Auctions are the public events organized, where the goods are sold to the buyers with the highest bid. Here the people bid on the particular item and the person whose bidding is more should buy the item. The price of the item is mostly decided by the bidders rather than the seller.
- English auction:
This is the most basic type of the auction, you have seen this type of auctions in movies where people bid in the group. Bidders bid after they see the item and raise their price according to demand. The person who gives the maximum price will win the bidding. The manager of the auction keeps the record of all the bids and declare the winner. In some cases, the seller quotes its minimum selling price from there only the bidding starts. No one can buy the product below that price.
- Dutch auction:
In this type of auction, the person organizing the auction fix a particular price of the item and slowly decrease the price. People start bidding and then decide the price that is suitable for the product. This type of auction is profitable for the seller who want to sell large quantities of the product in public. For example, the seller wants to sell an item in a large amount, he will wait for the price to be fixed in the auction. Once the reasonable price of the product is decided, the seller sells its large amount of item to the buyers at the same fixed price.
- Silent auctions:
This type of auction is seen between the big businessmen. In this auction, people bid their price separately, and it is in a sealed format, everyone is unaware of others bid. A Certain period is given to the bidders to place their bid. People see the item and place their bid on a sheet of paper. Then the bid is opened in public, and the person with the highest bid will get the item.
Auctions may be public or private, for example, livestock auction are public auctions. This is similar to English auctions. The item that are sold in this auction are cattle, and other livestock. In this auction, people bid on the price of the item directly with the seller. And if the seller agrees with your bidding, then you can buy the product.
Many livestock farmers raise cattle to earn a great profit. They sell their animals in the livestock auction and earn more money. People raise cattle for various purposes. They feed them as pets, and some feed them to expand their business. Feeding animals and selling a business is exploring day by day.
People buy cattle from the livestock auction only and feed them. Once they grow then they sold them again in the auction at a higher price. In this way, they get the profit in the business. Apart from selling they use their cow to produce milk in the milk farm. Opening a milk farm is also a great business.