Bidding at live auctions can be as simple or complex as you, the bidder, wish to make it. You’ve got choices, and power! The purpose of bidding, of course, is to place the highest purchase offer on the item at auction so you are the winning bidder. There are several bidding strategies that have been developed by auction attendees over the years that can help you get your item at the lowest price possible on that day. Here are the major bidding strategies.

• Lowball bidding is the practice of increasing the bid by the smallest amount possible to put you in place as the current high bidder. If someone has bid $10, you may bid $11 to lowball it, instead of $15. This practice is simple and logical for the bidder seeking to save money. A lowballer is reactive: he waits to see what another bidder will do, then reacts by placing another lowball bid.
• Halfballing is placing a higher bid, about halfway to the maximum price you’ve determined earlier that you will go. The idea is to startle other bidders who may be lowballing, and for you to take a comfortable lead that may win the item or at least hold it for some time. For example, if the bid is $10 and you have a $100 maximum for yourself, you bid $50. Halfballing is also called “jump bidding” because you jump over the next expected lowball bids. Halfballing begins to get into the psychology of reading other bidders. If there’s a fellow bidder that you know is also a frequent halfballer, like you, the strategy may not work well on that item.
• Maximum bidding is placing your highest bid. The idea is just to get it out there early and hope it will scare away other bidders from an item you really want and don’t mind paying more for. You can place your max bid as soon as the bidding opens, or you can wait a short while, but veteran bidders know not to wait very long as bidding fever can overtake some bidders and make your max bid less fearful to them.

When your max bid is placed, the auctioneer will not act startled. He will simply say “We have $1,000 for this item. Do I hear $1,250.” He wants to keep the bids climbing. But, other bidders will be taken aback and be quickly rethinking their strategy, asking themselves “Do I really want to go that high?’ In those moments, the auctioneer is moving forward and you are closer to winning the item. Also, to bid effectively you have to be seen clearly submitting your bid. Either the ringman or the auctioneer should be able to see your bidder number in the air.

Sit where you can be seen easily. Hold the number high and facing the ringman or auctioneer. Meet the ringman covering your section before the auction, if possible. Tell him which item you are interested in, and he will watch you closer when that item comes up for sale.

The ringman may step in closer to you and may ask you to bid certain amounts, or give you other advice. At the same time, the auctioneer is watching you and the other active bidders, while chanting the numbers he wants and that he has received.

Reprinted by permission of the National Auctioneers Association.
Source, Auction Advantage Fall 2007