Auction Dictionary
( Bidera Auction help center glossary )

The First Bidder Discount is a means to save money on auctions for early bidders and also to promote auctions for sellers. If you're the first to bid on an item, you lock in (for example a 20%) discount from the seller if you win the auction. This discount can vary from 1% to 99%.

Why is seller offering a discount? The idea is that by offering this discount an early bid is attracted --and it usually works. Small wonder, because as the first bidder, you earn a substantial advantage over rival bidders. You can leave yourself room to bid an extra 20% higher, or just enjoy the winning discount. By pouncing on auctions early, you assure yourself an opportunity to win at a better price than your rivals.

That's all there is to it, just bid as you ordinarily would. If you bid first and go on to win the auction, you'll pay 20%(just an example) less than your winning bid.

Please, note that if the seller is offering a Buy Now , the First Bidder Discount does not apply to the Buy Now Price. There can be both first early bidder discount AND Buy Now price at a specific auction, but Buy Now will take precedence over First Bidder discount.

An example: Seller A has placed a painting for sale for a starting bid of $5, increment of $0.50, Buy Now price of $30, and First Bidder Discount of 20%.

Bidder B bids $5. If the auction were to end, she'd only end up paying $4(5-20%x5). However Bidder C Bids $17. If Bidder C wins he'd pay $17. Bidder B bids again with $30. Now, if auction were to end, Bidder B(remember, she is the first bidder) would pay $24.00(30-20%x30). However, if instead of bidding the 2nd time, she had chosen to use the Buy Now option at $30, she'd be paying the full $30.

Assuming Bidder B bid $30, let's continue our example auction. Bidder D enters the fray and bids $34. Once again, if auction were to end Bidder D would have to pay full $34. Finally, Bidder B bids $35. The auction closes, and although the final bidding price was higher than Buy Now price, Bidder B only has to pay $28 ($35-20%x35).