The Psychology of Bidding.......

[chernieto]

Originally Posted by scooter729

I do like the REA method and am fine with how it is structured, with one exception. I wish the bidding increments from $500 - $1000 weren't done in $100 increments.

I remember an item last year which ended with a $500 bid. I considered bidding higher, but the next bid - $600 - is a 20% increase when going up from $500. Until you get to $1000, all increments from $500 to $1000 are increments between 10% and 20%. (Same is true for those bids under $500, but I know virtually nothing at REA sells for less than $500, so it's a bit of a moot point.) No other auction house has a bidding percentage increase to the next increment in the 15% - 20% range (that I am aware of).

What if the $50 bidding increments continued a bit higher, maybe even just to $700 or $800 if not $1000, then kicked over to $100 increments? I would imagine a smaller increment on those items in the $500 - $700 range could garner an extra bid or two, rather than taking a 20% bidding leap to the next increment. I understand most REA items are over $1000 and not even in this range, but is a valid point on those which do fall in this range.

Thanks,
Scott

I agree 20% increments at this level seem too high. As a bidder looking at a a 2k or 3k lot a lot of times I would pay 5% higher than the current bid, but give up on the larger increments.
& With REA I admit I have lost lots because I was unable to cover the "Evens" instead of "odd"s & would like to have put a Max several bid increments higher & did not time waiting for the next bid to jump back in on the preferred levels. I believe lower increments leads to more bids and bidders and higher prices for the auction house and consignors as well as better bidding for bidders.
Just one guys opinion who messed up REA bidding in the past