Playing to Lose on Ebay

[easysurfer]

I know this sounds backwards, but have you ever bidding on something on ebay but hope that you get outbid?

The starting price was just too good a value so I just HAD TO bid .

Now I'm in the lead with a couple of days left.

 

[Keim]

I always WANT to win, but frequently realize it is unlikely. Most bidding happens at the last minute. Rest assured, you will very likely lose.

 

[Texas Proud]

I always WANT to win, but frequently realize it is unlikely. Most bidding happens at the last minute. Rest assured, you will very likely lose.

I do not do that much on ebay, but from what I have seen the bid will go up last minute...

If there is something my sister wants, she is on the site just prior to the end of sale... lots of bidding in the last minute or two....

Now, on big items nothing might happen... I got a boat that way Well, I shouldn't say nothing happened... someone was bidding against me, but it was only one and they did not want it that bad.... still, I got a great price...

 

[zinger1457]

Unless it's a buyitnow I always use an eBay bidding snipe program to make my bids. It's a program that waits until the last few seconds to submit your bid for you. Just decide at the beginning the max I'm willing to pay and ignore it until it ends. If I find a better deal or get a change of heart before the bidding ends it's easy enough to cancel my bid on the snipe program.

 

[irishgal]

Yep, I place an "emotional" bid and a day or so later the item loses its appeal so I hope to get outbid.


Sent from my iPhone using Early Retirement Forum

 

[easysurfer]

I did get outbid. But if the price doesn't go up, tomorrow I may have to place my real "max bid"

I like that phrase, "emotional bid".

 

[Sunset]

Hopefully its not a beautiful large timeshare as some of those go incredibly cheap...

 

[frank]

what is the snipe program and where do you find it?

 

[easysurfer]

Hopefully its not a beautiful large timeshare as some of those go incredibly cheap...

No, much better than a timeshare. I bidded on a mechanical keyboard.

I just upped my bid to my final walkaway bid. Now if outbid, I won't feel bad with non-buyer's remorse. If I end up winning, I won't feel like I overpaid either (I'll worry about the "Do I really need this?" part later ).

 

[zinger1457]

what is the snipe program and where do you find it?

A snipe program (web site) submits your ebay bid for you in the very last seconds (usually around 5 seconds but can be configured) so those manually bidding usually won't have time to resubmit another bid. The security concern is that you have to give the snipe site your eBay user/password. I've been using one for over 5 years and never had any issues, I frequently change my eBay password. Google 'eBay snipe', many to choose from, I use biddingscheduler.com.

 

[stepford]

I've always wondered why anyone bids before the last few seconds. You're essentially just giving money to the seller by bidding up the item and trying to start a bidding war. Far better for the buyers if we all just dump in our bids blindly at the last minute than to compete with one another.

 

[easysurfer]

I've always wondered why anyone bids before the last few seconds. You're essentially just giving money to the seller by bidding up the item and trying to start a bidding war. Far better for the buyers if we all just dump in our bids blindly at the last minute than to compete with one another.

I think without a scheduler like that snipe program mentioned, the risk is forgetting to bid if waiting until the last minute. There is the Watchlist reminder, but that assumes I'd be online the moment for the "last call" for bidding.

 

[Keim]

I've always wondered why anyone bids before the last few seconds. You're essentially just giving money to the seller by bidding up the item and trying to start a bidding war. Far better for the buyers if we all just dump in our bids blindly at the last minute than to compete with one another.

I've always wondered why people snipe. I put in my max bid and walk away without worry. It only shows that I am one increment above the next base price/other bidder. And Ebay automatically bids for me until my max is reached. If I'm outbid so be it. Someone wanted it more than me.

 

[stepford]

I've always wondered why people snipe. I put in my max bid and walk away without worry. It only shows that I am one increment above the next base price/other bidder. And Ebay automatically bids for me until my max is reached. If I'm outbid so be it. Someone wanted it more than me.

Consider two cases:

First is the bidding strategy you describe. The alternative is to put in the same max bid 20 seconds before the auction closes. You will pay the same maximum amount in either case, but in case B you avoid the possibility of tempting competitors to outbid you and, if you win, you will likely pay less.

Your approach is fine if getting a bargain is irrelevant. For many of us Ebayers (and E-Retirers) it is not.

 

[Texas Proud]

Consider two cases:

First is the bidding strategy you describe. The alternative is to put in the same max bid 20 seconds before the auction closes. You will pay the same maximum amount in either case, but in case B you avoid the possibility of tempting competitors to outbid you and, if you win, you will likely pay less.

Your approach is fine if getting a bargain is irrelevant. For many of us Ebayers (and E-Retirers) it is not.

How does putting in a max bid 5 days till the end or 20 seconds make any difference at all If someone outbids you, then you are outbid... where is there any 'tempting' going on

It is called a max bid for a reason....

 

[stepford]

How does putting in a max bid 5 days till the end or 20 seconds make any difference at all If someone outbids you, then you are outbid... where is there any 'tempting' going on

It is called a max bid for a reason....

Because in an auction the psychology of competing bidders matters. Time and again I've seen a low starting price stay low until some fool puts in a bid... then the competition begins, the price ratchets up and the potential bargain is destroyed.

Folks that put in their true max bid and never raise it should be happy to bid at the last minute. They'd be far less likely to find a competitor making bid after bid slowly convincing themselves to go ever higher.

 

[easysurfer]

Because in an auction the psychology of competing bidders matters. Time and again I've seen a low starting price stay low until some fool puts in a bid... then the competition begins, the price ratchets up and the potential bargain is destroyed.

Folks that put in their true max bid and never raise it should be happy to bid at the last minute. They'd be far less likely to find a competitor making bid after bid slowly convincing themselves to go ever higher.

This sounds a lot like a timing vs set it and forget it thing.

A quick search yields a discussion on this very topic from.. um.. Ebay

This discussion is about how to win items on eBay, while paying the lowest price possible. Most bidders automatically assume the best bidding strategy is to place a low bid in at the last minute of the auction, but this may not always be the best strategy. Below is an exploration of the pros and cons of different bidding strategies.

Bidding Strategies: Tips for Successfully Winning Items | eBay

 

[Texas Proud]

Because in an auction the psychology of competing bidders matters. Time and again I've seen a low starting price stay low until some fool puts in a bid... then the competition begins, the price ratchets up and the potential bargain is destroyed.

Folks that put in their true max bid and never raise it should be happy to bid at the last minute. They'd be far less likely to find a competitor making bid after bid slowly convincing themselves to go ever higher.

That is probably because people think that it is better to wait till the last second to put in a bid..... not that your max bid caused the problem...


IOW, if I put in a max bid for $100 and it is listed at $10.... how is that creating any problem... someone comes and says 'that is way to low for this, I will bid more'.... and so they do... now if their max bid is $75... then it goes up to $75 quickly... it does not mean that the $10 would have won if the max bid of $100 was not entered....


And BTW, say the other person also has a $100 max bid... who will win Yep, the person who put it in first...

 

[stepford]

That is probably because people think that it is better to wait till the last second to put in a bid..... not that your max bid caused the problem...


IOW, if I put in a max bid for $100 and it is listed at $10.... how is that creating any problem... someone comes and says 'that is way to low for this, I will bid more'.... and so they do... now if their max bid is $75... then it goes up to $75 quickly... it does not mean that the $10 would have won if the max bid of $100 was not entered....


And BTW, say the other person also has a $100 max bid... who will win Yep, the person who put it in first...

If auctions transpired the way you suggest you'd never see multiple bids from the same bidder. I see them all the time. Early bidding encourages this and late bidding suppresses it.

And of course Ebay in their advice to bidders will discourage sniping. They make the most money when the selling price is highest. If you want to give Ebay and the seller more of your money be my guest.

 

[zinger1457]

IOW, if I put in a max bid for $100 and it is listed at $10.... how is that creating any problem... someone comes and says 'that is way to low for this, I will bid more'.... and so they do... now if their max bid is $75... then it goes up to $75 quickly... it does not mean that the $10 would have won if the max bid of $100 was not entered....

My experience with eBay is that many bidders don't submit a max bid, they bid whatever is needed to make them the highest bidder. They may be willing to bid $100 if needed but will only submit a bid for $10 if that's what it takes to get them to the top. If my max is $100 and I wait and submit my bid at the very last second I might get it for $12 since they won't have time to submit a higher bid. If I submit my max bid early it might cause the other bidder to drive up the bid to $100. Obviously it rarely works out that good but I found I got better results by using one of the snipe programs.

 

[Texas Proud]

My experience with eBay is that many bidders don't submit a max bid, they bid whatever is needed to make them the highest bidder. They may be willing to bid $100 if needed but will only submit a bid for $10 if that's what it takes to get them to the top. If my max is $100 and I wait and submit my bid at the very last second I might get it for $12 since they won't have time to submit a higher bid. If I submit my max bid early it might cause the other bidder to drive up the bid to $100. Obviously it rarely works out that good but I found I got better results by using one of the snipe programs.

How many times do you win something that is worth $100 for $12ish.... I would say never... now, I do not get on ebay much, so I could be way off here.... but when I was looking at stuff on there the prices were pretty close to being the same for the same item... IOW, the best you might get is $90 for a $100 item....


But, you seem to be on there more than me.... so I could be completely wrong..,

 

[easysurfer]

I've never really given much thought to different bidding strategies.

The proxy bidder, the sniper and the nibbler. Kind of sounds like a nursery rhyme . I've been more the nibbler but now like the proxy strategy (just have in mind what I'm will to pay, place my bid, then walk away).

If you are gonna snipe snipe snipe, here's something I found on the do's and don'ts:

Sniping on eBay is a controversial subject that probably shouldn't be so controversial.

Many new-to-eBay shoppers feel as though they've somehow been cheated when bids appear at the very last moment of an auction. Many regular snipers suggest that anyone that doesn't regularly snipe is at best a fool, or at worst driving up prices for everyone on eBay. Both groups often attribute whatever they don't like about sniping outcomes to supposed rampant shill bidding on eBay.

Some of the confusion in both camps stems from a misunderstanding of the automatic way that eBay bidding works in the first place and the complicated cost-benefit analysis related to sniping.

Dos and Don'ts for 'Sniping' on eBay

 

[Texas Proud]

I've never really given much thought to different bidding strategies.

The proxy bidder, the sniper and the nibbler. Kind of sounds like a nursery rhyme . I've been more the nibbler but now like the proxy strategy (just have in mind what I'm will to pay, place my bid, then walk away).

If you are gonna snipe snipe snipe, here's something I found on the do's and don'ts:



Dos and Don'ts for 'Sniping' on eBay

Yep, reading that article confirms what I was thinking.... there really is not a regular advantage from sniping... maybe an item or two that is not in demand.... but as a way to snag deals.... just not there....

And I think I will believe eBay more than the snipers.... they have more data points.....

 

[kombat]

Yep, reading that article confirms what I was thinking.... there really is not a regular advantage from sniping...

Uh, the article says: "It's true that in some cases sniping an auction rather than bidding on it outright can reduce the price at which it ultimately closes"

Obviously not in all cases, but on some obscure items, or plentiful items, it can reduce the end price at least somewhat.

I'm a regular snipe user. I would never consider bidding on an eBay auction without sniping. That's just dumb. There's absolutely no upside to bidding early. All you're doing is signalling your intentions to other potentially interested bidders.

I've found myself bidding on items before where I said, "My max price for this is $30. No more." I'd bid and be on top at $24. Then 2 minutes before the end of the auction, someone else would bid it up to $32. And I've caught myself saying, "Well... OK, I guess I'd pay $35." So I'd bid. And win it. But I could have saved $5 if I hadn't telegraphed my intentions so early.

I use a service called BidNip. Snipes only cost $0.25/ea. and you don't pay unless you win the auction. Sniping is just the way of the world regarding online auctions. There's no good reason to bid early, and potential benefits to sniping. So why wouldn't you snipe?

 

[Totoro]

Sniping is just the way of the world regarding online auctions. There's no good reason to bid early, and potential benefits to sniping. So why wouldn't you snipe?

In my experience the benefits are real.

I've played an on-line game for a few years with an auction functionality (fantasy football, buy & sell players for your team).

Due to the psychology it turns out (again, my experience) that the best prices are had when you bid in small, standard increments at the last minute within an auction.

In addition, don't bid up immediately after someone else has bid up (call it "reaction bidding"). If you display "slow and steady" behavior the most competitors seem to give up. I guess it destroys some of the random fun in the bidding process.

Worst bidding prices I've seen conversely were for items that get bid up in large steps early in the process.

This of course next to choosing the right time of day, availability of other similar items etc ..