But you guys are saying (if I'm getting this right) that my chances of getting an item for less is to wait to the last moment so that other watchers don't get a chance to top it. So I still don't go past my $25, just that my chance to get it for $15 or whatever is better.
Exactly. You're not giving anybody else time to think about re-bidding higher than what you did.
Say the auction starts at $5, and they put a $15 max on it. You do nothing...end of the auction comes, you throw a $25 max bid in, and the next thing they know, you won the auction for $17.50 with a second or two remaining.
Now, say they have a $15 max on the $5 starting bid, so it's showing $5. You throw in a $25 bid, and you have it for $17.50. They realize they're out, so they throw in a bid for $20, and you still bump them, so they go $22, and you still bump them. They quit. You're at $22 now. Then some other shmo comes along and throws a $35 bid in and it's at $27.50. You're out of the bidding. Some other guy comes along, sees the $27.50, and bids $30, and pushes the other guy up to $30, where he finally wins it.
See the point? It can be a vicious cycle. There's no point showing your cards early on.