skeetypete
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posted on July 13, 2001 01:31:31 PM
a comment was made in another thread about reserve auctions being a waste......i thought a thread might be interesting...Pardon if this has been discusssed before
i personally like them for several reasons 1. you get the big ol buck back it the reserve is met 2.it allows you to start the bids at a low price $9.99 and under, thus attracting more potential and actual bidders because of the low opening bid, and protecting you investment. 2a. i think a high opening bid turns people away while a lower one attracts them and possibly get a bidding frenzy thing it a bidder got in low and convinced himself he had to have it. 3. the reserve keeps the buy it now option open longer because it stays until reserve is meet rather than disappear after the first bid.4. its only a buck and i only do it on high ticket items....i hate to have to shill to get my satisfactory final bid price.......some fairly good reasons in my eyes
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peiklk
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posted on July 13, 2001 01:38:23 PM
I agree.
Reserves are used in real auction houses -- sometimes a snowball needs momemtum to get up to a decent size. There is a difference between the break-even price and the amount you want. If I found a stuffed animal for a quarter that was worth $50. I could take the quarter and break-even -- but is that the lowest I'll actually take for a $50 item???
I might also start using a reserve set a little lower than the BIN price, to keep the BIN offer open longer.
Bothers me to think that some hack could come along and close out a bunch of BINs with a lowball bid and then NPB.
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loosecannon
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posted on July 13, 2001 01:55:01 PM
Reserve auctions are for the faint of heart.
I don't use them any longer--haven't for a long time, and have seldom been burned by selling an item too cheaply.
On the other hand, when I used reserves, I wasted a whole lot of time not selling items that didn't meet reserve. Bidders generally do not like reserve auctions.
Some try to attract bidders by offering Paypal. I do it with no reserves.
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harmonygrove
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posted on July 13, 2001 02:06:16 PM
I'm with Loosecannon on this one.
When I'm buying and see that an item has a Reserve, I just back out and move on.
As a seller, I'd rather lay the cards out on the table and let people know what it's going to take to get an item.
Also, I go to auctions all the time and None of them have reserves. If they did, I'd just back out (the car) and move on.
HarmonyGroveAntiques
Yes, there too.
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capotasto
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posted on July 13, 2001 02:46:17 PM
"I go to auctions all the time and None of them have reserves."
All of the auction houses that offer high quality upscale antiques (Skinners, Christies, etc) use reserves.
Of course if all I went to was cheapo junko yard-sale crapo local flea-bitten household goods auctions, I wouldn't expect reserves either.
The same probably goes for the stuff offered on ebay.
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loosecannon
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posted on July 13, 2001 02:53:55 PM
capotasto
Don't you sell on ebay too? Or are you a buyer? Either way you dealing in, what did you call it? Oh yeah, "cheapo junko yard-sale crapo local flea-bitten household goods".
LOL!
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mrpotatoheadd
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posted on July 13, 2001 02:54:29 PM
I go to auctions all the time and None of them have reserves.
I have had exactly the opposite experience. I have never been to an auction that didn't allow reserves.
I really don't see what all the fuss is about, anyway- an auction with a reserve is no different than an auction without one which already has a bid. To win the item, you either have to bid over the reserve or the hidden proxy.
If you just have to know, you can always ask the seller what the reserve is- many will tell you. You might not find other bidders quite as accomodating when it comes to revealing their max bid, however... 
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NothingYouNeed
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posted on July 13, 2001 02:55:10 PM
I don't think choosing not to place reserves on your items means your items are junk. I used reserves very sparingly in the beginning and then just quit using them all together. Yes, I sell mainly low priced items so I don't need reserves, but low price doesn't mean "cheapo junko yard-sale crapo local flea-bitten household goods".
As a buyer, I never cared whether there was a reserve or not. A reserve is just another "proxy" bid (a legal shill bid) and I either have to outbid the reserve or move on. I don't see the difference between bidding against the seller's reserve and bidding against another potential buyer.
Yea, what mrpotatoheadd said.
Gerald
"Oh but it's so hard to live by the rules/I never could and still never do."
[ edited by NothingYouNeed on Jul 13, 2001 02:56 PM ]
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peiklk
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posted on July 13, 2001 03:07:53 PM
I had an item that had a reserve of $75.00. I set the start price at $1.00.
This was a collectible that I wanted to make sure I got a decent amount out of. I would have "broken even" with about $3.00 or so, but that isn't relevant to the actual VALUE of the item. If I didn't get about $75, I would feel cheated.
So those were the parameters I used. And the bidding began!
It's human psychology.
Once a bid was in for $1, someone was bound to say, "Well I'll pay $1 + $1". And so on. The current price is a given. It's the INCREMENT that lulls people into bidding just a bit more. "Well, I'm committed for X, I might as well pay X+1, it's ONLY another dollar."
Conversely, I could have set the item for $75.00 up front (poor man's reserve). Now all bidders are at a $0 bid on my item -- and the INITIAL INCREMENT is now $75!!! That's a LOT bigger hurdle to get over mentally.
Sure, once someone does bid $75, then that hurdle is knocked down and we're back to a reasonable increment that people can bid up on. But I truly believe that a high starting price, while weeding out some low-ball bidders will hurt you in the long run.
You've got to let the snowball roll and roll to build up. Big Moe! Moe Mentum!
BTW, my item ended up selling for $175+ (others like it had topped at $110). I credit this to momentum.
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kittykittykitty
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posted on July 13, 2001 03:10:29 PM
as a buyer i don't like them, for the same reasons harmonygrove stated. as a seller, i've used them sparingly, and have been surprised to find that they've been met all but once! so at least in my category, buyers don't feel the same way i do about reserve auctions.
kittyx3
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loosecannon
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posted on July 13, 2001 03:15:22 PM
It's the INCREMENT that lulls people into bidding just a bit more
No, it's the EXCREMENT.
Awful looking used Tupperware (with the microwaved-in stains on the sides), chipped glassware, crazed pottery with hairline cracks, wool clothing with moth damage.
I've found a whole new world of things to sell, all thanks to capotasto.
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peiklk
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posted on July 13, 2001 03:23:41 PM
Hey! Perhaps I can sell my collection of twisty-ties from old trashbags and breadbags!
$$$$ here I come!
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loosecannon
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posted on July 13, 2001 03:27:29 PM
Whoa, I don't know...I'd be putting reserves on those.
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mrspock
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posted on July 13, 2001 05:25:25 PM
I had a singer featherweight sewing machine awhile back listed twice with 250 reserve it didn't make reserve either time 240 the first time and 247.50 the second time the second time I emailed the high bidder and said I would take her bid she never responded
Finally said the hell with it listed .99 opening no reserve brought 270.00!!!!
The only time I use reserve now is if it is something I'm thinking of keeping. I listed a tool box recently with 45.00 reserve I figured that for less than 45 I would keep it more than 45 they could have it
Spock here....
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capotasto
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posted on July 13, 2001 05:32:47 PM
"It's the INCREMENT that lulls people into bidding just a bit more
No, it's the EXCREMENT."
Good play on words. ROFLMAO !!
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gravid
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posted on July 13, 2001 08:12:58 PM
I personally do not consider bidding on anything with a reserve.
There is no guarantee that the reserve is anywhere near what I would consider reasonable for the item and I don't have tiime to play games trying to see if my bid will meet reserve and then wonder if another $5 buck would have done it.
If you can't up front tell me the minimum you will take or offer a BIN price you are too sneaky for me.
Reserve is for people with inflated opinions of the junks worth or who enjoy the "hunt" aspect of the auction.
I just want to buy the thing and move on to something else - no sport.
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mrpotatoheadd
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posted on July 13, 2001 08:16:26 PM
There is no guarantee that the reserve is anywhere near what I would consider reasonable for the item...
Just as there is no guarantee that the previous bidder's proxy is anywhere near what you would consider reasonable for the item?
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peiklk
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posted on July 13, 2001 08:18:24 PM
[quote]Reserve is for people with inflated opinions of the junks worth or who enjoy the "hunt" aspect of the auction.[/quote]
A rather rude and directed insult at those here who have stated reasons why they use reserve auctions.
Thanks for playing so nicely!
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harmonygrove
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posted on July 13, 2001 09:45:30 PM
Capostato, if you are going to Christies and Skinners to buy your items to sell on Ebay, God help you.
Yes, the auctions we go to may be considered "flea bitten", but at least there is always room for a profit to be made.
Just got back from one of our flea bitten no reserve auctions. Have an SUV full and spent less than $400. Hope the fleas bite again next time...LOL
HarmonyGroveAntiques
Same handle, different place
P.S. No harm meant...we love bargains wherever they come from!
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newguy
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posted on July 13, 2001 10:11:18 PM
There was a Rhead bowl purchased at Sotheby's for $4,000 that was sold on ebay for $9,000 so it can be done. Sold with a reserve at both places too.
Good old Uncle Grif in his column in the Dec 99 eBay magazine said eSay had a study showing the auctions that had the highest prices and highest sell through were the ones with a low start and a reserve. Since the columns deadline was September, eBay already had this report in hand when Pierre decided to charge us his precious dollar. The resulting stink put a lot of bidders off and made a lot sellers hold back their best stuff.
Most of the auctions I attend have reserves and bidders don't mind at all. Even the flea bitten ones have stealth reserves from the shills and bids from the wall.
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dennis1001
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posted on July 13, 2001 10:11:21 PM
I've had good luck with the few times I've used Reserves, but I usually set them about 70 - 80% of what similar items are going for. My theory is that bargain hunters will throw a bid that high to see if they can meet the Reserve and still get a very good deal. Of course, once the Reserve is met, everybody else can see that as well and we're off to the races (bid wise, that is). I started using reserves when I made the mistake of listing a pricey item on Pro-Bowl Sunday. Some student purchased $80 worth of memory for about $35! Oh, well, at least he paid promptly.
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uaru
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posted on July 13, 2001 10:26:12 PM
'click auction title' reserve not yet met 'click the back button'
That's how it works for me and a lot of people I know in the real world. As a buyer it is a major turn off. Too many other real auctions out there to play games bidding against the seller.
Ask yourself these questions. Why do people put (No Reserve) or (NR) in their titles? Why doesn't eBay give reserve auctions an icon in the listings?
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Microbes
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posted on July 14, 2001 05:13:13 AM
The "proof is in the pudding" so to speak. Do reserves work? It matters not if some bidders don't like them, do they work.
Yes, on high end items, they work. We have an 80% sell thru with reserves, so I have to say they work.
As for "wasting the bidders time", ROFL. You place your best bid, and win the auction or not... How many times have you placed your best bid on a non-reserve auction, just to be out bid. Was that also a waste of time?
Who Need's a stink'n Sig. File?
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mrspock
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posted on July 14, 2001 05:22:32 AM
when i do use reserves I always put the reserve amount in the item description something like "reserve is set at a very resonable 50.00 on this item "
the low opening bid is to get your attention and to get you to look
I do agree some use reserve as a game .....Not as bad now as it used to be when there was no surcharge for reserve but now as then I look at the item ...What is the most I will pay factoring in shipping ?and leave a proxy bid.
Spock here....
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siddielou
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posted on July 14, 2001 06:35:35 AM
When I do list reserve auctions I always state the reserve price at the end of the item description and again at the end of the TOS. Based on a tip here on the boards, I often include the retail rate of the item too. It works and haven't had a problem withi it yet.
Sid.
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skeetypete
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posted on July 14, 2001 06:54:28 AM
sometimes i will give then reserve price in the description, example, low reserve of $200......this could help or hurt, hurt by turning off bidders that think $200 is too much OR helpt those who know what it is and spurs them to go for it because it is in their range.........i have never done an indepth study on this and really have no clue if it helps more than hurts but i suspect at timnes it hurts more and at times it helps more...hmmmmm
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mrspock
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posted on July 14, 2001 09:15:15 AM
skeetypete
I don't see how listing the resrve amount can hurt. If they see 200 as too much they sure aren't going to bid it over 200 If they don't know the reserve but the guy who thinks 200 is resonable may bid otherwise he may move on and not bid thinking the reserve is going to be over 200 and more than he wants to pay
Spock here....
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MaterialGirl
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posted on July 14, 2001 10:36:33 AM
A seller's goal is to get the highest possible bid for his/her merchandise.
A buyer's goal is to purchase the item for the lowest possible price.
In the case of a high end item, I think reserves can be valuable. With the drop in bidding activity during the summer, and the abundance of items in any category, I, personally, don't feel like taking a gamble with my really good merchandise.
I think in some cases, reserves can encourage bidders to bid a little higher becasue they know they just have not won yet. Whereas in a non-reserve auction, they would be okay with their original bid. Unless another bidder came along. But with watch, and all these sniping programs, there are so many things working against a seller.
If you truly have value and you have a reasonable reserve, then go for it. Sure there are people who will not bid on a reserve auction, but there are bidders who won't bid on auctions for so many reasons that you can't let them deter you.
But the reserve has to be reasonable, it has to be attainable so that towards the end of your auction, any last minute bidders are just bidding against each other (meaning the reserve has been met). That way, if there will be a bidding frenzy, you can still benefit.
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bkmunroe
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posted on July 14, 2001 11:40:19 AM
gravid: There is no guarantee that the reserve is anywhere near what I would consider reasonable for the item and I don't have tiime to play games trying to see if my bid will meet reserve and then wonder if another $5 buck would have done it.
I'm curious as to what type of games you feel you have to play with reserve auctions. In reserve auctions, I place my bid and maybe I beat the reserve and maybe I don't. In non-reserve auctions I bid and maybe I beat the high bidder's proxy and maybe I don't. What's the difference? How is placing a bid in an reserve auction any more time consuming than placing a bid in a non-reserve auction?
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