Archive for July, 2013

Bidding on Bid for Wine

Posted in Uncategorized on July 12, 2013 by AB

As part of our ongoing efforts to improve and streamline Bid for Wine we’ve recently been looking at our bidding process.

In a standard auction bidding goes up in increments – £100, £110, £120 etc – and ‘split bids’ falling outside of these increments (e.g £101) won’t usually be accepted for reasons of fairness to other buyers and speed of bidding. In contrast we’ve always run a ‘hybrid’ system which uses bid increments to define how much more the next bid needs to be than the last but we have also accepted ‘split’ bids so long as they’re above the minimum bid.

For example if a lot is currently selling to bidder A at £100:

-The next bid must be £110 or more.
-We would accept a maximum bid of £121.50 from bidder B. If the auction ended immediately they would win at £110 (one increment above the next highest bid i.e. £100).
-However if a further bid of £120 was then placed by bidder A, the site would place an automatic bid of £121.50 for Bidder B.
-If bidder A still wants the lot they would have to bid £131.50 or more – i.e. at least one increment above the current price.

We will therefore shortly be modifying the system to work in the same way as our ‘Live Auction’ platform. This will mean that bids will only be accepted at increments.

So to use the example above:

-Bidder A is winning at £100.
-Bidder B must bid at least £110. We will also accept any bid so long as it’s at an increment (£110, £120, £130 etc).
-If Bidder B bids £120 (rather than the £121.50) in the example above, Bidder A will need to bid £130 (rather than £131.50) to win. If bidder A has already enter a maximum bid of £130 or above, the site will automatically place a bid for them.

As a step towards the introduction of this system we will be standardising our bid increments too. These will be as follows:

Band Increment
£1 – £10 £1 – £1, £2, £3…
£10 – £50 £2 – £10, £12, £14…
£50 – £150 £5 – £50, £55, £60…
£150 – £300 £10 – £150, £160, £170…
£300 – £400 £20 – £320, £340, £360…
£400-£600 £420, £450, £480, £500…
£600-£1000 £50 – £600, £650, £700…
£1000 – £2000 £100 – £1100, £1200, £1300…
£2000 – £3000 £200 – £2200, £2400, £2600…
£3000 – £5000 £3200, £3500, £3800…
£5000+

£500 – £5500, £6000, £6500…