Guidance on setting increments on auction items
Bidding increments are an essential aspect of online auctions. They determine the minimum amount by which a bidder must increase their bid in order to participate in the auction.
In GalaBid the bidding increment is set up as part of the item creation. Each item can have a different increment. The increment must be a fixed amount. It is typically calculated based on a percentage of the fair market value of the item. 10% is common.
For example, if bidding on an item, say an antique clock that currently has a bid of $550, you, the next bidder must bid at least $600 (the current bid of $550 plus the minimum increment of $50).
In GalaBid bidders either use the bid slider to enter their bid or they type the bid amount in to the bid box. This means they often bid higher than the minimum amount.
Note that starting prices are exactly what they suggest, if you set a starting bid of $400 the first bid placed must be a minimum of $400 not $450.
Here you can see how the increment is displayed for participants/potential bidders.
Bidding increments are designed to maximise the time available for bidding and the auction results. By requiring bidders to increase their bids by a minimum amount, bidding increments prevent bidders from placing small, incremental bids which may result in a lot of bidding activity but a lower winning bid amount.
In GalaBid when creating an item a fixed increment amount must be entered. Note this can be edited at any time while the auction is open.
For guidance on setting starting bids read our blog post on the topic - 9 Considerations when Setting Starting Bids