What is the 5 minute rule? - The Online Auction, By Schoukens Training Center BV (2024)

FAQs

What is 5 minute rule auction? ›

The Five-Minute Rule

Royalty Exchange uses the “Five-Minute Rule” for auctions. If a bid is placed in the final five minutes of an auction, the auction clock will reset to five minutes and begin counting down again.

The purpose of the 5 minute rule is to stop last minute sniping where bidders wait till the last possible moment to place their bid - even if the previous highest bid was hours before - so that the previous highest bidder has no opportunity to respond before the auction ends.

The highest bidder wins the lot. A special feature is the 3-Minute-Rule. If a bid is placed 3 minutes before the lot expires, this lot is automatically extended by 3 minutes. This only applies to the individual lot number and has no effect on subsequent lots.

Any bids placed inside the final 10 minutes of a lot will reset the clock to 10 minutes, effectively delaying the end time for that lot.

Using the 5-minute rule, you set a goal of doing whatever it is you would otherwise avoid, but you only do it for a set amount of time: five minutes. If, after five minutes, it's so horrible that you have to stop, you're free to do so. Mission accomplished.

Speed to lead statistics: The 5-minute rule

First, it was found you are 100 times more likely to connect with a prospect when you make initial contact within five minutes as compared to if just one hour has elapsed.

Bid at the Last Minute

This online auction strategy involves closely watching the auction timer and then placing a final bid at the very end of the period. For less-active auctions, this method can be a great way to snag an item at a low price.

Popcorn bidding extends each lot's closing time by a set increment (for example, two minutes) if any bid comes in with less than two minutes until closing. This allows for other bidders to have ample time to counter back with another bid if they choose.

Auction sniping (also called bid sniping) is the practice, in a timed online auction, of placing a bid likely to exceed the current highest bid (which may be hidden) as late as possible—usually seconds before the end of the auction—giving other bidders no time to outbid the sniper.

The optimal auction length is seven to ten days. Running for less than seven days = not enough time to benefit from word-of-mouth. find out if they won an item.

What should you not do at an auction? ›

If you're unable to inspect the item in person, be sure to ask for detailed photos or a condition report from the auction house. Don't be rude or disruptive: Auctions can be crowded and noisy, but it's important to be respectful of others around you. Avoid talking loudly or disrupting the bidding process.

eBay and sellers encourage people to bid early is because it makes them more money. eBay's search results show the number of bids an item has received, and the current highest bid.

Many sellers set a time limit on bidding and, in some cases, a “reserve price” — the lowest price they will accept for an item. When the bidding closes at the scheduled time, the item is sold to the highest bidder. If no one bids at or above the reserve price, the auction closes without the item being sold.

Most auction sites now employ a 15-minute rule, where any last minute bid extends the auction another 15 minutes.

Lowest Acceptable Bid means the most cost efficient and effective bid and shall be the sum of all costs, including but not limited to, purchase price, all taxes, delivery, installation, warranty, life cycle cost, operating and disposal costs incurred for determining the lowest acceptable bid meeting the specifications.

Immediate service is critical to your success. In fact, research from The Harvard Business Review and others show that web submitted leads convert 22 times more often when you make contact within the first five minutes.

In a timed online auction, there is no auctioneer taking bids from a live audience in a room. At timed auctions, once the time-period expires, the bidder who has submitted the highest bid wins the lot, provided the bid exceeds the reserve price. Instead, each lot can be bid on for a defined period of time.

This tactic is used to try to prevent other bidders from having a chance to place a higher bid before the auction ends. Bid sniping—including the use of software that places bids for you—is allowed on eBay, but it doesn't guarantee you'll win an auction.

Popcorn bidding extends each lot's closing time by a set increment (for example, two minutes) if any bid comes in with less than two minutes until closing. This allows for other bidders to have ample time to counter back with another bid if they choose.