Online Auction Strategy: How to Win Without Overpaying

Online auction strategy, step by step

Winning an online auction isn’t only about the last bid. The buyers who do well at our weekly Calgary auctions research what they want, decide their price before bidding starts, and plan for payment and pickup. This guide walks through each step, from your first look at a lot to bringing it home.

For quick bidding tactics, see our 12 expert tips on how to win at auctions. New to bidding with us? How to bid in an online auction covers registering and placing your first bid.

Research the lot before you bid

Every lot has a number, photos and a description. Read all of it before you bid:

• Read the whole description. Open-box and salvage items say so, and we note any damage or wear we find when we inspect them.
• Look at every photo, including close-ups of labels, model numbers and wear.
• Check the quantity. On a lot with several of the same item, your bid is per item and is multiplied by the quantity.
• Know what it’s worth. Look up what the item sells for new and used, so you know what a good price is.
• Ask before the auction closes. If something isn’t clear, call us at (403) 777-9393 or email info@grahamauctions.com.

Set a budget that includes fees

Decide the most you’ll pay for each lot before you place a bid, then work out what that bid really costs:

• Buyer’s premium. Our weekly online auctions add a 12% buyer’s premium to each winning bid, plus 5% GST. A $200 winning bid costs $224 before GST.
• Vehicles. Each vehicle has a flat buyer’s fee based on its price, higher for online bidders: a $3,500 vehicle bought online carries a $300 fee. The full schedule is on our vehicle auction page.
• Getting it home. A sofa or a fridge needs a truck and a second pair of hands. We can arrange shipping for most items, at cost plus a small handling fee.
• A total for the week. Set a limit for everything you might win, not just for each lot. When you bid on several lots, it’s easy to win more than you planned.

Know how the bidding works

• Register early. Registration is free, but you’ll need a credit card. If you’ve bid with us before or live in Alberta, you’re usually approved quickly; with an address outside Alberta, we may call or email to confirm a few details first.
• Bid increments grow with the price: a few dollars on a low-priced lot, larger steps as the price climbs.
• No reserve on general merchandise. Furniture, electronics, household goods and salvage lots sell to the highest bid, whatever it is.
• Every winning bid is a sale. Items are sold as is, with no warranty, so be sure before you bid.

Time your bids

When you bid matters almost as much as how much.

• Watch first. Keep an eye on the lots you want and see how much interest they draw, but hold your bid. Early bids show other buyers what’s popular and can start a bidding war.
• Be there at the close. Check the closing time on the auction page and plan to be online for it, on a reliable connection.
• Bid your real number. A low placeholder bid rarely wins. When a lot matters to you, bid up to your limit with confidence, and stop there.
• Look at the quieter lots. Lots with few bids near the close are often where the best prices are.
• Vehicles run live. In the vehicle auction you bid in real time on the live webcast as each vehicle comes up, so be online before your vehicle’s turn.

Common mistakes to avoid

• Raising your limit in the last minute. Decide once, before the close.
• Forgetting the buyer’s premium and taxes when you compare a price with retail.
• Skipping the description, then finding a missing part or a flaw at pickup.
• Missing the quantity on a multi-item lot and owing far more than you expected.
• Winning more than you can collect in time. Items must be picked up within 7 business days of the auction, or they are treated as abandoned and resold.
• Bidding on something big with no way to move it.

After you win

• Your invoice. You’ll get an email listing your items, quantities and prices. If you don’t see it, check your spam folder.
• Payment. The card you registered with is charged when the auction ends. We accept cash, debit, Visa, Mastercard, e-transfer, wire transfer, certified cheque, bank draft and money order.
• Pickup. Collect your items at our warehouse in northeast Calgary within 7 business days of the auction. Items not collected by then are treated as abandoned and resold. Pickup hours and directions are on our customer care page.
• Vehicles. Pay within 2 business days, or the card you registered with is charged. Pick up from our secure lot within 7 business days, or storage and administration fees apply unless arranged in advance.

Put your strategy to work

A new online auction opens every week, with thousands of lots of furniture, electronics, appliances, tools and more. Browse the current auction on HiBid, see this week’s featured lots, and start with one or two lots you know well. Each auction you bid in makes the next one easier.