Auction strategies

[FISH4BUGS]

I am watching an auction on the GB site, and it is a gun that I really want.
With just a couple of days left, I am about to jump in, and put in a bid that is the most I want to pay.
I will assume that the bid will be sufficient to win....mainly I will overpay a bit to get the gun.....but then you never know.
In terms of strategy, should I wait until close to the end and bid up from there or just blast everyone out of the water right now and put in my maximum bid?
I will sell a couple of guns at a significant profit (I'll do that here) so I really don't mind overpaying a bit for the gun.
I am new to auctions so I really don't know the best way to proceed.
Anyone have any thoughts?

[Iron Whittler]

Gun Broker has their 15 minute rule. Read up on it. When bidding on eBay, you can wait to the last minute to bid. The last few seconds sniping is allowed. Of course ebay with their head up a lower extremity orifice doesn't allow sales of bullets, unprimed brass, primers, or powder. Very anti gun people from California.

[lightman]

I'm also curious about this. I'm watching something on Ebay right now and I'm unsure about strategy. I don't especially trust Ebay, or GB either, but I'm thinking about taking a chance.

[Nueces]

No single auction strategy works every time, but your plan to bid the most you'll want to pay, plus some insurance, is the best overall plan in my estimation. It's what I do with my final seconds snipes on ebay. If I'm outbid, I feel relief at not paying too much.

The "Rational Man" model of economic behavior suffers from the fatal flaw that people are often irrational. Anyone who has watched contentious bidding on ebay has seen that an early bid can bring out the clowns who put in successive bids in small increments until they reach the top bid. There's no defense against aggressive silliness, but a snipe bid works against most simple silliness.

On Gun Broker, in your case, I would put my bid in just before the 15 minute window opens.

[Love Life]

I put my max bid in and wait for the email alert.

[obssd1958]

My experience with online auctions - bid as late as you are able to, without jeopardizing your chances of having your bid accepted. (I've had something go wrong with my login, in the last 10 seconds, and missed out on a once in a lifetime rifle )
I firmly believe that if you put your bid in far enough ahead of time, someone will peck at it until they exceed it. If you put it in just before the last 15 minutes, you will avoid most of these, but not the determined bidder like yourself. Still your best shot, in my opinion.

[jmort]

I put in bid to put myself at the lowest winning bid and wait and see how the bidding shakes out. Sometimes that is enough, the single initial bid.
The GB 15 minute rule means that he who has the highest pain tolerance/deepest pocket will win every time. Got a Remington V3 Tac 13 recently and did not have to go beyond my initial, just enough, winning bid.

[RogerDat]

Because eBay allows last second bid and will only use as much of that bid as required to be the high bid it favors knowing your max price and Not giving other bidders a chance to think over beating it by a small amount. This I think makes a bid in last second a winning strategy.

The 15 minute rule I think helps the seller because it gives another highly motivated buyer a chance to outbid a late bid and offers the potential for a bidding war between the high bidders. Those can be emotionally driven and fiscally perilous.

You avoid that peril by doing exactly what the OP said. Knowing your max price, putting the bid in as late as possible and letting the chips fall where they will. If someone else wants it more and is willing to spend more then the item is worth more to them than it is to you. Not getting it may well be the better outcome than paying a price that is significantly higher than your calm & sober assessment of max price you are willing to pay.

There was a member here who related that during an auction of a closing chain auto parts store people bid prices up above the sticker price on the merchandise despite there still being another outlet for the same chain a few miles down the road where they could purchase as much as they wished for that lower sticker price.

Knowing what it is worth in terms of market value, then any premium you add for its value to you and having that as a set max price avoids all that foolish behavior.

[country gent]

Having been going to auctions for years, though very few online. Listen to the people at them. Its no longer I got this today, Its I won this..... Auctions have become a contest to many and most have to lose at anything. You need to keep it from becoming a contest. 1) Know what the said item sells for on the market both new and used. 2) Know how high your willing to go in aspect of items availability and new used price then stand firm on it. ( don't get caught up in the contest) 3) watch whats going on with the bidding whos bidding, hesitation, amount jumped each tme. I would place my bid as late as possible in the bidding some wont scare off but the contest will be started early.

[Handloader109]

Auctions, live or on line, bring in way more than a set price of item is desirable. Also brings out the stupid in a lot of folks. Paying 25 percent more for an item you can easily obtain is silly

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[FISH4BUGS]

Knowing what it is worth in terms of market value, then any premium you add for its value to you and having that as a set max price avoids all that foolish behavior.

I think that kind of nails it.
I, of course, will be trying to get this at the lowest price possible, but then I would have to sit there at the end of the auction and pick away at small increments and cross my fingers.
Otherwise. I bid X (and maybe a bit more for insurance) and let the chips fall where they may.
If I do that I will be paying probably a couple of hundred dollars more than retail (although condition is everything and this is a relatively scarce gun in almost pristine condition).
The only thing that eases the pain of paying more than I probably should will be the sale of a couple of collector's guns here at a profit.
Thanks to all for your thoughts.

[dverna]

Whatever "strategy" you select, there are others using it as well.

I will normally put in my comfortable maximum bid and let autobid do the work.

[FISH4BUGS]

I will normally put in my comfortable maximum bid and let autobid do the work.

That is the key....."comfortable maximum bid".
Hey...it's only money, right?

[Beagle333]

I like to bid later. I believe people will peck at your bid if they can see it and try to best it, even if it goes above "fair", just to try to win.

[RogerDat]

On eBay I look at sold listings. That helps me determine a range, and median price. Provides the market value. If those prices are ones I can live with I then know about what makes sense for a bid. Maybe like the OP I am willing to pay a premium because I really want this item. Or am only willing to purchase if the price is a good deal, as in paying below or near median price.

I don't buy on eBay often. When I do it is usually to purchase something I have researched and decided to buy and eBay is an option where the item is available. Possibly used instead of new to save some money.

[Shawlerbrook]

Great advice above. GB and eBay are different animals. On GB I would place my highest bid initially, to hopefully discourage bidders that think they may get a bargain. Like said above, no one strategy works 100%. On eBay I bid low early and then if necessary snipe my highest offer at the very last second. On both sites, there is usually never something that I have to have at any, inflated price.

[dragon813gt]

Ebay, I enter my max bid and walk away. If it’s something I really want and I get a notification that I’ve been outbid I reassess my bid. Regardless I enter the max I’m willing to pay and that’s it.

I’m not a fan of GB’s 15 minute rule. Gives to much time for people to keep raising their bids. This is great for the seller. But it leads to bidding wars. I know this has been mentioned above. But like eBay I enter the max I’m willing to pay and walk away.

I do look at completed auctions to see what items are currently selling for. This way I have an idea of current market value.

[762 shooter]

I like the 15 minute rule on GB. Just like a real auction where the one who wants to pay most gets it.

I will put my first max bid early to scare off bidders looking for a deal. I have decided what I am willing to pay based on availability and wantability. Usually if there is a late bidder that beats me by the minimum bid I will test him by one minimum bid to keep him honest. When you get up past $1000 bid increments go to $25.00. Make your bids minimum bid + $6 to make him bid $50+to win.

If you are bidding on a firearm that rarely comes for sale you have to factor that in.

Sometimes you eat the bear. Sometimes the bear eats you.

762

[Engineer1911]

If you want this firearm, place a bid like you mean to buy. We are not your lifestyle coaches helping you get the best deal at an auction. YOUR best deal is the winning bid. If you know the firearm is worth $600, your max is $700, and the winner pays a $1,000; you did not lose an auction. You had common sense and won financially.

I have won auctions for about 10 S&W revolvers. Conventional wisdom states that I typically paid $150 to $200 too much. Now 3 years later, I can't afford (and refuse) to pay the price to acquire those same firearms. I will accept a 40% + profit when I decide to sell.

It is your money and your decision. We are just the enablers.

[FISH4BUGS]

If you want this firearm, place a bid like you mean to buy. We are not your lifestyle coaches helping you get the best deal at an auction. YOUR best deal is the winning bid. If you know the firearm is worth $600, your max is $700, and the winner pays a $1,000; you did not lose an auction. You had common sense and won financially.
I have won auctions for about 10 S&W revolvers. Conventional wisdom states that I typically paid $150 to $200 too much. Now 3 years later, I can't afford (and refuse) to pay the price to acquire those same firearms. I will accept a 40% + profit when I decide to sell.
It is your money and your decision. We are just the enablers.

Nor am I looking for lifestyle coaches. I can screw that up all by myself.
But your point is well taken. I also collect S&W's, Colts and early High Standards. I have bought a few over the years (only one through an auction) and could easily sell them at a profit.....not that I want to.
I usually buy in private sales.
I am ready and willing to pay a premium for this gun.....probably at least $200 ($300-400?) more than retail.
Like they say....it hurts to pay too much....but the pain DOES go away after a while.