---
title: How Auction Minimum Bidding Increments Work
description: How Auction Minimum Bidding Increments Work Minimum Bidding increments and the logic with Auto Bids
---

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# How Auction Minimum Bidding Increments Work

## Minimum bid increments set the minimum next highest bid a bidder can place. They can place any amount above this minimum.

### **Understanding the Basics**

When creating an auction item, you can set two important values:

- **Minimum/Starting Bid** – The amount where bidding begins
- **Minimum Bidding Increment** – The smallest amount that a bidder must increase the bid by

The smallest possible increment allowed is $1. You can set higher increments depending on the value of the item (e.g., $10 or $25 for high-value items).

### **Why Bids Might Not Follow Exact Increments**

Trellis uses **minimum** bidding increments, not **restricted** increments. That means donors can place bids that are *more than* your set increment—but they aren’t limited to exact multiples.

For example:

- If you set a **$20 starting bid** with **$5 increments**, bidders must place bids **at least $5 higher** than the current bid.
- However, they could also bid **$6**, **$10**, or **any higher amount**.

This allows for more flexibility and encourages donors to give what they feel inspired to offer.

### **How Auto-Bidding Affects Increments**

Let’s say your auction item starts at **$20** with a **$5 increment**:

- **Alex** places a manual bid of **$27**. That’s fine—it exceeds the current bid by more than $5.
- **Bill** sets an auto-bid with a max of **$77**. The system enters his bid as **$32** (which is $5 over Alex’s).
- **Chad** sets an auto-bid max of **$80**. Trellis auto-bids in $5 steps between Chad and Bill until:
  
    - Bill reaches his max of **$77**
    - Chad then outbids him at **$80**

You might notice the final bids don’t line up perfectly with your original increments, and that’s okay. The **auto-bid system always ensures** the bids are:

- At least your minimum increment above the previous bid
- Reflective of each bidder’s **maximum willingness to pay**

This ensures fair outcomes while maximizing funds raised.

### **Why the Increments Work This Way**

The goal is to:

- Make bidding **as flexible and competitive** as possible
- Prevent underbidding when awarding an item to the next-highest bidder
- Capture the **full value** of what each donor was willing to pay, even if they didn’t win

### **What Happens in the Case of a Tie?**

If two bidders place the same maximum auto-bid:

- The **first person** who set the auto-bid wins
- Trellis timestamps each bid and gives priority to the earliest one

---

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