How much should you bid?

Knowing how much to bid on a given lot is a tricky subject. Obviously, you could just bid $100 on every lot you want and you'd probably get most of them, but that only works for people who love fish and hate money.

Let's take a look at how much money people are actually willing to put down for a lot. If we have an idea of that, you'll know how much you need to bid in order to win without breaking the bank.

How much people actually bid

First, let's take a look at the actual dollar amount people are willing to bid. These data are based on the maximum bid given by users on lots (~900 bids in total). Even if the bid didn't win, it's shown here. But if someone bid $1 and then upped it to $5, only the $5 bid is counted.

Right away, we can see a few things:

How much people actually bid, smoothed

Now, let's apply a rolling average to the data - that's just an average of the last 4 dollar amounts put together. So the bar representing a $10 bid is actually the average number of bids placed at $7, $8, $9 and $10. All this does is remove the spikes at round numbers, making it easier to see how much people are willing to bid.

This chart is interesting because it clearly shows how people's interest in spending money drops off as prices increases.

So what?

There are some great things for both buyers and sellers to learn here.

For bidders

For sellers