To ensure you achieve your objectives in an eAuction, you should make a responsiveness previous analysis, considering, for example, the minimum bid values and, if possible, analyzing the competitors. However, and even with the lessons well studied, an eAuction can get out of control. Read the following tips and ensure your success (and make sure everything goes well):
Ensure that you have access and that there are not technical problems
In most cases, the invitation to an eAuction is received in advance, ensuring participants they have all the conditions to participate. Ensure that you meet all the technical requirements to access the platform beforehand. Waiting to test it just before the eAuction goes live can be fatal. If you find a problem, talk to the eAuction organizer so that it is solved by the eAuction date, and don’t forget to test the access again. To avoid problems on the day of the eAuction, access the platform 15 minutes early to make sure everything is as planned. If you find problems, you’ll have time to report them.
Starting an auction is as important as earning it
Starting an eAuction properly is almost as important as being able to finish it with the winning bid.
Participants tend to opt for one of three value strategies of opening bids:
1. Do not bid initially – wait and see what the other participant’s do
Deciding not to make any decisions is never a good idea in this type of event. The eAuction can be seen as a strategy game, in which it is better to ensure that our strategy is followed and that other players do not define it for you. By refraining from bidding at the beginning of an eAuction, you can quickly lose control of the bid value, and in which case you will be unable to keep your stake for lack of bids, or the value will exceed its minimum sooner than expected.
2. Bid low
Although it is a bold and aggressive option to bid low, it can become self-defeating where it leaves you no room to handle the following bids. Do not forget that an eAuction should not be seen as a sprint. It is more like a marathon, where patience and thinking can give a good result at the end of the day.
If you decide to bid low just because you think that your competitors cannot keep up, you take on the risk of being misled. If you don’t know your competitors’ strategy, you are not advised to put yours at risk.
3. Bid high
We know that not bidding can be dangerous, and also bidding too low has drawbacks. So what about bidding high? Just like the game of poker where we do not want to give too much information, a high bid or with a low reduction compared to the starting value, proves to be the right decision. On the one hand, bidding at the beginning allows you to set a position among the other participants that "you are interested and want to win"; on the other hand, you can set the pace of bids, since the second and third bids tend to be based on the first.
Always follow the bids, ALWAYS!
Although it may not be politically correct to say so, a "bullying" strategy in bidding can also bring positive results. When you lose the first-place bid right away, act like it was an automatic setup to do it so. This "intimidation" method passes a strong message to the competitors, a message that you want to win no matter what. Usually after two or three bids your competitors will stop bidding.
Tell me how you bid and I'll tell you how you think ...
The best way to ensure that we make the right decisions is to anticipate the possible behaviour of the competition, and eAuctions works the same way. We all have, more or less, standard behaviour that allows those around us to predict our future actions. Try to predict the bidding logic of your competitors, because if you can, you’ll be able to plan your bids more effectively.
Most eAuctions use time extensions, so it will not make sense to wait for the last few seconds to bid because you take on the risk that your bid won’t be accepted.
Did you know that:
1. Bidders tend to bid "round" or whole numbers.
2. Most of the bids occur in the last 15 minutes of an eAuction.
3. As time goes on the eAuction bidding differences become smaller, assuming, in most cases, the minimum bid amount.
4. Participants tend to bid in the last seconds, with the expectation that the competitors won’t have time to counter-bid.
Don't bite off more than you can chew...
We have already mentioned the importance of preparing the eAuction and knowing the minimum values to be in the game, but in the heat of the moment many are those who bid below this value, being unable to comply with the value later. In some trades, eAuctions are just another negotiation round, if it exceeds its minimum value it will lose its leeway for further negotiations.
Ensure that it never exceeds its minimum value because it will jeopardize the service and its quality, being aware that the non-fulfilment of the value may cost you future businesses or even the client.