Have you ever run an online auction fundraiser and the bids come in s-l-o-w-l-y one by one? Although small increments for online auctions can provide engagement and activity it may not produce the maximum potential for the highest bids. In a standard online auction after each bid is placed the outbid bidder does receive a notification but then NEEDS to do something to then be back on top.
We at Auctria we have resolved the answer, its Max Bidding. We didn’t invent proxy bidding but we did perfect it as Max Bidding for online auction fundraising. A more descriptive term for Max Bidding bidding is automatic bidding.
Max Bidding Basics
Max bidding accelerates the bidding so more bids go higher, faster. The greater the number of bids, the higher the auction fundraiser proceeds.
Max Glossary
Max Amount: this is the maximum you are willing to bid on an auction item, this information remains confidential
Max Bid: In accordance with the bid increments, small bids are placed on your behalf up to the maximum bid amount specified
Max Bidder: a bid that is automatically placed by the on behalf of a bidder when outbid by a previous bidder
Notifications: Notifications are triggered if the maximum amount has been exceeded by another bidder or if the auction ends and you have the winning bid.
Why offer Max bidding?
Max bidding allows bidders to set a the highest price they are willing to pay for an auction item without having to “baby-sit” their bidding. When offering Max bidding auction fundraising administrators have found that auction items do go for higher prices.
Why would a bidder use a max bid?
You find an auction item you truly want to win. The bidding starts and you have a pretty good idea that the bidding will escalate with time. In a traditional bidding scenario you wait to get outbid, then place the next highest bid and this goes round and round till times up. In a max bidding scenario the bidder can place a private max bid for the maximum you are willing to pay. The system will keep the actual bid as low as possible yet provide a path to remain the winner IF the bidding stays within the max amount. If the bids do go higher than the max amount the max bidder will need to re-bid or re-max to a higher bid.
Let’s illustrate the rapid escalation and auto bid process:
Bidder Perspective
Proxy Bidder enters the highest price you're willing to pay for an item, and we do the rest. The Auctria system will then bid on your behalf – enough to keep the bidder in the lead, but only up to the maximum limit submitted.
When you place a proxy bid you are reserving all the bid amounts upto (and including) the proxy amount. When someone else places a bid it will uncover your pre-existing bid and you remain the winner at that new level.
If someone outbids you, we'll let you know so you can decide if you want to increase your maximum limit.
Administrative Perspective:
Max Bidding is a feature available for Online Auction Items only and allows the system to manage a bidder's bid to ensure that they remain as the high bidder for as long as possible. It provides a bidding mechanism to keep their actual bid as low as possible yet provide a path to remain the winner. With max bidding, if you are the highest bidder, then upon the auction's close, you become the winner. As the winner, with max bidding, you will only pay the lowest possible winning bid, which may not actually be the maximum amount you bid for an item.
Set Up Max Bidding Rules
- The "Max Bidding" defaults are set under Website → Online Bidding
- 'Yes, on by default' then max bidding is available for online items and checked by default.
- 'Yes, off by default' then max bidding is available for online items but not checked by default.
- 'No' then max bidding is not available
