AW Daily - Tips & Tactics - Before the Auction: Bidding on a Budget

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by Dennis Prince

With literally millions of items up for auction at the various person-to-person, business-to-consumer, and niche auction venues, it's no wonder why so many auction goers risk spending a king's ransom on the treasures they seek. But in all this searching, bidding, and buying, have you been minding your spending? Or have online auctions been too rapidly consuming your income in the easy "click and own" e-culture? Here are some ideas to help keep your financial head above water as you wade through the sea of tantalizing online auction offerings.

Establish a Ceiling for Your Bidding
Talk to any financial counselor and they'll advise you to spend within your means. The same holds true for bidding. Not only is it deceptively simple to commit your money with the click of a "bid now" button, but also there is the added element of competition, which easily can blind you as to how much money you ultimately will spend as you fight for the "win." In the passion of the final bidding, many folks end up spending more than what they originally intended to bid--often more than an item's true worth. It happens all the time.

To avoid this adrenaline-induced high bidding, set a dollar limit on how much you'll spend for an item--and stick to it! If the item is relatively common, bid a "maximum bid" and don't look back. If you lose, wait for the next one to surface and bid on it. There are plenty more fish in this cybersea.

Next, closely monitor the cumulative effect of your various bids. At online auctions, you can 10 and 20 dollar yourself into financial straits. Therefore, consider setting a monthly cap on your bidding and be vigilant about monitoring how much is left in your coffer after placing each maximum bid.

If, however, it's a rarer-than-rare item that you absolutely must have, and if money is no object (yeah, right), be sure you can afford whatever you might pay and prepare for the purchase by curtailing all other bidding. Focus your attention and funds on this choice relic, whatever it might be. Not only will your focused attention gain you a better chance to win, but also financially you'll be better able to recover from the purchase and, later, resume your treasure hunting.

Don't Look!
What's more, there might be times when you'll need to go "cold turkey." If your bidding is getting a bit carried away (or you anticipate it's about to), then stop looking! It's rare that browsing can be totally harmless--that is, you'll almost always find something you want. If you continue to look, you'll most likely continue to bid. It might be wise to give your budget a breather.

Keep in mind that the majority of items you'll find at online auctions become available on an almost regular basis. Even those vintage, rare, and out-of-production items regularly make the rounds in a virtual elliptical stream of availability. Turning your back for a while doesn't mean all the good stuff will be gone and never to be found again. Online auctions are an economy all their own, and folks are buying and selling many of the same items over and over.

So, when you're spending has reached or surpassed a comfortable limit, settle up with the sellers and take a break from the auctions. There will be plenty of goodies to tempt you upon your return.

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