If you regularly bid in penny auctions, then you must have come across aggressive bidders and wondered how to beat them. Aggressive bidders are the kind who do not wait for the clock to run out before placing a bid. Instead, they place a bid immediately after another person has placed a bid. This strategy works by playing on the psychology of other bidders. This is because no one likes to be outbid the next moment.
For example, you find an item you like and place a bid. But as soon as you place the bid, someone outbids you. Now you place your bid again and within a second, you are again outbid by the same person. This can be frustrating and after a few bids, the person usually just gives up.
However, you do not have to be afraid of aggressive bidders. You simply need to understand their psychology and their situation to really beat them. Remember that when bidders get aggressive, they have fewer number of bids left as they need to outbid every person. This is important to remember because when you spend 1 bid, the aggressive bidder might need to spend 5. This is because you are not the only other bidder – there are other bidders too. The aggressive bidder needs to spend bids to outbid every single bidder and thus loses bids.
Aggressive bidders can have a trick or two down their sleeves, though. You need to be aware of the strategies that they can use. For example, when there is an aggressive bidder and many other meeker bidders, they each rely on the other to place their bid, thinking they are protecting their bids. The aggressive bidder wants exactly this and places a bid while everybody else is waiting for the other to bid first. In the end no one bids and the aggressive bidder wins the auction. Don’t get caught in this trap!
So here is what you need to remember: to beat an aggressive bidder, you need to keep bidding. Never give up. If you give up, you are not just losing the auction to the aggressive bidder but you are also losing the amount that you spent towards your bids. Against an aggressive bidder, you can wait until there’s little time left on the clock to place a bid
An aggressive bidding strategy is not very sustainable and the aggressive bidder will sooner or later run out of steam. You are not the only bidder but don’t let the decision of others impact your own strategy. You can certainly beat aggressive bidders with this strategy. Just remember never to get intimidated.