Flow bid lot auction designs have emerged as one of the most groundbreaking order-flow auction designs. Used for price discovery, execution or block-space allocation purposes this design offers numerous advantages over competing solutions; however there may be tradeoffs to keep in mind; for instance open access leaks information value while gated access may encounter bid shading issues while exclusive access has non-execution risk on user side.
Bidders Have More Control Over Their Bids
Bidding processes must be optimized in order to increase efficiency and maximize profitability. Software like Knowify can help streamline these processes by automating repetitive tasks, increasing visibility of every aspect of bid proposal and project management, distinguishing yourself from competitors, gaining insight into why you lost a bid, as well as helping calculate and assess bid-hit ratio.
Marathon bidding is a technique designed to show other bidders they mean business by placing successively higher bids during an auction. But be careful not to outpace them as this could cause them to abandon bidding altogether.
When employing this strategy, be sure to track all bids closely in order to avoid missing opportunities or losing contracts. Also follow up with bids you don’t win; doing so shows seriousness about the project and increases the likelihood of future contracts being won.
Previous modeling of order-flow auctions focused on producing an overall picture of builder behavior without taking market volatility into account. Our analysis sheds light on this subject by showing integrated builders to have a significant share of bids for slots with higher volatility than others, but only account for minor shares overall.
Bidders Have Less Competition
For the best industrial equipment deals, auctions with lower bid activity could be your answer. This may indicate that an item has gone under-recognized and you could get it at much less than expected; just be sure to inspect its condition and brand before making your decision!
Competitive bidding ensures a bidder will win an auction if their offer exceeds those of their competitors, thus making an opening bid with low starting point vital in preventing competitors from bidding on identical lots simultaneously. This strategy works particularly well when bidding on industrial equipment that does not need to be delivered immediately.
Competitive bidding has its drawbacks; for instance, it can lead to anticompetitive practices. Thankfully, such issues can be avoided by expanding the number of bidders; by making it more difficult for bidders to collude.
To limit competition, place a small bid at the beginning of an auction to prioritize it and receive reminders to increase it. Some buyers even use programs called “snipers” that allows them to enter their maximum price in the final seconds of an auction – this way competitors won’t know how high your maximum is and therefore cannot bid on your behalf.
Bidders Have More Flexibility
Bidders can select flexible bid strategies with plenty of leeway when it comes to developing them. Options available to them may include building relationships with suppliers to get early warning of price increases and locking in prices for an agreed period, or including a contingency amount in their bid to account for unexpected materials price changes.
Footprint charts display the relationship between bid and ask volumes on any particular price in a market, making it useful when trying to determine which prices are the most liquid and when to enter or exit it.
The new Optimus Flow chart DOM boasts several additional features to give level bidding more flexibility. Now you can select different response types for line items on a bid form, enabling you to specify what items should or shouldn’t be included in lump sum or itemized bids.
Bidders Have More Options
Flow bid lots enable buyers to set and maintain a maximum bid value without actively engaging in an auction, making this feature especially helpful when prices of products change faster than you can respond manually and wasting your time placing flat bids that don’t increase chances of winning the auction.
Publift has seen yield increase by 70% when publishers implement header bidding within their Fuse Platform, as multiple demand sources can now bid on inventory simultaneously, eliminating dependence on one supply-side platform (SSP). As a result, yield has increased, with improved ad fill rates, higher yields, reduced reporting discrepancies and higher yields all being realized simultaneously.
This flow bid lot method gives buyers a greater chance of succeeding at auctions by guaranteeing they are the highest bidder. When the auction clock reaches p, those with valuations below it cannot afford their product and will drop out.