I don't understand sniping. I am pretty set on what I want to pay for something, and that's that. If I get outbid, then it went for more than I was willing to pay. Even 1.00.
For normal auctions, your approach is correct. You want to pay $x, won't pay more, and that's it.
What I'm talking about is for getting bargains (which I mentioned in the original post). Case in point. There's a certain type of PC that I need for my business. I saw a half dozen of them online last week, so I went through and put my maximum bid down on all of them - $200.
Every single one of them jumped to $380 or so, and sold for that amount.
This morning I finished an auction on another unit. I had originally put my bid in at $125, just to get it on my 'items i'm bidding on' list. As the auction counted down, I saw that bidding had halted on the unit at $195. I waited until the last 30 seconds of hte auction, bid $202.50, and won the auction. This is called a Snipe. I got a unit that had been going for $350-$380 the 'traditional' auction methodology for $150 less doing it this way.
But your maximum amount, as you said, was 200.00, so you actually paid more than you had originally planned... I understand what it is, but I don't understand the mind set behind it... maybe I just don't see shopping as a competition!
Sniping is taking advantage of (or at least circumventing) a psychological phenomenon that, while you may not have it, many people do: people bid the max they want to pay on something, then they wait. While they are waiting, they get *attached* to the item, they start to get a sense of *ownership*, so when someone outbids them, they feel personally affronted. It stops being about money, and starts being about someone else "taking their stuff". So they up their bid to maintain their claim. In fact, the faster the bidding war goes, the more threatened/tense/anxious they feel, and the less able they are to see it as simply an economic issue. I've seen things actually sell for *above* retail because of this phenomenon.
Then there's the "slippery slope" problem: someone bids $20, and an hour before the end of the auction, they are outbid by $.25. "Sheesh", they think to themselves, "for $.50 I can win this auction. What's the big difference between $20 and $20.50 anyway? This item retails for $40, it is a bargain either way!" So they up their bid $.50. And again. etc.
Anyway, because *other* people do the above, often things go for more than they would otherwise. So rational, level headed people like Dave and Ben bid an honest $200, and the "you can't have it, it is mine!" folks up their bid to beat them, even though they hadn't really intended to spend that much, and Dave and Ben lose out...unless they "snipe" it, and bid their $200 at the very end of the auction, when the "mine mine mine" guy doesn't have a chance to up the bid.
In fact, the snipers can be seen as doing a social service, saving the irrational "mine!" people from their own impulses.
Yeah, I get that. I have read all sorts of psychological studies about eBay bidding. Like I said, I don't see it as a competition. Abd even if I did, if someone outbids me, then I figure they paid more than I thought it was worth, so who is the winner here?
Like you said, it does seem to be about winning, not about a simple purchase. I am just interested in an item, and will pay what I think it is worth to me! I have gotten all sorts of good deals and bargains, and have never regretted what I paid for an item.
And when the " it's mine" guy bids over its worth, who really loses?! Social service? I think the sellers would think otherwise!
There's one other aspect here - There's a difference between "I lose getting something I want" and "I lose getting something I need."
What I'm bidding on at the moment are things i need for my business. Not something I want to decorate my wall with. Therefore, the lower the price I get the item for, the better the bottom line in my business. If I lose out on an auction and someone else wins, I still -need- that item, and have to move on to the next one of those items for sale.
If I can nip that process in the bud and get the item I need for a sustainable and not overburdensome price, then I'm naturally going to go that path. Mostly I'm working how -other- folks are reacting to the bidding, not reacting on my own.
So, how do I leverage the casual buyer's mindset? First, don't tempt them into bidding something higher than mine. Keep my bids low until the last minute so I don't provide a temptation. If it's too low, someone will outbid me - sure, cool, let 'em. :)
One other thing. Lets say me and Bob are interested in Item X. Bob puts in a bid, he wants the lowball price. He puts in his lowest interested price ($150). He won't up his own price, but if I outbid him, he will. The auctioin approaches closing, and I outbid him one more notch, to $165. If he doens't have time to re-bid, I win.
So, why doesn't he put in $250 as his max bid to begin with? Because the "Yeah, I'll take it!" feeling works at $150. But he'd have to really think hard about if he wants it if the price does jump to $250.
It's not a flat line. People want something more if they get to pay less for it. If someone offered me a car for $5000, and the same car for $20,000, I'd be more likely to pay $5000 and get it, even though they'r eboth the same car. See?
Like I said, I completely understand HOW this works.
People want something more if they get to pay less for it.
This is the part that gets me. Because me, I either want something or I don't. I don't want something more if I can get it for less..maybe that's where I am different and not willing to play this game!
And BTW I mostly buy things I need for my business on eBay. If I really need it I don't solely depend on eBay.
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timeasmymeasure
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Date: 2003-12-10 12:15 pm (UTC)Why?
Date: 2003-12-10 12:44 pm (UTC)I am pretty set on what I want to pay for something, and that's that.
If I get outbid, then it went for more than I was willing to pay.
Even 1.00.
Re: Why?
Date: 2003-12-10 01:16 pm (UTC)What I'm talking about is for getting bargains (which I mentioned in the original post). Case in point. There's a certain type of PC that I need for my business. I saw a half dozen of them online last week, so I went through and put my maximum bid down on all of them - $200.
Every single one of them jumped to $380 or so, and sold for that amount.
This morning I finished an auction on another unit. I had originally put my bid in at $125, just to get it on my 'items i'm bidding on' list. As the auction counted down, I saw that bidding had halted on the unit at $195. I waited until the last 30 seconds of hte auction, bid $202.50, and won the auction. This is called a Snipe. I got a unit that had been going for $350-$380 the 'traditional' auction methodology for $150 less doing it this way.
That's why I snipe. :)
Re: Why?
Date: 2003-12-10 02:43 pm (UTC)I understand what it is, but I don't understand the mind set behind it...
maybe I just don't see shopping as a competition!
Re: Why?
Date: 2003-12-10 05:41 pm (UTC)Then there's the "slippery slope" problem: someone bids $20, and an hour before the end of the auction, they are outbid by $.25. "Sheesh", they think to themselves, "for $.50 I can win this auction. What's the big difference between $20 and $20.50 anyway? This item retails for $40, it is a bargain either way!" So they up their bid $.50. And again. etc.
Anyway, because *other* people do the above, often things go for more than they would otherwise. So rational, level headed people like Dave and Ben bid an honest $200, and the "you can't have it, it is mine!" folks up their bid to beat them, even though they hadn't really intended to spend that much, and Dave and Ben lose out...unless they "snipe" it, and bid their $200 at the very end of the auction, when the "mine mine mine" guy doesn't have a chance to up the bid.
In fact, the snipers can be seen as doing a social service, saving the irrational "mine!" people from their own impulses.
Re: Why?
Date: 2003-12-10 06:06 pm (UTC)I have read all sorts of psychological studies about eBay bidding.
Like I said, I don't see it as a competition. Abd even if I did, if someone outbids me, then I figure they paid more than I thought it was worth, so who is the winner here?
Like you said, it does seem to be about winning, not about a simple purchase. I am just interested in an item, and will pay what I think it is worth to me! I have gotten all sorts of good deals and bargains, and have never regretted what I paid for an item.
And when the " it's mine" guy bids over its worth, who really loses?!
Social service? I think the sellers would think otherwise!
Re: Why?
Date: 2003-12-10 06:48 pm (UTC)What I'm bidding on at the moment are things i need for my business. Not something I want to decorate my wall with. Therefore, the lower the price I get the item for, the better the bottom line in my business. If I lose out on an auction and someone else wins, I still -need- that item, and have to move on to the next one of those items for sale.
If I can nip that process in the bud and get the item I need for a sustainable and not overburdensome price, then I'm naturally going to go that path. Mostly I'm working how -other- folks are reacting to the bidding, not reacting on my own.
So, how do I leverage the casual buyer's mindset? First, don't tempt them into bidding something higher than mine. Keep my bids low until the last minute so I don't provide a temptation. If it's too low, someone will outbid me - sure, cool, let 'em. :)
One other thing. Lets say me and Bob are interested in Item X. Bob puts in a bid, he wants the lowball price. He puts in his lowest interested price ($150). He won't up his own price, but if I outbid him, he will. The auctioin approaches closing, and I outbid him one more notch, to $165. If he doens't have time to re-bid, I win.
So, why doesn't he put in $250 as his max bid to begin with? Because the "Yeah, I'll take it!" feeling works at $150. But he'd have to really think hard about if he wants it if the price does jump to $250.
It's not a flat line. People want something more if they get to pay less for it. If someone offered me a car for $5000, and the same car for $20,000, I'd be more likely to pay $5000 and get it, even though they'r eboth the same car. See?
Re: Why?
Date: 2003-12-10 09:02 pm (UTC)People want something more if they get to pay less for it.
This is the part that gets me. Because me, I either want something or I don't. I don't want something more if I can get it for less..maybe that's where I am different and not willing to play this game!
And BTW I mostly buy things I need for my business on eBay. If I really need it I don't solely depend on eBay.
good luck!