10:15 and Goodwin is all but over :)

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Posted By: scott brockelman

and here's why.

After observing and participating in over 100 auctions of all types over the last 10 years I see bidding patterns based on the type of auction format.

We all remember what it was like when the old format of the 30 minute rule was used in early auctions, the larger the auction got the longer it lasted, many into the early morning of the following day. It required many strategies based on where one lived, either stay up, set the alarm and get up or request callbacks, either way the person who could hold out the longest won. MANY lots sold for less than they should have, as competing bidders tired and fell asleep or just said the hell with it and went to bed. Normally these auction lots saw very little action until the last 2 hours of the auction and laid at very low prices for most of the auction. As ebay items many times do and then the bidding got a bit furious and whoever last the longest into the wee hours of the morning won. Again many people woke up to believing they were winners and found out they had lost at 4:30 a.m. and kick themselves knowing they would have paid more but thought they had the lot won. Bottom line the consignor lost out as well as the auction house.

Now fastforward to the Goodwin/REA(Mastro has also used it at times) auction of closing each lot after 30 minutes of no activity, the lots see quite a bit of spritied bidding early in the auction and right before the closing. Each bidder has essentially bid up to or near his max knowing that the end is near. Then the 30 minutes begin and said bidders either win or rebid in an effort to be the new "high bidder" not the "hold out for 2 more hours guy". Underbidders can then decide to reup the bid or go to another lot they have previously placed an intial bid on and become competitive on it. When the smoke all clears I firmly believe the highest bid had been reached, as their was an absolute deadline to declare your bid or pass. In this scenario I beleive the consignor and the auction house both are better off. I know that due to this format last night I paid MORE than I would have in the old format as I became involved on a heads up battle on 2 lots and would not let myself be outbid.

In the old format all of this would have taken hours and hours and I would not have kept getting up and checking and rebidding. The winner would have wore me down and gotten a better deal on the item.

Scott