Max bid is a feature for online bidding whereas you don’t have to come back to your computer, cell phone or notepad, every time someone places a bid. It allows you to place a maximum amount that you are willing to pay for an item.
There are dozens of online bidding platforms that allow you to do this. There are two that come to mind: www.auctionflexbidopia.com and www.proxibid.com . Again, there are many others out there. You may want to search Google to get a better feel. If you are a buyer, you really don’t have any control as to which platform is being used. Some auctioneers will use a particular platform for the type of asset being sold rather than using the same platform over and over.
There is usually a column on the software platform you are using that allows you to do this at the time you register and start bidding. No one can see this amount. It’s all confidential, not even the seller can see this dollar amount. Once entered the auction software will bid for you at pre-set increments, up to your maximum bid. You could be traveling, on vacation or in a meeting while the auction is in progress. So, this is a great feature but keep in mind, you are not required to use this feature.
The incremental bid increase is usually set by the software being used. It could be $5.00, $10.00 or $100.00 increments and up, depending upon the value of the asset that you are bidding on. Let me use an example.
Your opening bid on a particular item is $25.00. You set your maximum bid at $50.00. The incremental bidding for this item is $5.00. Billy Bob sees your bid at $25.00, so he bids $30.00. Billy Bob can’t bid $26.00 or $27.50 or any other value below $30.00 because each bid must be increased by $5.00 according to a pre-set function in the software. Therefore Billy Bob must bid $30.00.
The software sees this and automatically increases your bid to $35.00, the next $5.00 bid level. Billy Bob or someone else can raise that bid but then it must be at the $40.00 level.
Betty Jo has been watching this item to see how much interest there is in this item. About 30 minutes before the auction is scheduled to close, Betty Jo enters a bid at $40.00. The software immediately changes your bid to $45.00. Betty Jo waits until the last minute of the auction and enters a $50.00 bid. Since your max bid was first set at $50.00, the software will show you at $50.00 and not Betty Jo.
Betty Jo, Billy Bob and other bidders, will have to bid $55.00 to stay in the game. For you to stay in the game you must “manually” enter $60.00 if Betty Jo enters $55.00 because you had reached your maximum bid and the software will not now bid for you since you reached your max bid of $50.00. (You could set another max bid figure.) If you, or anyone else, does not increase their bid, Betty Jo will be the high bidder.
You will receive emails as you are out bid. In most cases, if bidding activity is going on in the last minute of the auction, the bidding could be extended for five minutes or so. Check with the Terms and Conditions of the auction to know for sure.
Still have questions about placing an online auction max bid? Give us a call at 252-257-4822.