Proxy Bidding | Auctions     |     9 May 2024

What is proxy bidding? Why should I use it?

Unlocking the advantages of proxy bidding for your next auction

12 minute read

Proxy bidding might sound like a high-tech concept, but it is actually quite straightforward. It’s a method used primarily in online auctions, including both online silent auctions and online live auctions, that allows you to set a maximum bid for items you’re interested in. Once set, the auction system automatically bids on your behalf, ensuring you can compete for items without constantly monitoring the auction and updating your bid. 

Read on to learn more about proxy bidding and why you should use it for your next online auction. 

How proxy bidding works (for the bidder)

Understanding the mechanics of proxy bidding is essential for anyone looking to enable it in an auction. Let’s take a look at how it works for the auction participant:

• Set the maximum bid: The bidder decides the highest amount they’re willing to pay for an item, and the auction system sets this as the maximum bid.
• The system takes over: Once the maximum bid is set, the auction system automatically places bids on the behalf. It will only bid enough to keep them in the lead and will stop once their maximum limit is reached.
• Incremental bidding: The system doesn’t immediately jump to the highest bid. Instead, it increases the bids incrementally, ensuring the bidder stays ahead of other bidders without exceeding their maximum.
• Outbid notifications: If another bidder exceeds the maximum amount, they'll typically receive a notification. This notification allows them to decide whether to increase their maximum bid or withdraw from the bidding for that item.

The psychological benefits of proxy bidding

Participating in an auction can be a thrilling experience, but it can also be fraught with tension and stress, especially during high-stakes moments. Proxy bidding significantly reduces these pressures by eliminating the need for continuous monitoring and quick decision-making that manual bidding demands. 

This automated approach allows bidders to avoid the emotional rollercoaster of bidding in real-time at an auction, where the impulse to outbid others can lead to regrettable decisions. By setting a maximum bid in a calm, considered manner, bidders are more likely to stick to their original budget and valuation of the item. More importantly, proxy bidding helps ensure you win. You have the ability to continually outbid others without having to stop what you’re doing and jump up at every outbid notification. Instead of constantly listing outbids, you get to enjoy the evening. 

Why you should add proxy bidding for your next auction

Integrating proxy bidding into your auction setup offers significant advantages, not just for bidders but also for your organization. Enabling proxy bidding can improve the overall effectiveness of your event, attract a broader audience, and potentially increase the total funds raised.

Streamlining auction operations

Proxy bidding automates much of the bidding process, reducing your team's need for constant manual oversight. This automation lets your staff focus on other critical aspects of the event, like engaging with attendees and answering questions, addressing technical issues, or promoting last-minute items. A smoother operation means a better experience for everyone involved, leading to higher satisfaction and potentially more repeat participants in future events.

Attracting more participants

One key challenge for any auction, especially charity events, is attracting bidders. Proxy bidding appeals to those who cannot attend the auction in person, prefer not to engage in the stressful pace of real-time bidding, or aren’t able to constantly monitor the silent auction for its entire duration. By offering a way for people to participate remotely and passively, you open up your event to a larger audience. This participant increase can lead to more competitive bidding and higher final bid prices.

Enhancing bidder engagement

Proxy bidding keeps participants engaged in the auction without requiring their constant attention. Bidders can set their maximum bid and then turn their focus to other items or activities at your event or in their lives, confident that they won't miss out on a chance to win their preferred items. This flexibility can lead to a more relaxed and enjoyable experience, encouraging participants to stay involved longer and perhaps engage with more auction items than they would have otherwise.

Enhanced auction efficiency

Proxy bidding simplifies the bidding process for individuals and speeds up the entire auction. With multiple bidders setting proxy bids, the auction can proceed smoothly without pauses or delays typically occurring with manual bidding. This system ensures that the auction doesn't slow down or stall, keeping the momentum going and maintaining interest among bidders. This streamlined process is crucial, especially during large-scale or high-profile fundraising events where time is of the essence.

Promoting fairness in bidding

One of the standout features of proxy bidding is how it levels the playing field for all bidders. Since bids are placed automatically up to the maximum bid amount, it prevents scenarios where bidders try to outbid each other in the heat of the moment. This system ensures that the winning bid reflects what bidders are willing to pay, not just those who click faster at the last second. For those worried about auction fairness, proxy bidding offers a transparent and equitable way to participate.

Increasing revenue potential

Proxy bidding can significantly increase the revenue potential of your auction by facilitating more bids and engaging a broader audience. With the ability to set maximum bids, participants might feel more comfortable bidding higher amounts, knowing they will only pay the minimum needed to outbid the next highest bidder. It can often lead to higher final sale prices, especially for popular items, thus maximizing the fundraising capabilities of your event.

Incorporating proxy bidding into your auction modernizes the experience and also adds to its efficiency and appeal. By making participation easier and more flexible, you're likely to see an increase in numbers and an uplift in overall satisfaction and success. Whether running a small local fundraiser or a large-scale gala, consider proxy bidding a key feature for your next auction.

Silent Auction Pro and proxy bidding

Silent Auction Pro streamlines the entire proxy bidding process with its user-friendly interface. Whether you’re organizing or participating in an auction, setting up proxy bidding is simple:

• Input your maximum bid: Through the auction interface, enter the highest amount you're comfortable with for the item you desire.
• Relax and monitor: After setting your bid, you can relax and monitor the proceedings. Silent Auction Pro handles the bid increments and informs you if you’re outbid.
• Automatic adjustments: The software adjusts the bidding in real-time, ensuring you remain the highest bidder up to your maximum limit without manual intervention.

Silent Auction Pro is designed to alleviate the pressure from bidders and organizers alike, making auctions more accessible and less stressful for everyone involved. Whether at home or on the go, you can participate fully in the auction without being glued to your screen, confident that Silent Auction Pro is advocating on your behalf.

Comparing proxy bidding with traditional bidding methods

When deciding between proxy bidding and traditional manual bidding, it's useful to consider the specific circumstances of each auction. Manual bidding, where bidders actively participate by placing each bid themselves, can be exhilarating and engaging. It provides the thrill of the chase, especially in a real-time bidding auction environment where the atmosphere can be electric. However, it requires everyone’s constant attention and presence, which might not always be feasible.

On the other hand, proxy bidding offers a more hands-off approach. It's particularly advantageous in online settings where auctions might run over extended periods or when someone is interested in multiple items simultaneously. The automatic nature of proxy bidding means bidders can stay competitive without being tethered to their devices, ensuring participants don't miss out on a desired item due to other commitments.

Integrating proxy bidding with other auction strategies

Proxy bidding doesn’t have to be used in isolation. It can be part of a broader strategy that includes manual or direct bidding to cover all bases effectively. For instance, bidders might choose to use proxy bidding as a safety net for items they are very interested in but cannot monitor closely due to time constraints.

Simultaneously, they might engage in direct bidding in the closing moments of an auction for items they are less attached to but see as good opportunities. This hybrid approach allows bidders to remain flexible and responsive to the auction dynamics, adapting their strategies based on the level of competition and their interest in specific items. Combining proxy bidding with other tactics can optimize outcomes, ensuring that bidders maximize their chances of winning while maintaining control over their spending. With Silent Auction Pro, the bidder has the choice of placing a proxy bid or manually bidding. The event organizer is unable to turn this feature off, meaning you don’t have to worry about accidentally taking away this option. 

Frequently asked questions your participants might ask about proxy bidding

Will proxy bidding cause me to overpay for an item?

No, proxy bidding ensures you only bid up to your preset maximum. You might win the item for less if competition doesn’t drive the price to your maximum limit.

Can I change my maximum bid after setting it?

Yes, most platforms, including Silent Auction Pro, allow you to adjust your maximum bid upwards if you decide to spend more.

Is my maximum bid visible to other bidders?

No, your maximum bid is kept confidential. Other bidders will only see the current highest bid the system places for you, not your maximum limit.

What happens if someone else places the same maximum bid as I do?

When bidding time expires, the bidder who placed the proxy bid first will be the winner since that bidder committed to the max bid value before the other. 

Enjoy the benefits of proxy bidding

Proxy bidding simplifies the online auction process, making it more accessible, fair, and efficient for everyone involved. Automating bids saves time, levels the competitive playing field, and potentially increases fundraising outcomes. Whether your organization has been hosting events for eons or is new to auctions, proxy bidding offers a method to get more out of your efforts. 

If you’re intrigued by proxy bidding's simplicity and effectiveness, why not see it in action? Request a free demo of Silent Auction Pro. Experience firsthand how our proxy bidding feature can transform your auction offering, making it smoother and more enjoyable. You can also explore our other powerful features and capabilities to help you improve your efforts and raise more money for your cause.