Find out how often a bidder’s financial position impacts their bid or move
We’ll get to bidding strategies and how they influence the price, but first, let’s take a look at the rigour of the bid process.
Are you in a fight with a rival bidder? Good luck!
PREDICTING THE PRICE
Fundamentally, when a buyer or seller of a good or service item enters into a sale, their objective is to maximise the return on their investment through owning the item.
The process of the sale of a commodity or good is to make the seller earn a return that’s proportional to the amount they put into it (i.e. they would have paid the producer or wholesaler or their source for this item).
Your primary objective as a buyer or seller of good or service is to maximise returns – your second objective is to maximise margins, so you should have neither specific objectives in terms of what to sell your items for nor different objectives in terms of what to buy.
PRICE MISTRUST
There are a number of reasons why you are motivated to strike a deal with someone. The major motivator is that you don’t want the item to go to waste.
For example, if you buy an item at an auction and the eventual successful bidders do not pay the agreed price within a reasonable timeframe, you may be perfectly content with having your investment stay in the bin.