Firstly, your dresses are soooo gorgeous! Where were you when my daughter was that small?

I think the bid increment thing is to do with how much a bidder placed as their highest bid.

So if the item was $2 and Johnny bid $6, it would only show as $2.50.

But then when Mary comes along and bids $6.10. Johnny's bid of $6 automatially gets placed but then is immediately outbid by Mary's $5.10 and the new price is $6.1, making it look like the latest bid increment was only 10c...

Is that clear as mud? LOL