What is a vendor bid form? Simply said, a vendor bid form is a bid form by a vendor. But there is not so much talk about vendor bid form. But there is a vendor bid, and bid form?
A vendor bid is a type of bid at an auction which is initiated by an auctioneer, on account of the vendor, with no intention to buy. And when does this happen? Why is there such kind of bid?
The internet says that a vendor bid can be made by the auctioneer on behalf of the vendor and is used to start the process if no one in the auction has raised their hand with an amount.
On ebay, an online auction. things work almost the same, except for the time limit. On ebay, there is a time end for the bidding. So the actual price to be given to the last bidder is the price when the time of the bid ended.
Now, things work weird when there is a dummy bidder, (that is anyone related to the vendor and who tries to raise the bid) with hopes that someone will compete with the dummy bidder and bid a higher price. That poses a lot of questions. But things just keep going on as long as the price is tolerable to the bidders. Hence, it does not matter that much if the dummy bidder (it could be the vendor himself with a different account) is playing some tricks. If real bidders are serious of the item that they bid then, they will really pay for it. That is just how things work.
Vendor Bid vs Dummy Bid
So now, we have two kinds of bids, the vendor bid and the dummy bid? Let us make a clearer distinction between the two. The common thing between the two is that they are bids without any intention for buying. The difference lies in that the vendor bid is announced, whereas a dummy bid is not. Vendor bid made by the auctioneer, and sometimes by the vendor himself, in most cases is legal.
Dummy bidding is a serious offense. In some states, dummy bidders can be charges as high as 24,000 usd.
But has anyone really got caught?
The news would confirm, Consumer Affairs Victoria, for example, has over the past 18 months had its own inspectors attending auctions and with more than 1,000 auctions each weekend, they haven’t caught a single dummy bidder.
Well, no one. Clark Kent knows Superman. Peter Parker knows Spider-Man, Bruce Wayne know Batman. The genuine bidders, the crowd, they just know there is a mystery bidder.
What is a Bid Form?
The net says it is a standard printed form given or sold to bidders so that they may submit the information required for evaluation of the bid, in correct format and sequence.
So when you bid, you will be following a format. But the vendor may just provide it for you, and all you need to do is fill in the blanks.
Purpose of a Vendor Bid
The very purpose of a bid form is to raise the starting bid of an auction. This is done by the auctioneer who raises the bid with the knowledge of the vendor. But he does raise the bid, not because he has plan to buy the auction or the item being auctioned.
For example, but of course we will make mentioned of the same example later on, an auctioned property has a starting price of 1000 USD. The auctioneer, with the knowledge of the vendor, will have to make a bid but without the intention to buy. Without the auctioneer making a bid, the starting price would remain as is. Any any genuine bidder may bid on that price.
What does “passed in” mean in vendor bid?
Oftentimes, a vendor will have minimum reserve price for the bidding to complete. So if you have been bidding and you have not reached the minimum price for the item, your bid will be cancelled or will not be carried out. And when that happens, usually a vendor will give additional time for more vendors to bid.
In the above, we made a general discussion about vendor bid. But there are actually many kinds of bidding. The following are: Online Bidding (Unique, Dynamic), Procurement Initiatives, Off the Wall
There are two kinds of online bidding. The unique and the Dynamic
Unique Bidding is a kind of bidding where in bidders bid for the most unique offer. For example, bidders 1, 2, 3, 4, 5. Bidders 1, 2, 3, 4 offer the same bid, but bidder number 5 is unique. So the winner is Bidder number 5. This can be a kind of bidding in which the winner is the one with the strangest, the most modern, most different concept.
Dynamic Bidding. This is is a kind of bidding where a vendor set his own price for the item. The bidders will bid until the set amount is reached. This is the kind of bidding on Ebay.
The other kind of bid would be,
Timed Bidding Timed bidding is a kind of bidding where in bidders bid with a maximum amount in a defined time period. Same as on Ebay, but does not have to be online.
Procurement Initiative. This is the kind of bidding we usually encounter in some government agencies. In this bid, individuals or institutions may propose for a project, and the sponsor may study the proposal. If they are pleased, they will approve it, and the proposal will be funded. The idea behind is to get an award.
Bidding off the Wall. This is a bidding where the auctioneer bids on behalf of the vendor. For example, if a property or unit is up for auction or bidding, and there is only one guy who is interested in the item. Let us say the reserve bidding price has been set to 1,000 USD. This bidder is ready to but the item for 1,150 USD. The bidding may start at 800 USD. Without an auctioneer, the starting bid would remain at 800 USD. But with an auctioneer, he may raise it to 850 USD. This is what we call vendor bid. The bid by an auctioneer that has the vendor’s knowledge. Then the auctioneer may go as far as 900 USD. The guy who wanted the property may bid it at 1000 USD. So he gets the property, at lesser amount. But at the same time, the bid was raised to 1000 USD, thank the the vendor bid by the auctioneer.
There are many kinds of bidding, as we have mentioned earlier. Bet let us use this time, in specific, the process of bidding online on ebay. Of course, we do not use any bid forms. But the process is the same, as the form online on ebay, is already provided, and you just have to fill in the correct information.
Bid in the final moments of the auction for the best advantage. This tip is not only for you, but for all the bidders of the item of interest. Why is it smart to bid on the final moments? Let us say there are many of you bidding in that particular product, at the earliest and remotest time possible. You are not only increasing the price of the item, but you are also wasting your time. Unless you are not available in the final moments of the bidding, say the end time of the bid is tomorrow, and you will be off somewhere on that day for important matters. You are not sure, but you just make a bet. You just have to bid. But otherwise, reserve fighting a bid with other bidders in the final moments, probably in the last 5 minutes.
Know the item. Knowing about the product specs is one thing. For example, a Playstation 4. But knowing the product, the item description is another thing. The item could be malfunctioning, or not working, or bad looking. Look at the accompanying photos. Read the description where the vendor describes the quality of the item.
Know the seller. When you want to know the seller, know its ratings. Is it 100 percent, or does he have a bad reputation as a seller? Does he not describe the product well? Does he not return broken items?
Know eBay’s rules. Well, if you have been ebaying for years, you would know how things work. But if you just a starter, you may have to read the basics. Such as how to register, and how to pay.
Commit to a maximum price you want to pay. The rule is simple, pay what the price that you bid.
Value your bid wisely. If you are really serious in bidding the item, bid at a maximum price. Anyway, if you happen to be the winner, you may have price lower than the price that you bid.
Re-evaluate your bid. Just because you made the highest bid, does not mean, you will end up as the winner in the bid. So always get an update. You may be outbid by some competing bidders.
Set your bidding interval. There are really no other techniques in bidding, except that you make yourself appear as the last bidder.
Check your bid responses to catch problems early. There maybe some technical concerns on ebay, make sure you respond to them. This is to prevent problems.
Bid safely. It simply means, bid safely.
Bidding using bid forms is almost the same. The keyword is to know who you are bidding, and what you are bidding.
Who is the vendor? Check who is the vendor. Is he the owner, or just a second party. If he is not the owner, then you likely will not have better chance to make some negotiations. Negotiations is much easier with the owner that with someone who is a delegate or an agent.
Who is the auctioneer? Do check if the auctioneer is really a distant and not a relative with the vendor. If he is with the vendor, he will likely favor him than he will for you. Make sure he is a credible one, a licensed.
What is the auctioned item? Check the auctioned item. Check its background. If it is a property, is it registered, is it titled? Does it have official documents?
Requirements for bidding. Check what are the requirement for bidding. Some vendors may require you to deposit specific amount, which will be deductible if you happen to be successful in your bid. Otherwise, if you can’t bid, it will be returned to you. They will also do some background check on you. The purpose of which is to have only genuine bidders in the auction, so as not to ruin the auction.
In an auction, there is some sort of price bracketing. That is, the price that one is willing to pay, or the price that one is willing to receive.
Bid price is the maximum price that a buyer is willing to pay for the vendor.
Ask price is the minimum price that the vendor is willing to receive.
Make Offer. There is also an option called make offer. When a buyer or bidder decides to skip the bidding process, and decides to make an offer, which may be higher than if he just bids, he may make an offer. What happens is, the bidder makes an offer of price lower than the asking price of the vendor. And if the vendor agrees, then that closes the deal. He wins the auction.
Counter Offer. When the seller when offered with a “make offer” price, decides that the offer is too low, she may respond the “make offer” with a counter offer, a price higher than the make offer price, but lower than the previous, asking price.