HiBid 101

What is a Silent Auction? - It is a type that auction that does not display bids. It is also called a Sealed Bid Auction. This means the bids are sealed to the public. The term comes from days gone by where bids were sealed in an envelope.

The bidder places a maximum amount (aka Max Bid) they would pay for the lot. The highest max bid wins. In the case of a tie, the first bidder is awarded the lot. So, it it always good to place a bid higher than the starting bid.

What is the starting bid? – It is what one see on the lot. Most lots start at $5 or $10. It is also called a minimum bid. Meaning the minimum the auction house will take for the lot. The starting bid does not change when a bid is placed like a Proxy Bid Auction. Otherwise it wouldn't be a Sealed Bid Auction would it?

Why does it say "Bid – Sealed"? – Because it is a Silent Auction please read the text above.

I saw a record in a lot and it said "bid – sealed" but the record was not "sealed in shrink wrap" Why am I confused? – Well, hate to break it to you Dude but there are words that have two meanings. They are called Homonyms. The term "sealed" is used to describe media when the shrink wrap has not been opened. It also is used in Silent Auctions when the bid is sealed to the public.

It is mind blowing isn't it? So do the due diligence and read the description and look at the pics. If you see the vinyl record in a pic how could the record be sealed? Furthermore, how can any of the other lots that are not media be sealed in shrink wrap? Like a T-Shirt or a Vase?

If one is dead set on being confused on the matter then one might be in the "wishful thinking zone" and gambling receptors in one's brain are triggered. This is said because every once in a while a moron calls out "deception". They see what they want to see or wish for. All reality is set aside from there.

Can the auctioneer see the max bid? – Of course, how would the lot be awarded to the highest bidder otherwise? So, be realistic with your bids. Don't place a max bid of $1000 for a $12 lot.

Homonyms

What does “may have won” mean? – Well, that is a stock phrase used by Hi Bid and can mean a few things and is a bit confusing.

The phrase is used to let the bidder know that they have the highest bid. It is usually used with a lot that has a reserve price. However, that does not mean they have won the item if the item has a reserve price. Thus, the confusion.

It would be so much better if they used “won” or “reserve met” like Ebay does. However, they do not for a variety of reasons.

What does “winning” mean? – The same as above. The bidder has the highest bid. Usually, this is used with a lot that does not have a reserve price.

What does “pending” mean? – Yet another word that can mean many. It means the Silent Auction is still open for bidding. Once it is closed and the bids are tallied, the winning bidder will be notified. It can also mean that the bidder account has a lot of bad feedback and under scrutiny to be accepted or denied after registration.

Why do they use these phrases? – They use it because Hi Bid is made up many Auction Houses that operate differently. Some houses use do Absolute Auctions. Others do Silent Auctions. In both scenarios, a reserve may be in place due to a Consignor’s request.

Therefore, the phrase “may have won” is used to bridge the gap between the various houses and bidder. It lets the Auctioneer know about the high bid as well as the bidder. It is then up the Auctioneer to declare a winner or to pass if the bid was too low or if the reserve was not.

This also gives the Auctioneer time to ask the Consignor to sell if the bid was close enough to the reserve price or to pass.

How do you feel about these phrases? – The are difficult, misleading, and add too much confusion. Things would be so much easier if they followed an Ebay scheme. Wish they could be changed but no…

So how do I know if a lot has a reserve price or not? – Look for it noted in either the description under the INFORMATION area on the lot listing. There is usually a graphic in the pics that mentions is as well.

Why don’t all auction types work the same way? – Again a variety of reason. Consignors who want a reserve. You can’t blame them can you? Why sell something at alow bid of $1 when it is split up into percentages with commissions, fees, and whatnot? Who would be happy? Would you be happy is you consigned an item and the highest bid was $1 and the lot was worth $500? No, probably not. The list goes on…