Understanding the psychology of bidding

Understanding the psychology of bidding

The idea of winning and bidding can be very stimulating for your brain. Online equipment auctions can be a thrill for some auction goers. An auction is a great option, as it provides a lower cost for brand name heavy equipment. It may even bring out the competitive side you never knew you had! 

What to know about your brain before you bid

A study on humans was done based on competitive arousal and how that can lead you to irrational thoughts. In the study, social facilitation showed that it plays a role when making decisions. Social facilitation means that you are more likely to enjoy something based on the others, this can be virtual, in person or made up. In an auction setting, when someone sees an increased bid, their competitiveness arises and is more likely to up their bid. 

The endowment effect is another thing to know about. This is when you are personally attached to an item, your mind will automatically up the price it is worth. For example, during online equipment auctions, you know which brands are more costly than others. The more pricey brands may cause your brain to think that this piece of equipment is worth more money than it actually is. 

How to win at online equipment auctions 

Now that you know what goes through your mind during auctions, it is time to prepare! It is important to have self-control during auctions. One way to help yourself is by creating a budget. Don’t fall victim to social facilitation, set a maximum price and know when it is time to let go of an item that you had your eyes on. 

During a bid, it is important to pace yourself. Just because you have a maximum bid does not mean the best strategy is to start with that amount. It is more beneficial to raise your bids slowly, this way you are able to see the flow of the auction instead of jumping the gun and trying to outbid the others. 

Another tip to winning at online equipment auctions is to remain level headed. When you are around other bidders, try to remain calm and do not show interest in the items that you are interested in. This may result in a bidding war. 

What to do after you win at an auction 

An auction is a place where you can feel a large range of emotions, from competition to winning, or adrenaline and pride. Now that you own the equipment that you want, one of the first things to do is to make sure you get insurance on it. Transporting equipment can be a challenge and it is best that your new equipment is protected! 

Once the equipment has made it to your destination, as an owner you are responsible for keeping it in good condition. This is imperative because it will help your machine last longer. It is important that you do not overwork your equipment, this helps it from breaking down. Also, be sure to inform your crew on how to properly use the equipment.  

Are you ready for your next auction? Lyon Auction strives to provide a headache free process, check out our upcoming auctions and join us!


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