> For the complete documentation index, see [llms.txt](https://docs.tipo.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tipo.io/tipo-auction/~/revisions/3uOn584ZFy41DoorDGbA/faqs/how-buyout-price-works.md).

# How Buyout price works

### What is Buyout price?

Setting buyout price allows bidders to instantly purchase at a specified price an item listed for\
sale through an online auction.

**Buyout price** is the price that, if accepted by a bidder, immediately ends the auction and awards the item to him/her.

You should select “Enable” to turn on this feature and fill in the amount in the “Buyout price” field. 

### Set up Buyout price

In the Auction you are creating/ editing: 

* Tick to the check box **Automatically close the auction when a customer bids the buyout price** if you want to enable this feature.
* Tick to checkbox **Show buyout price on front store** if you want to show the buyout price on the front end**.** 
*  Enter the price amount: there are 2 ways to place the buy out price:

– Fixed: you place a price you want.\
– Percentage: The buyout price will be calculated based on the  product price

<figure><img src="/files/H3lE4dnvX8WZIuxLl9OQ" alt=""><figcaption></figcaption></figure>

Here is the buyout price on the frontend:&#x20;

<figure><img src="/files/GdDoXVj4Cj4bKjqzQBqk" alt=""><figcaption></figcaption></figure>

### How it works?&#x20;

* **Set a Buyout Price** for the auction product when you create or edit the auction.
* During the auction, customers will see the **"Buy Now at \[Buyout Price]"** option below to the bidding button.
* If someone clicks it and completes the checkout:
  * The auction will **end immediately**.
  * The product will be **sold to that customer at the buyout price**.
  * Other bidders will no longer be able to place bids.

Example:&#x20;

Assuming that you enable Buyout price and set this price at 30,000.

If a bidder places a bid amount > or = $30,000 (more than or equal to $30,000), he will win this auction at once (the auction will be closed then).&#x20;

After that, email notification and email invoice will be sent to him to proceed to checkout. Also, he can check the bid history and checkout right on “My account” page.

<figure><img src="/files/mj7T9dNK2f9PO7YNSXmR" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/fXlY1LpuzchUlIovIJIJ" alt=""><figcaption></figcaption></figure>