What The Problem with Auctions

Why do some bidders stick with their bids even if they are starting to go beyond the rationality of the sale? Why are there so many people who jump into the hype of auctions without really knowing why they do it? And why are there so many bidders who tend to get themselves caught in bidding wars while knowing that they will have to pay more than they can afford?

Bidding frenzy is a common problem in joining auctions which also makes some people reluctant in buying from such. Why is this happening and why are there some people who just can't stop even when the rationality of auctioning is crossed?

Here are three reasons behind this:

One, it may be due to the combination of arousal, excitement, competition, an overwhelming desire to win and extreme reluctance to back out.

Bidding frenzy is comparable with addiction to gambling in terms of the adrenaline rush and the continued excitement running in the psyche of the people involved. The more intense the bidding war becomes, the more interested the bidders become. 

The rush of emotions can't be discounted when trying to understand why people participate in bidding wars. At this point, it really no longer matters whether logic is working or not, what is more important is that the person is satisfied emotionally.  Also, people loose their best judgment when their minds are clouded with emotions.

Two, it may not be purely on winning the item but on testing the personal threshold of the bidder and the competitor.

People who aren't so interested in the item but get caught in the bidding war no longer feel the need to get the merchandise but the need to make the other person pay dearly when the ending price is several times over than the original price. 

Three, it may be due to the lack of experience with auctions.

Bidding wars are more commonly observed among people who are just beginning and are not backed by sufficient information on how exactly they work. It must be noted that some bidding wars are intentionally encouraged by the auction organizers themselves. This is working on the principle that the more interest the public has on the merchandise, the higher the value it receives and the more interested buyers bid on it. This does not only increase the hype over the item but also adds to its market value. 

The Auctions: A Quick Guide in Hosting a Fundraising Auctions

The Auctions: A Quick Guide in Hosting a Fundraising Auctions

A Quick Guide in Hosting a Fundraising Auctions

Any successful event needs careful planning. If you are hosting a fundraising auction, you should sit down, talk with your team, and plan for the event. 

Gather the Auction Goods

Items that will be put on sale may not be expensive and of the same kind. They can be things like handicrafts, trips, commemorative items, sports or concert tickets, and gift certificates among others.

 Get a Good Auctioneer

One secret to a successful fundraising auction is to have a lively auctioneer. He or she may not be a professional or a fast talker; a good auctioneer has to be someone who can stand on the podium and get the crowd going. Because an enthused crowd may buy anything, even the most unlovable object will be sold for a considerable amount. Get it from your group member who has the talent and skill to connect with anyone.

Let it be Known

Have the invitation set. The people that will attend the auction are the people you will expect to bid the give away money without any hesitations. So when inviting people, it is important to talk to them personally and explain what the auction is all about, its goals and mission. Understanding that the proceeds of the auction will go to a good cause will increase the possibility of getting higher bids. Do not forget to print out invitations and auction brochures or catalogues to be given away to the invited people before the bidding starts. 

Set the stage

A fundraising auction can be mixed with other event such as Sunday garden cookout, or spaghetti a dinner, or wine and cheese party. Prepare everything from food, chairs, tables, bid numbers, and stage. Your venue should be ideal to the event. If you are holding it indoors, decorations are essential.

If you are holding it outdoors, check the weather forecast. Have a backup plan in case something goes wrong. The last thing you would want is for the event to be suspended due to weather or any avoidable disaster. Nonetheless, as long as you have a good venue and people ready to shed some money for a good cause, you'll be fine. 

 

Good Deal Auctions

5 Reasons Folks Fail at Auctions

Winning something at an auction is not just about toppling all your opponents and emerging as the highest bidder. It's also about bidding wisely and making the most out of every cent you pay. Sadly, not all bidders make correct decisions and fail miserably due to their own negligence. The reasons? Read on :

1. Bidding without planning. Participants without a plan on what to do and how to do things right will likely fail at any auction they go to. The auction process is a bit tricky and confusing so come prepared. Identify the auction goods you want to buy by looking at auction brochures provided before the auction date. Do some research on the items you are interested in. You can check the price product you need like electronic product,technology,etc.Know their current market value and set your budget. Not only will it set your priorities straight, it also gives you better chances of bringing home the items you really need.
2. Buying an item blindfolded. Not literally, of course. The point is, when you are trying to buy at an auction make sure that you have carefully inspected the particular item you are interested in. Doing this will ensure that you know what you are up to and what to expect in case you win the item. It also allows you to have a set budget.
3. Going to an auction with a vague goal. People go to an auction hoping to bring home something for a bargain. But if you ask some of these people what item they want to buy, they might just say "I have no idea" or "I just bid on everything and hope to win something". When you go to an auction, you should know what you want beforehand. Have a good idea on what's on sale and prepare for it.
4. Wrong perception on how the auction process goes. An auction house can become a battle ground and participants can transform into warriors fighting to win something. But that does not mean you have to fight in any way you can. Bidding is about strategy; knowing how and when to bid is essential. Do not engage in a bidding war if you are not prepared. Remember: even if you win an item, the final price is what matters.
5. Letting emotions take over. Emotions can run pretty high during the sale especially if two or more individuals battle over one item. Do not get carried away with the intensity of the moment or else, planning and strategizing will just become useless.