Posts Tagged ‘Debt Relief’

Online Auction Sites Where The Bid Lowers The Auction Price

September 25th, 2022

Imagine if you were bidding on a car or any top brand product… and your bid… did get to zero! Forget it… it won’t happen. Someone will zap it up before that possibility!

With these auctions… the item starts off at the normal sale price… and then goes down with each bid. So if it reaches a price that someone is happy to pay… that’s it… sold. Really… won… would be more accurate.

Reverse Auctions

To continue the same scenario as above,Guest Posting while an item price is being bid down… there could be twenty people biding. Out of those 20 bidders… 5 bidders may be looking at paying… say… $500 for the item. All five bidders claim the bid at $500. In this case the online auction sites use a special formula to decide the bid winner.

Another auction bid type is the unique reverse auction. As the name suggests the above scenario does not happen. The bid has to be ‘unique’. To add to that… there are two variations.

1. Highest unique bid… unmatched at the close of the auction… wins the biding.With these the maximum bid is set at a below normal sale price.

2. Lowest unique bid… has to be unmatched at the close of the auction. Another couple of bidders could of each bid… an identical lower price,but their bid would not be unique. With this type of auction the starting price would be at the normal sale price.

You can see that internet technology is the catalyst for these auctions. Offline… the purpose of an auction is to attain the highest possible bid price. The Collins Dictionary defines an auction as ‘a public sale where articles are sold to the highest bidder’. The emphasis with reverse auctions… seems to be more on its competiveness… as opposed to the actual price.