Business & Finance Electronic Commerce

Reverse Auctions - Developing a Strategy for Successful Savings

For every one of the reverse bid auctions that are available online there are numerous ways to win using a variety of strategies.
Each one of these strategies can make a huge difference in how an auction plays out and act as the determining factor in whether you win from the start or if you're mauled at the pole position.
The factors that make up each strategy vary from one reverse auction strategy to the next and tend to be debated on a regular basis among veterans as far as which is better - and which one brings home the best deals.
There is a divide between the two factions in reverse auctions, and the names of each can give somewhat negative connotations but the name should be put aside as nothing more than common classification.
There are a lot of veteran bidders that rally toward the side of the bully tactics in reverse auctions.
These 'bullies' rally around tactics and techniques that work toward scaring off less experienced users by placing continuous bids on any item.
The primary intent is to keep other competitors from bidding when they spot how high a bully is willing to go in order to get their goods.
Bullies also work on throttling where they place a continued stream of bids as soon as another bid comes in.
Essentially, they're removing any kind of enjoyment from an auction and sending the message that they just won't quit.
A "bully" often comes into a reverse auction with the intent to win, and they are quite willing to go the distance with their bids - even if it means paying the retail price.
You may not classify yourself as a bully, but if you want a strong strategy that will give you confidence in bidding you need to be willing to also go the distance.
Those who are willing to pay up to full retail for an item have the greatest chance for success.
Lastly, a bully tries to intimidate other users by name - that being their screen name.
They use such monikers as "iwillneverstop" and "iwontstopbidding" or "justgiveup".
These tactics don't typically work on other bullies but they do tend to be effective against newcomers.
Reverse auction "thieves" are the other type.
They don't truly steal anything per say - instead they time their bids appropriately so as to come into an auction when it is near completion.
They let time be on their side as other bidders waste bids on one another.
In the few final moments of a reverse auction, the thief steps up with a fresh vault full of bids and a willingness to also go the distance.
Unless those other bidders, including bullies, have a great deal of money in reserves then the thief can often pick up the auction over everyone else without as much investment - thus increasing their savings.
Strategies develop with experience and time spent working through auctions.
A newcomer can learn a great deal watching the auctions of others, especially in how those users interact with one another, which items they go after, how often they bid and when.
If you plan on being successful in reverse auctions and pay per bid auctions then you would do well to work on a strong strategy.

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