From time to time a customer attending one of my auctions will ask me to sell a piece of equipment for him. He just watched me sell something identical in a bidding war between several customers and figures he now has a built-in buyer. Even at a similar selling price, those same bidders who actively bid and lost out earlier will not jump to buy again. What’s missing in this scenario? An effective close.
understanding how buyers think is the key to understanding why auctions work
There’s truth to the idea that live auctions bring out the competitor in most people. Competition in bidding justifies the items worth. Buyers must be decisive because there is no time to “think about it”. An auction setting sets a definitive time and date where an item will sell. This combination of brisk activity and competitiveness cannot be duplicated outside of an auction.