I guess I never paid attention but didn't realize until tonight that Memory Lane caps the bid increase at $1,000, even on six figure auctions. Every other site I can think of either has a 5% or 10% jump. Are there other major sites with a similar rule to that on Memory Lane? Any thoughts on what the rest of you prefer, or which is better for the buyer or consignor?

[Leon]

Originally Posted by pokerplyr80

I guess I never paid attention but didn't realize until tonight that Memory Lane caps the bid increase at $1,000, even on six figure auctions. Every other site I can think of either has a 5% or 10% jump. Are there other major sites with a similar rule to that on Memory Lane? Any thoughts on what the rest of you prefer, or which is better for the buyer or consignor?

As a buyer and consignor I prefer smaller increments....

[HotSpringsBaseball]

I agree with Leon, as buyer and cosigner, smaller increments end up making more money. Why? When bidders are not forced to increase a bid by multiple hundreds/thousands of dollars, they are more likely to keep bidding and it also allows for potential "new" bidders who would not have bid in the first place if higher increments were in place.

[frankbmd]

With smaller increments you wouldn't have to worry about auctions ending at 4AM either. They would go on for days (weeks, months).

Imagine the REA 2015 auction still being open when the 2016 auction begins, as that Wagner creeps over the $2 million mark in $5.00 jumps.

[egbeachley]

Originally Posted by HotSpringsBaseball

I agree with Leon, as buyer and cosigner, smaller increments end up making more money. Why? When bidders are not forced to increase a bid by multiple hundreds/thousands of dollars, they are more likely to keep bidding and it also allows for potential "new" bidders who would not have bid in the first place if higher increments were in place.

I disagree with this premise, it evens out in the long term. You never know if the winning bidder who just went up 10% would have won it with a 1% bid increment because the under-bidder was already at his max.

I know I've increased a full increment (say 10%) when I really wanted to go up a 1/2 increment (say 5%) or less knowing that I was likely going to win it at that level.

[BeanTown]

Originally Posted by Leon

As a buyer and consignor I prefer smaller increments....

+1

[Peter_Spaeth]

As someone who isn't usually willing to stay up until all hours of the night going back and forth, I prefer occupying the level I am comfortable with and knowing someone is going to really have to step up to a significantly higher level win. A vote for the larger increments.

[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.