What are some bidding techniques to apply at auctions in the Philippines?
- Budget limit of bidders
- Know the number of bidders
- Be sensitive to the body language of others
- Don’t Bid at Minimum Auction Price
- Auction Squatting
The environment of an auction room is so much more than just people waiting to place their bids and win their desired item. Underneath the chaotic milieu of auctions in the Philippines, lies a social setting where people tune themselves in a certain manner to win.
If you can read your environment, then you have a greater chance of acquiring all your auctions. Auction houses are not like car buy and sell stores where you simply focus on the item. Here are a few things you need to take note of when you enter an auction house!
Budget limit of bidders
You can know the limit of other bidders by simply listen to those who talk about their bidding strategies with their friends. But for experienced bidders, you’ll have to pay close attention to their bidding patterns and when they tend to fold or how far they would go close a bid. With knowledge or an idea of the limits of your competitors, you can identify who will be the bidders you would want to stay away from or those you can compete with. Knowing your contender is a useful strategy.
Know the number of bidders
Take the time to walk around the auction room and take note of the people around. Try to listen in on some conversation to know who are serious or casual bidders. This allows you to gain some idea of who you’ll be up against and know the size or intensity of the competition.
Be sensitive to the body language of others
This one may take some practice. What you really need to know about observing other people’s body language is that everyone has their own behavioral patterns. Seasoned bidders will be difficult to read as they tend to show little to no emotion. Recognizing the patterns of their body language will tell you if they’re close to their limit, if they’ve gone too far, or if they still have some allowance to challenge.
Some bidders may bluff just to get rid of other competitors. But bluffing is a bit of a last resort move. Bidders who usually bluff may have past their limit. Knowing when a bidder bluffs may take require some experience. But once you know that someone has bluffed, this may be your chance to step in with even just a penny to snatch the win.
Don’t Bid at Minimum Auction Price
Bidding at minimum price won’t be the best strategy if you want to win. This will make the whole process slow and throw away your strategy of constantly increasing your amount. It will give others the impression that you are playing it safe, and they will take advantage of that.
What should you do then? Place your first bid up to how much you are really willing to spend for the item. Then you can set the pace for the bidding of that certain item. If someone else bids up to half the price you set, the auction system will turn to you at the next bidding increment until someone else places their bid.
For example, the minimum bid amount for an item is P10 and you’re willing to pay P50 for that item, bid P50. Then if someone else bids up to an additional P25, the next bidding increment will have you first in line. You can simply bid P10 and win the auction at P35.
Auction sniping has been an age-old technique of bidding at an online auction. Basically, sniping means placing your bid at the last few seconds of the session. The technique of bid sniping requires constant monitoring of the session and strike at the last second before anyone else could respond fast enough. Sniping is a technique that only works for online auctions. In the Philippines, there are some online auction platforms that close the bid only when no one else can contest. These types of auction platforms cannot be sniped.
Auction squatting is the polar opposite of sniping. Instead of not showing their presence and stealing the auction at the last second, squatting involves entering an auction as early as possible and being involved by bidding at each increment up until the session ends. Auction squatters are known to have deep pockets and a large budget limit per item.
Auction squatting usually drives the price of an item to ludicrous levels. This may prevent auction sniping from occurring as the prices may reach insane amounts. Auction squatters are typically found at sessions that sell rare and unique items.
Winning an auction takes more than just a large budget. You need to be observant and know how to read the competition based on bidding patterns and the people you’re up against. This isn’t your typical buy and sell car store, the atmosphere is tough. Follow these techniques and with practice, you’ll be able to master the art of bidding.