The trick to winning on eBay is to bid the maximum amount you'd possibly want to spend in the last 10 seconds. This is probably what the person beating you is doing. When the auction closes, if someone else has a higher maximum bid than you do, eBay automatically takes your highest bid, increases it by a dollar and the auction win goes to the person with the higher maximum bid. (Sorry if you already know this)
You can see this happen in other situations. For example, if a person has already placed a bid on an item and you bid, and you still aren't the lead bidder (i.e. it appears someone auto-outbid you by $1 or something), that's because the other person has a 'max bid' higher than your current bid. You can keep adding bids in increments to find out what their maximum bid is to determine whether or not this is the case.
There is one other F4F member that I got caught in a bidding war with on eBay some time ago on one of Herman's auctions. Ever since then, I've never bid on another set of cuttings. I think it was for Gino's Black or Sal (Gene's/EL) cuttings. I got tired of getting my ass handed to me on several auctions during Thanksgiving with family (away from home), so on the last set of cuttings, I got pissed and set my maximum bid at $75 or something 5 seconds before auction close (the value was at $24 or something prior). Well, the other forum member had a maximum bid greater than $100, so this forced the auction to close out at $76, if I recall correctly. Good for Herman, but the other member got sacked with an outrageously high bill on the cuttings. I posted here about it and the forum member reached out. We split the difference on the auction and split the cuttings (A+ to you still, sir).
Word to the wise: Be careful on eBay, there are folks out there who will give you a run for your money... and it can hurt sometimes, as evidenced above.