Crooked Necks

Posts Tagged ‘end’

I’ve come up with a few theories regarding auction strategies that I think might make sense. In general, it’s obviously a good thing to have a plan(s) going into an auction; are you going to go Studs & Duds or a more balanced approach?

You want to have a plan laid out of certain guys you like and dislike and try to generally stick to your plan. I’m not suggesting that you’re so rigid you don’t make adjustments on the fly and react to the market, but a general outline of how you want your auction to go is huge. If you have the time, it is probably wise to have some sort of plan for both strategies so that if you know you need to go Studs & Duds or Balanced, you can be flexible. I think early on in an auction you can get a feel for how it is going to flow; are people holding their cash or splurging? Normally I would say, “Do the opposite of what you think people are doing”. If people are coming in hot, blowing all their cash on the top tier guys, there are going to be good deals to be had later in the auction and you might be able to clean up if there are guys that you like still left. On the other hand, and this is the trickier one because you might not realize it until too late, if people are holding their money, you should be spending your money on the big name players and let people who hold their cash and get into bidding wars on 3rd and 4th tier players because they have the money to do so.