Question about an ebay auction i had.

indianabyron

I had 2 bidders the first bidder bid 7.50 for all 3 of the wall hangings. The second bidder bid 10.50 for 2 wall hangings. Here is the auction link #3012953086 im kinda confused this was the first dutch auction I have run.

My question is the second bidder has the high bid with 10.50 he wants 2 wall hangings. the first bidder wants all 3 at 7.50 each. When I go to send the invoice to the second bidder it only comes up as 7.50 and not 10.50 why is that. shouhld i ask him if he wants all 3 and cut the first bidder out. or shouhld i ask the first bidder if he wants the last wall hanging i have at the 7.50. ??


I know this is such a newbee things but since this is the first dutch auction I have had I do need the help


Byron

Russ

In a Dutch auction, the lowest bid is the bid for all, so one bidder gets two at $7.50 (the one who bid $10.50 for two) and the other bidder gets one at $7.50 (the one who bid $7.50 for three).

Russ, NCNE

NoGvmnt

Damn I hate that if that is infact true. Why would the second bidder get to cut the first bidder out at the first bidders price? The first bidder bid $7.50/each for all three but the second bidder could come in and get as many as he/she wanted at the first bidders price just by bidding higher but knowing he/she wouldn't have to pay his/her bid price? Unacceptable!!!

Full disclosure: I was the first bidder.

CarlWohlforth

That is how it works. It works pretty well when there are lots of biders. In this case the seller left money on the table.

Someone once had 5 recent Canadian proof sets out there in a dutch auction. I wanted one set and there were only two other bidders. I bid fairly high to be sure I got a set. They all went too cheaply.

If someone else had come in at $11 for 1 all would go for $10.50.

satootoko

<< <i>All winning bidders pay the same price per item—which is the lowest successful bid. This might be less than what you bid! >>

This came straight from The Horse's Mouth

IndianHeadMan

The dutch have to mess everything up.

baccaruda

10.50 was just his proxy. he could have bid $7.51 and still gotten them at $7.50. or he could have bid $500,000,000 and still gotten them at $7.50.

the fact that no one bid more than $7.50 for the last one establishes the market value. it's all good.

NoGvmnt

My point is, I bid $7.50/each for a quantity of all 3 that were available. So, since I bid for the entire quantity available I believe the first three should have went to the first bidder. The purpose of a Dutch auction is if the seller has a multiple of the same items for sale, say a quantity of 100, and the first bidder bid for 20, the second bidder bid for 20, the third bid for 20 and so on, when the auction ended all of the items would go for the lowest bid BUT the first bidder should get his quantity first, second bidder gets his quantity second and so on. Does anyone understand where I'm coming from?
I don't know if Byron made a faux-pa by listing the three items as a "Dutch" auction when he might have just listed them as inclusive in a winner take all auction. act is, he probably would have gotten more money considering the second bidder seemed to be willing to bid $10.50/item. I contacted Byron here when he first listed the items and informed him that I was willing to buy the items "at his price" if he didn't receive any acceptable bids and he asked me to place a bid to get the auctionstarted, which I did, unfortunately to my chagrin. Oh well, that's what I get for being a nice guy, won't happen again.
Jim

baccaruda

i kind of see your point but the second bidder was willing to pay the most for his, so he gets his first. if you had bid $10.51 x 3 then you'd have gotten all 3 - but the new price would have been $10.51.

MadMarty

If you bid on three and there is only 1 left, you do not have to to take it. I hate dutch auctions!

baccaruda

dutch auctions are better suited to selling large volume without all the hassle - like 1,000 SAEs or something. a dutch with 3 items is probably not the best approach.

indianabyron

this is the last dutch auction i do . its easer to just list them single. I feel like im cheating nogvenmt

i dont like to cheat anybody on anything sorry about that .

Byron

NoGvmnt

Relax byron, you didn't cheat me, that's just the way it is. I know by the way I posted on this thread it seems that I was making a big thing out of it when it's not such a big thing.

NOW, WHERE IS THAT "SECOND" BIDDERS EMAIL ADDRESS?!!! LOL
Jim