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Most auctions follow the auction format where the highest bid wins the item. However there is another auction format that has been getting more popular in recent times. This is the reverse auction. The interest here involves the potential to get very expensive items at a tiny fraction of their actual value. Why is a reverse auction so called? The idea here is that the price is decided by the people who bid on the item. Generally speaking the auctions are for brand new items and the recommended retail price will be indicated at the start of the auction. As soon as the auction starts people will start to place bids. The price of the winning bid will not be known until the auction is over; however you will be told when you place a bid whether or not it is the current lowest unique bid. This is the key factor of the reverse auction - the winning bid must be unique. If more than one person wagers the same low bid, neither will be counted. The auction will usually run for a specific length of time though, in much the same way as a more traditional highest price wins auction. This is usually over the space of several days but it can vary. How can you win a reverse auction? The way to win a reverse auction is to be the sole person who places the lowest bid. Let's say an iPhone is put up for auction and lots of people place bids on it to try and win it. Of all the bids that are placed, there are a number that are at the lowest end of the range of bids. Let's suppose two bids are placed for £10 each, one bid is placed for £15, two bids are placed for £20 and four bids are put in for £25. In this case, although the lowest bid amount is £10, it is not a unique bid. The lowest unique bid is £15 so it will be that person who will win the iPhone for that amount. So it depends on how many bids are placed for each amount as to what price will be paid for the item when the bidding ends. One of the good points concerning reverse online auction sites is that they will generally get a lot of attention and a big following. The temptation of trying to get an expensive item for a very low price can be all it takes to get people to put in bids. Typically you will be required to pay a small amount per bid as well. This means the owner of the item will receive the prices paid for the bids as well as the winning bid from the successful bidder. Generally speaking the items available in a reverse auction will be expensive ones that plenty of people will be interested in buying. This is why you will see mobile phones, webcams, cameras, expensive watches and other similar items available via this auction format. BidGrid operate a kind of reverse auction website where you can get hot deals . The auctions are very exciting and offer you the chance to pick up great products at amazing discounts. Find out more at www.BidGrid.co.uk
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