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What is a Blind Auction?

Well, as the name suggest, this is a totally different kind of auction system where the bids are made IN SECRET, i.e. no one knows how much someone is bidding, UNTIL the auction is over. So all bidders are "blind" to the bids of others. Once the auction is over, either because it has been "passed over" or because the item has been successful sold, then ALL the bids are shown, so everyone can satisfy themselves that there is no funny business going on behind the scenes.


Bidding Fee

Another difference is the "Bidding Fee". Every bidder needs to pay a "fee" to make a bid. This fee is a small fraction of the Target Total (TT), which will be explained below. Currently, the fee is 5% of the Target Total. If the bidder is successful in purchasing the item under auction, they DO NOT need to pay the fee. It is included in the price of their successful bid. For example, if the bidding fee for an auction was 300g, and I made a bid of 3500g, then I will initially pay the 300g bidding fee. But when I have won the auction and need to pay the whole price, I can deduct 300 from 3500, and so I need only to pay 3200g. If you make multiple bids, you will need to pay the fee for each unsuccessful bid.


What is the Target Total (TT)?

The TT is a number set by the auctioneer (me in this case). It basically states the total gold I need before I'm willing to part with the item and I announce the winner. The TT is the total of ALL fees paid + The price of the highest bid.

TT = Total Fees + Highest Bid

So, for example, if I put up a Demonic Pitchfork for Blind Auction, and I set the TT at 20,000g. This means that the auction will run until it either:

a) times out or
b) until the Fees + Highest Bid > 20,000g

If the auction times out it is "passed over". The item will not be sold. That is, if the time of the auction runs out and Fees + Highest Bid remains less than the Target Total. Please note that auction Bidding Fees WILL be refunded!

If b) happens, then the auction is successful and the item will go to the highest bidder. Please note that the auction stops as soon as the Target Total is reached to ensure that I don't scam you all by continuing to rack in Fees!


Why do we have to pay to make a bid?? What a rip off!!

The Fees, and the blind system, are the two key ways why this system works. It allows people to buy items at a MUCH lower price than you can get in the Marketplace or here in the Exchange. How? Okay, let's assume I put Demonic Pitchfork on a Blind Auction. And the results are:



As you can see there are 11 bids. And the winning bid is 10987g, which is WELL BELOW the current prices in the Marketplace or on the Exchange. How is this possible? How can I make a profit? Well, that is easy. I make a profit because of the small fee you pay when you make a bid. These add up! This means the winning bid can be very low. In fact, the more bids there are the lower the price of the winning bid will be!

So I, as the seller, win. And you, as the winning bidder, also win by getting a low cost item. It's a win-win situation on both sides. And the losers? Well that would be the unsuccessful bidders. But remember, the Bidding Fee is only a very small fraction of the Target Total, so they do not lose everything. And they can make bids and win on other Blind Auctions to make up for any losing bids.


How do I make a bid?

1. Look at the current auction, it's in a picture at the top of the first post on this thread. This will show you the Auction "ID Number", how many bids have been made and who made them. It will also show you the "duration" left in the auction as well as the Bidding Fee.
   
2. For EACH Bid, then send a trade with the Fee gold to me WITH the auction ID# AND with your bid price in the title. Valid examples are:
   "ID#:1136264687 Bid:97651g"
   "ID#:1136265432 Bid:650g"
   "ID#:1136265561 Bid:1500g"
   
3. Complete the trade once I have confirmed it. When you have completed the trade I will add your name to the list of current bidders. You can check the list yourself. If you have completed your trade and do not see your name there then you need to tell me.
   

That's all there is to it. Trades will be accepted in the order in which they are received. Please note that ALL bids MUST be unique, i.e. you cannot make a bid with the same price as someone else. You can make multiple bids (although you will need to pay multiple fees).

Huh?? No, no scam at all. Quite a good system actually but I've found most people simply either don't understand it or bother reading so I've basically had no success with it. crying

How is it good? Well, you don't pay your bid price unless you're successful. So it's not like the 'donation' scams where you donate and whoever gets highest gets the item. All you pay is the bid fee, basically like an entry fee or a lotto ticket, only your winning is determined by you and your bid price rather than just dumb luck.

The other good thing is that the more people that bids the lower the bid price needs to be. Everyone wins basically. But it seems like people don't get the system and confuse it with donation scams.