posted on December 2, 2003 02:23:23 PM new
I certainly don't want to make personal attacks on anybody - so please don't get offended! In part, I want to understand WHY people sell with reserves instead of starting the bidding at the lowest acceptable price?? I wouldn't want anyone to risk his/her investment by starting an auction at unrealistically low starting bid..low ticket and high ticket items.
Do reserves really sell items? Are you certain you aren't scaring away buyers who hate reserves just to get a few more counter hits from "lookers" and "teasers" (the ones who retract the bid when the reserve amount is reached)? Are there studies done on this??
I'm like Pat and Linda..I might watch a reserve auction but I am not going to fiddle with it. Chances are I won't get back to it before auction end.
Lucky for me postcards are not likely subjects for reserve auctions and I have had nothing but bad experiences in starting bidding out at low "come-on" starting bids!
posted on December 2, 2003 04:49:29 PM new
I'm still laughing over tomwiii "VD Experts"
sorry.
OTOH...I rarely bid on a reserve auction as a buyer. If I really want it, I will email & ask for a hint as to what the reserve price is.
I normally just start my auction at the minimum I would accept for my widget. The only time I used a reserve I had tons of people emailing me for the reserve price, yes, just like I do.
posted on December 2, 2003 05:08:39 PM new
If I use a reserve, which is only in rare cases where I have something of high value than I definitely dislose the amount. The reason we use them instead of starting with the amount to begin with is simply to get people's attention who are surfing items. It's really that simple I think. It's mind games maybe but we've all got our marketing tips and tricks we do. If I see something for $5.99 I know is worth $50 I'll be anxious to look at it. If I see it for $50 I may just skip it. It's not a "mystery" or "exciting" to find out what a deal it is and then well, you've got them to take a peak at your time. I don't see anything wrong with that. It's a preference I suppose.
posted on December 2, 2003 05:31:32 PM new
Hi all,
Tom, to answer your question "Do most VD'ers think reserves should be put on $30 auctions?" I don't know about "most" but for me, the answer is a resounding NO!!
Seeing a reserve on that kind of item would make me think the seller figures it's worth a million bucks and I'd hit that back button in a flash.
Matter of fact, as a buyer, I hit the back button regardless of the value of the item if I see a reserve that's not disclosed in the auction unless it's some super-rare thing I absolutely cannot live without. And, that reserve better be right up top or I don't even bother to read the listing.
As a seller, I've used a reserve occasionally when I'm selling something that I feel is going to appeal to a limited group of buyers. Like Tom, I show the reserve. (I put it in the Location field...)
I see little point in using a reserve on a low priced item (less than $25-30 in expected sale price) and I don't do that. Makes more sense to me to have great pics and a good write-up and put a BIN on it.
In the last few months, I sold almost identical items for $35 BIN three separate times. Others were selling on eBay for under $10.00. Matter of fact, I bought one of them for $13 including shipping.
posted on December 2, 2003 06:38:53 PM new
In the last 6 months I bought not one,but two dvd RECORDERS-these are in the 600-700 range for a decent one.I consider these high ticket items-I got one for copying all my movies onto and the other hooked up to my satelite because it has a 80GB hard drive on it.I saw one that the starting bid was 100.00
Of course I immediately took a look and found out the reserve was $800.00.That price was a little high the for brand I was looking for.
Like Tom said,it got my attention,but it irrated more than anything because it attracted my attention but also wasted my time.Yes the low stating bids will attract attention,but when they have reserves on them,I usually look elsewhere.In fact I did buy one the had a BIN between the 600-700 range,because most of the recorders were going for that price anyway.In case any of you sellers are all interested,I do use the buy it now quite often even its a little more then I think it might go for-simple reason is I dont have to wait to see if I won
the item,I dont have to snipe it and I think its worth a few dollars more to have it right away.I dont use it all the time,but its nice to have that option.
posted on December 2, 2003 07:24:15 PM new
::I want to understand WHY people sell with reserves instead of starting the bidding at the lowest acceptable price??::
It's psychology Neg pure and simple. If I start a signed & numbered silkcreened poster off at $350 the posibility of bids is very low. If I start it off at $19.99 with a $350 reserve history has tod me that it will attract numerous bidders and attention and will 9 times out of ten end up meeting or exceeding the reserve. If I list a piece a couple times and the reserve is not met I am able to discern maket interest in the piece by the average ending bid then evaluate whether or not I am willing to part with it at that range.
~~~ ~~~ ~~~ ~~~ ~~~
If it's really "common" sense, why do so few people actually have it?
posted on December 2, 2003 08:31:38 PM new
Here we go again........I thought we had finally dispensed with this topic since Ebay raised the reserve price fee to a ridiculously high 1% of the reserve.
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.My opinion is this....those that think that reserve auctions are a waste of your time, or the realm of scamsters and fraud artists.....are simply paranoid naboobs. You just don't understand auctions. Check under your bed tonight to see if the boogy monster is there. There are far more important things to look out for as a buyer when properly protecting yourself from fraud. Reserve abuse does occur on Ebay, and in real life, but on Ebay you really should be more concerned with the much more common misrepresentation, or non-delivery of items.
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.Ebay started just about 10 years ago. Auctions have been around for 300 years before this. In the real auction world, like at Sotheby's and Christie's, reserves are there, and they have been from the start. They are not a way of cheating you, they are a way of a seller protecting their investment. Museums, Corporations, charities, institutions, and the private people that bid in these auctions have no problem with reserve prices, and in real life reserve prices are never disclosed. They understand the reserve auction process, unlike the great majority of Ebayers.
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.People that truly understand auctions simply bid what they are willing to pay, period. If the price that they are willing to pay meets the reserve then we have a sale. Otherwise, no sale. No games. No scams. No waste of time. So if you see an auction with a reserve, go ahead and place a bid that's the most you're willing to pay. It will take you 5 seconds. If your time is too valuable to waste 5 seconds then you shouldn't be bothering with Ebay to begin with.
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.I do think that under Ebay fee rules, every seller has to set their own price on which they want to set a reserve. To me, a reserve is not worth paying for on Ebay on an item under $200. And on an item over $1000, it's too expensive(1%.....that would be $100 on a $10000 item).
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.It's a fact that the lack of reserve prices has turned Ebay into more of a Wal-Mart than a real auction house. And since Ebay has raised the reserve fees it has been one of the contributing factors that has resulted in lower prices for sellers.
posted on December 2, 2003 09:41:04 PM new
Reserve fees are very relevant. The insertion fee is based on the reserve price, not the opening bid price. Indiscriminate use of reserves can cause your insertion fees to snowball very quickly. A reserve is nothing more than one more tool available to the seller to help him make a profitable sale, the same as photo presentation, description detail, auction duration, gallery, featured etc. Each item you list has to be analyzed on it's own merits and a decision has to be made concerning which optional features you feel will be most likely to be a sound investment. There is no way any successful seller can say he is 100% pro or anti reserve unless he only sells 1 particular item exclusively. I personally very seldom use a reserve, but I listed an auction last week with one. (The first and only one this year)so I can't say I'm against reserves. Sometimes they can work very well to a sellers benefit. The trick is for that seller to know when that time is.
The light at the end of the tunnel will turn out to be an oncoming train.
posted on December 2, 2003 09:56:40 PM new
Reserve fees ARE irrelevant if the item sells. What you said related to the reserve price. Ebay charges you $0.00 in reserve fees if the item meets the reserve price (and thus sells).
------ "Bend over backward for the customer. Don't bend forward."
posted on December 3, 2003 02:05:19 AM new
>>.Ebay started just about 10 years ago. Auctions have been around for 300 years before this>>
I think this explains a lot of the issues with eBay buyers and sellers that have been discussed on this board. Their experiences have been primarily through eBay, and not the outside world. They probably think that if they went to a real auction they might sneeze and inadvertently buy a moosehead for a million dollars.
FWIW, after 12 bids my reserve item sold.
[ edited by Damariscotta on Dec 3, 2003 03:30 AM ]
posted on December 3, 2003 06:02:13 AM new
As I understand this thread the question is "Are reserve auctions wasted on low dollar items?" I don't have an opinion on that questions but a lot of the responses are to the concept of reserve auctions in general. I am hearing "Never bid on them.", "Hit the back button.", "Only bid if the reserve is disclosed." etc. Why? I will bid what I am willing to pay on any item I really want, reserve or not. If the reserve is too high I won't get it. Simple as that. If I find an auction for something special with no reserve I may hope I can get it for a really good price but it is likely that another bidder in my specialized field will find it too. This is the reason I snipe those auctions. If it has a reserve I suspect that the sellers knows the value but there are times when my high proxy meets a reserve that is so low I can't believe it.
At one time, when I still read the eBay boards, every thread that was not a rant against sniping was a rant against reserve auctions. Most started with something like "This is supposed to be an AUCTION but if it was a real auction there would never be a hidden reserve!" Excuse me? Have these people ever been to a real auction? Someone else has already mentioned the existance of reserves in live acutions. I agree. We built a very large specialized collection in the pre-eBay days at live auctions and I know for a fact that any auction that did not say "without reserve" in the catalog might have a reserve on any item. It might or might not be disclosed. In many cases items were simply "bought in" by the auction house bidding for the consigner and the bidders had no clue.
Many of my favorite sellers use reserves and I will bid without blinking for as much, or a little more, than I am willing to pay. When I begin to sell again I will use reserves only for the things that I would cry about if I had to give them away.
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The illiterate of the future will be the person ignorant of the use of the camera as well as of the pen.
Maholy-Nagy, Vision in Motion, 1947
[ edited by photosensitive on Dec 3, 2003 06:04 AM ]
[ edited by photosensitive on Dec 3, 2003 06:04 AM ]
posted on December 3, 2003 01:18:20 PM new
If you reveal the reserved price with the item's description, then why even bother having it at all? Just start the bidding at that number.
posted on December 3, 2003 01:47:55 PM new
Starting with a lower price gets the ball rolling. Bids attract bids.
------ "Bend over backward for the customer. Don't bend forward."
posted on December 3, 2003 05:10:38 PM new
My two cents worth...
When I pull up an auction of an item I want, if there is a reserve I think to myself, "Bummer, wonder what the reserve is"...BUT, if it's an item I really want, I'll place a comfortable bid. Guess what I'm saying is that, while the reserve tag brings with it maybe a slight negative feeling, for me, it won't stop me from bidding.
"Who's tending the bar? Sniping works up a thirst"
posted on December 3, 2003 05:23:15 PM newWhat DOES cost more money is setting a higher opening bid as opposed to setting a high reserve price with a low opening price. The listing costs you more AND you don't get that money back -- no matter what.
This is not true. The listing fee is exactly the same if you list an item for $200 or use a reserve of $200. What is different is you are charged for the reserve and if it don't make the reserve, you are out the reserve fee. If it does make the reserve, then the reserve fee is refunded. I do about 6 reserve auctions a year and 2 in the past three weeks.
The reserve fee is 50 cents up to $24.99, then $1.00 up to $199.99, then 1% there after up to a max of $100.00.
This reserve option is considerably more costly if your items does not meet the reserve price.
Sniping works up a thirst"