Many of you have used a traditional auction site like eBay where the person placing the bid at the close of the auction is the winner. Over the last few years there is a new style of auction around called the Highest Unique bids auction.
The way a Highest auction works is that the person who has the highest bid at the end of the auction is the winner. The Highest Unique bid may not necessarily be it; it is the highest bid which is unique from all other. Let's say that you are bidding on an auction and you have bid $5 as a bid, this would be the highest unique bid if either there were no other bids higher than $5 or if there were there were multiple bids at that value (e.g. 2 bids at $6 would no longer be unique).
The trick of bidding on a highest bid is to try and knock the other bidder out to make it unique. For example, if I am the only bidder with a $4 bid on the above auction, this would be Unique (as there is only a single bid), but it's not the Highest. However, if I bid again $5 it would knock your bid to no longer unique and my $4 bid would now be it.
Another unique feature of Highest Unique auctions is that all auctions have a Maximum Bid value that you can bid. Usually this value is a considerable saving on the normal retail price of the product or service, in many cases saving up to 99% off the retail price. For example an item might be worth $100, but the maximum value you can bid is up to $1 in say 1 cent increments. Auctions will also have either a closing date with a minimum required number of bids (in most cases if the minimum number of bids is not reached the closing date is extended) or just a number of bids required.
To place a bid on a Highest unique bid auction a small non-refundable administration fee is charged to cover the auction costs. This is a minimal charge in comparison to the actual retail value of the auction. Many Unique Bid auction sites will discount the administration fees for multiple consecutive bids on the same auction.
Once a bid has been placed you are provided with details of how your bid stands (Usually both online and via email). eg. if it's "Highest Unique", "Unique" or "Not Unique". If you are lucky enough to have the Highest Unique Bid, in many sites they will notify you by email if someone has knocked you out by placing a matching bid at your bid value.
Highest Unique Bids Auctions are closed auctions so no one can tell what others have bid until the end of the auction when the results are posted. Some sites will provide you with a range indicating where the highest unique bid sits, however these ranges are not always helpful because the ranges usually could contain over 100 bidding increments. Other sites will only allow bidders to place a certain number of bids on each auction, this provides bidders better odds as each bidder can only bid a certain number of times, giving everyone an equal chance of winning.
Some sites will run beginner auctions where new bidders can place bids without the fear of the experience bidding tactician out bidding them, others run free auctions to provide incentive to bidders and to get them bidding.
If you are the winning bidder and the value of your winning highest unique bid has been paid then you will receive your product or service. In some cases freight charges are added to the costs, but with many sites freight costs are included in the bidding process.
There are also sites which run Lowest Unique Bid auctions (also known as "Reverse" auctions) where the winning bidder is the bidder who has placed the Lowest Unique bid within the bidding range.
Over the last few years there is a new style of auction around called the Highest Unique bids auction. Tuitbids.com.au is a highest unique auction site specializing in Gift Cards and Vouchers from many major Australian retail stores.
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