The short answer. Proxy bidding lets a bidder enter the most they are willing to pay for an item, called a maximum bid. The auction software then bids for them, one increment at a time, only as far as needed to keep them in the lead. In MobilBid:
- You never pay more than needed. If nobody bids against you, you win at the current bid, not at your maximum.
- Your maximum stays private. Other bidders see your bids, never the limit behind them.
- If someone goes past your maximum, you get an outbid alert by text and email and can bid again.
- If two bidders set the same maximum, the one who set it first wins.
Proxy bidding is one of the main reasons mobile bidding works better than paper bid sheets. A guest can set a maximum and go back to dinner, the golf course or their evening at home, and still be in the running when the auction closes. This guide explains how maximum bids work, step by step, with worked examples of how they play out against other bidders. The rules described are the ones MobilBid applies.
What proxy bidding is
Proxy bidding goes by several names: maximum bidding, automatic bidding or auto-bidding. In MobilBid, bidders set one with the Auto-Bid button on a silent auction item. The idea is the same everywhere: the software acts as the bidder's proxy, placing bids on their behalf up to a limit they choose.
It mirrors what a sensible bidder would do in person: bid just enough to stay ahead, and stop at the price they decided in advance. The difference is that the software never steps away from the table.
How a maximum bid works, step by step
Every silent auction item has a starting bid and an increment, the smallest amount by which a new bid must beat the current one. When a bidder sets a maximum, these rules apply:
- The first bid. If the bidder isn't already winning, their Auto-Bid places the next valid bid straight away: the starting bid if there are no bids yet, or the current bid plus one increment.
- Answering other bids. Each time someone else bids, the Auto-Bid answers with that bid plus one increment, as long as that stays within the maximum.
- Near the limit. If the competing bid is less than one increment below the maximum, the Auto-Bid bids exactly the maximum.
- At the limit. Once the maximum has been bid, the Auto-Bid stops. If someone bids higher, the bidder gets an outbid alert and can raise their maximum or bid by hand.
- A tie. If a competing bid exactly equals the maximum, the Auto-Bid matches it and wins the tie, because its maximum was set first.
Worked example: one maximum bid
A cottage weekend has a starting bid of $200 and an increment of $20. Anna sets a maximum of $400. Ben bids by hand.
| What happens | Ben bids | Anna's Auto-Bid | Current leader |
|---|---|---|---|
| Anna sets a $400 maximum | – | $200 | Anna at $200 |
| Ben bids | $240 | $260 | Anna at $260 |
| Ben bids again | $320 | $340 | Anna at $340 |
| Ben bids close to her limit | $390 | $400 (her maximum) | Anna at $400 |
| Ben goes past her limit | $420 | No answer | Ben at $420; Anna gets an outbid alert |
Two things to notice. First, if Ben had stopped after his $320 bid, Anna would have won at $340, not $400: a maximum bid only spends what it must. Second, when Ben bid $390, one increment more would have been $410, which is over Anna's limit, so her Auto-Bid bid exactly $400 instead.
Worked example: two maximum bids
When two bidders both set maximums on the same item, the higher maximum wins, at one increment above the lower maximum. Same item: starting bid $200, increment $20.
| What happens | Bids placed | Current leader |
|---|---|---|
| Carla sets a $500 maximum | Carla's Auto-Bid bids $200 | Carla at $200 |
| David sets a $350 maximum | David's Auto-Bid bids his full $350; Carla's answers $370 | Carla at $370; David gets an outbid alert |
| Emma sets a $500 maximum, the same as Carla's | Emma's Auto-Bid bids $500; Carla's matches $500 | Carla at $500, because her maximum was set first; Emma gets an outbid alert |
This is why setting a maximum early can pay off: in a tie at the same amount, the earlier maximum wins. It is also why a bidder who is serious about an item should set their true limit, not a round number they hope will be enough.
Why proxy bidding helps a charity auction
- Guests can bid and get back to the event. Nobody has to stand by the item table or keep checking their phone.
- Bidding keeps going while guests are busy, at dinner, during speeches or out on the course at a golf tournament.
- Supporters at home stay in the running without watching the auction all evening.
- It's fair to everyone. The same rules apply to every bidder, and nobody pays more than the competition requires.
“Mobile bidding makes events so much easier than getting up, looking for a bid sheet to update at in-house events.”
Tips for bidders
- Set the most you'd truly pay. You only pay what the bidding requires, so a realistic maximum costs nothing extra.
- Set it early if you know you want the item. An earlier maximum wins a tie.
- Watch for the outbid alert. It means someone has gone past your maximum. You can set a new, higher one from the link.
- Raising your own maximum never bids against you. If you're already winning, a higher maximum just waits.
Tips for organizers
- Choose increments with proxy bidding in mind. Maximum bids step up one increment at a time, so the increment sets the pace of the bidding. Our guide to planning a silent auction covers starting bids and increments.
- Explain maximum bids on your table cards and in your welcome message. Many guests haven't used them before.
- Know where it applies. Maximum bids work on silent auction items, not on live auction items or items with several winners.
- Ask the MC to mention it early in the evening, when guests are browsing.
Mobile bidding on guests' own phones
Mobile bidding is what makes proxy bidding practical at a charity event. Early systems ran on rented tablets and a dedicated wireless network, set up by technicians. Today, guests bid on their own phones, so there is nothing to rent and nothing to learn: everyone already knows how to use their phone. With MobilBid, guests text a number, get a link and bid in their browser, with no app to download.
Mobile bidding needs a working phone signal or Wi-Fi at your venue. Before the event, open your free test auction at the venue and try registering, browsing and bidding. If pages load slowly, ask the venue for guest Wi-Fi. Read more in our guide to charity silent auctions with mobile bidding, and see every mobile bidding feature.
Common questions
What is proxy bidding?
Proxy bidding lets a bidder enter the most they are willing to pay for an item. The auction software then bids on their behalf, one increment at a time, only as far as needed to keep them in the lead, and stops at their maximum.
Do I pay my maximum bid if I win?
No, not unless the bidding reaches it. You pay your winning bid, which is only as high as needed to beat the other bidders, up to your maximum.
Can other bidders see my maximum bid?
No. In MobilBid, other bidders see the bids your Auto-Bid places, never the maximum behind them.
What happens if two people set the same maximum bid?
The bidder who set the maximum first wins, at that amount. The other bidder gets an outbid alert.
Is proxy bidding the same as mobile bidding?
No. Mobile bidding means guests bid on their own phones instead of paper bid sheets. Proxy bidding is one feature of mobile bidding: it lets a guest set a maximum and have the software bid for them.
Can I raise my maximum bid later?
Yes. Setting a higher maximum replaces your old one. If you're already winning, it doesn't bid against you; it waits until someone else bids.
Run your next auction on MobilBid
Open a free account and build a test auction, or talk it through with us. You only pay when you run a real event: 5.5% of silent auction sales, $220 minimum, $2,500 maximum.