It can be extremely difficult to determine the exact value of items in an online auction. Known as the Winner’s Curse, the fear of overspending on an item often keeps people from participating at all. Unfortunately, these potential bidders miss out on some pretty incredible deals.
Avoiding the Winner’s Curse isn’t as difficult as it seems. Although it’s not always possible to know the exact value of an item before bidding, there are some things you can do to ensure you don’t overspend.
Determine the “Common Value” Versus “Private Value” of An Item
Common value is the market value of an item. This might be the item’s MSRP or resale value. Private value is the perceived value of an item. While common value is the same for all bidders, private value varies from one bidder to the next.
For example, a collector looking for a certain piece will place a higher value on that item. This is especially true for hard to find and discontinued items. The collector may determine that the piece they want is “priceless”. Other bidders might not feel the same way. For the collector, the perceived value of the item is higher, making it more valuable to them..
When an item has a high private value, the Winner’s Curse is not a problem. Simply decide what you’re willing to pay to get what you want. This will likely be much higher than other bidders.
For common value items, consider how you would feel if you won the item for what you bid. Would you feel that you overspent? Set a specific budget for each common value item and stick to it. Don’t increase your maximum bid on any item, even if you get outbid.
What If The Item Doesn’t Meet Your Expectations?
Sometimes, despite your best efforts, you may purchase something that doesn’t meet your expectations. The item may be broken or missing parts. Make sure you shop with an online auction company that accepts returns.
Lots Of Auctions offers online auctions in Denton & Dallas, Texas. Auctions take place daily and bidders can choose from a variety of items and categories. Click here to register to bid!
Autumn has officially arrived! This time of year brings cool evenings and falling leaves. It can also bring lots of extra expenses. From back-to-school shopping to preparing for the upcoming holiday season, many people find it difficult to stick to a budget during the fall. Fortunately, there are a few things you can do to save money this season.
It’s officially Autumn and people everywhere are starting to think about the upcoming holiday season. If you haven’t started making plans, you might want to start now. Preparing early reduces stress during what is often the busiest time of year.
Many people don’t like shopping for kitchen appliances. Department stores often have a large selection. With so many choices, it can be hard to know which version is best. People looking to save money while trying out different gadgets, could benefit from shopping through online auction.
People downsize their home for multiple reasons. Some people downsize when their family size or personal needs change. Sometimes, a larger home becomes too much to take care of. This is especially true as people get older. Whatever the reason, downsizing can leave you with a lot of extra stuff. While some people choose to move their belongings into storage, this isn’t the best option for every situation.
As the school year begins and we start thinking about the upcoming holidays, most people are looking for ways to save money. While clipping coupons and shopping discount stores provide an excellent way to save money on the things you need, it’s not always easy to find everything in one stop. Most people travel to three or more stores to get the things they need. This can end up costing a lot of time and money for gas.
By now, we’ve all heard of the benefits of working from home. Working from home saves time and money, decreases work-life conflict, and boosts productivity. Unfortunately, it’s not that easy to find ways to make money from home. This is especially true now as many employers are moving operations back to the office.
The internet is changing the way that people buy and sell. Many things that people used to buy in person can now be bought more easily online. Visiting a website is much more convenient than visiting a retail store. The internet is open around the clock and local pick-up allows consumers to avoid crowded shops and rising shipping charges.
More businesses move online each day. Shopping online is fast, easy, and more convenient than visiting the store. Online resellers have the opportunity to reach a large audience in very little time. When it comes to buying and selling online, there’s nothing quite like online auctions. These auctions provide an exciting way to shop.
Shoppers unfamiliar with online auctions often have questions about how these types of auctions progress. Many people believe online auctions last only one or two days. Occasionally, we run into people that think they have a full month to place their bids. The actual length of time an online auction lasts can vary from one website to the next. Sometimes, the length of time is different on each auction listed on a website.