posted on July 1, 2003 02:40:28 PM new
Just had a buyer email me, "what is your reserve?" How to respond to that? Could it be another seller trying to find out value or for competitive reasons? Or maybe its just someone who wants the item and doesnt want to go through the bidding process?? I dont know what to think. I am hestitant in answering though. Item has been on almost 5 days with 1 hit. What do you guys think? Thanks
I've asked for the reserve before.. wanted to know where I should put my proxy in order to meet reserve, especially if not around for the 'snipe'. Most sellers comply.
posted on July 1, 2003 04:02:27 PM new
I've done the same thing - ask about the reserve price. One was for an item that had a current price of about $14.00 and if it would have gone for around $40.00 - that would have been okay and I would have put my bid in for that amount... but when I found out that the reserve was out of line and they set it at $99.00 - I knew right away that I didn't need to get my hopes up.
Placing it in your listing does make a lot of sense. It's not supposed to be a guessing game - it's to keep the sale from completing if the minimum isn't reached. However, I'd be interested to do the math on what the reserve fee is for the item compared to just listing the item for that minimum bid... hmmmmm
Wayne
Trying to Make a Difference - One Satisfied Customer at a Time....
posted on July 1, 2003 04:56:21 PM new
::However, I'd be interested to do the math on what the reserve fee is for the item compared to just listing the item for that minimum bid... hmmmmm ::
Wayne - if the item meets reserve, that $2 feserve fee is refunded.
Mario Andretti - “If everything seems under control, you're just not going fast enough.”
posted on July 1, 2003 07:40:55 PM new
Hi. Thanks all for your imput. I guess I should have put it in the auction or just started the auction at that price. Seems to me, though (and I could be wrong because I an fairly new to the game with only about 4 months under my belt) but..anyway, it seems like items get more bids when the bidding is price is started very low, even though eventually it goes very high. But then you run the risk of selling the item for much less than you really wanted to if it doesnt get alot of fighting bidders. Since Ive been experimenting with this theory, I gotten burned a couple of times..lol...so I just threw in a reserve on this one...No particular reason why. I dont mind telling the bidder what the reserve is. As a buyer, you are right...sometimes you just want to know if its in your ballpark and I have been there as a buyer myself. I guess I will email her back and tell her what reserve is.
Maybe I will ask her what she is willing to pay for it? And then offer to change it to a BIN? ya think? I do want to SELL, I agree that is my end of it and I invested in a stock full of stuff I gotta get out of here.
But I was reading the posts about sellers...underselling....so I have some mixed feelings about it. Cheers!! Tessa
posted on July 1, 2003 07:52:46 PM new
Why would you not want the reserve known? Just like a previous poster said, when I put a reserve on something, I put the amount right in the auction description.
The point is a "safety minimum" not a "secret prize" for the high bidder.
I rarely bid on an auction with a hidden reserve. I'm not going to bid unless I have at least some hope of winning. It's silly, but I'm not alone in this.
posted on July 1, 2003 08:00:48 PM new
If I see an auction with a reserve that I want to buy, I email the seller to ask what it is. If they won't tell or if it is too high, I find a different one to bid on. I am not going to lose the chance to buy a lower price item and waste all the time just to find the reserve is too high.
posted on July 1, 2003 08:04:47 PM new
RealPlay: But you know what else the reserve does too?? It lets you know what people will bid up to and where to go if you need pricewise to relist. Dont you think?
posted on July 1, 2003 08:17:22 PM new
Neon - Doh! Didn't have my wits about me when I suggested the "math" part earlier. I guess I was trying to think about the comparison of setting a low start with a reserve vs. a higher start with no reserve....
As I ran the numbers below, I wonder what your thoughts are on when to use a "Reserve" - when does it make any sense at all?
Scenario #1:
Starting bid: $1.99
Reserve $19.99
Insertion Fee: 55 cents (based on the $19.99 reserve)
Reserve Fee: 50 cents (refunded because it sold for the reserve)
FVF: $1.05 (item sold for $19.99)
The total to sell item: $1.60
Scenario #2:
Starting bid: $19.99
No Reserve
Insertion Fee: 55 cents
FVF: $1.05 (item sells for $19.99)
The total to sell item: $1.60
Scenario #3:
Starting bid: $1.99
Reserve $19.99
Insertion Fee: 55 cents (based on the $19.99 reserve)
Reserve Fee: 50 cents
Do these numbers make sense? What advantage is there to using reserve at all? Do you think anyone gets that much benefit out of a lower priced starting point?
Welcoming your thoughts.
Wayne
Trying to Make a Difference - One Satisfied Customer at a Time....
posted on July 1, 2003 08:29:53 PM new
Wayne YES YES ABSOLUTELY YES! it's not about reducing fees, it's about selling your items and doing at a price that is as good for you as it is for the buyer.
I have some serigraphs that I have been selling off. If I started them at $200 the likelyhood of getting a bid is very low. If I start them out at $10 with a $200 reserve I get more bids, I get more people interested in them and I stand a much better chance of making the sale. If I start out at 9.99 with no reserve then as I watched another seller do last week, I stand a good chance of losing my shirt.
Want proof - A couple weeks ago I listed a piece that closed over $150 but under my reserve. Last week another seller listed the same piece as a BIN for about $50 under what bidding on mine maxed out at. Their closed without selling.
Great sales are 50% great product, 25% great price, 25% great psychology. Reserves, if used correctly are an invaluable part of the game.
Mario Andretti - “If everything seems under control, you're just not going fast enough.”
posted on July 1, 2003 09:29:01 PM new
The problem with the low starting price with a reserve is as a seller, you will have tons of deadbeats bidding just to see how high the reserve is set. It becomes a game for them. You are much better off dumping reserves and use real prices you are willing to accept.
posted on July 1, 2003 09:31:28 PM new
When someone asks me my reserve price in the rare auction that I use a reserve anymore, my response is......"Thank you for your interest. I am happy to answer questions regarding the item, but as for the reserve, I would advise you to join in the fun of bidding. Bid whatever you feel the item is worth. If you hit my reserve, great, if not, you have nothing to lose. If you do wind up as high bidder with the reserve not being hit, please feel free to e-mail at that point and perhaps we can negotiate a price."
Regards
..
.We've been over this issue many times, and so far, in 5 years........no one has been able to give me a logical reason why a reserve needs to be known. The bottom line as a seller is to get the bidding going. If I have a reserve at $100, and someone out there has a firm limit of $90....isn't it better for me to get that person to bid $90 in the hope that someone else will come along and bid over them and meet my reserve. If I tell the person my reserve, they don't bid. If I don't tell, maybe they bid. There are many out there who over the years have said I'm just playing games, and just reveal the reserve. To those and anyone else, I ask, give me the logical reason why I am wrong? How does it hurt the bidder who bids $90 in the above situation.
posted on July 1, 2003 09:44:18 PM new
Stone - that is an interesting concept but it has proven to be the exact opposite of my actual experiences. I use reserves, I get the price that I want to get and I have yet to have a deadbeat on one of the higher ticket items. In fact - to totally toss your theory out the window - those buyers are generally the ones that pay the fastest. I don't think I have had to wait more than 15 hours to get payment from bidders that win items that price at $100 or over this year. In most cases, they paypal my within an hour of auction close.
Mario Andretti - “If everything seems under control, you're just not going fast enough.”
posted on July 1, 2003 10:01:10 PM new
Pointy - I understand your point but in the case of the serigraph I mentioned above the winning bidder emailed asking the reserve and I told her. After the end of the auction she wrote telling me that she had not intended to pay as much as I was asking for the piece and would not have placed that bid had I not let her know what the resere was. She relented and paid more than she had intended but because she wanted it as a gift for someone that it held personal importance to she was willing to go the extra step. For me, that validates giving the reserve. On items that I recieve emails asking for the amount of reserve I get it about 80% of the time. On items where no one inquires, I get less than a 50% sell thru rate.
Mario Andretti - “If everything seems under control, you're just not going fast enough.”
posted on July 1, 2003 11:54:25 PM newPointy: this is one area I disagree!
My goal is to SELL the item, not provide lottery-type entertainment!
I have only used RESERVES about 4 times -- all for valuable items that I felt I should start the bidding LOW, just to get the LOOKS in the door! That's half the battle!
Then, because I SPELL OUT the reserve price right in the auction, the bids I do get are MEANINGFUL ones!
Ralphie loves Mr Blonde:
"Are you gonna bark all day little doggie, or are you gonna bite?" http://tinyurl.com/5duz
posted on July 2, 2003 06:34:26 AM new
Sure it is!
I considered RESERVE about 50 times, but only actually decided it was 100% necessary about 4 times -- I believe it should be used as sparingly as possible, because I'm convinved that it is a big TURN-OFF for bidders!
Ralphie loves Mr Blonde:
"Are you gonna bark all day little doggie, or are you gonna bite?" http://tinyurl.com/5duz
posted on July 2, 2003 09:42:07 PM newStone - that is an interesting concept but it has proven to be the exact opposite of my actual experiences. I use reserves, I get the price that I want to get and I have yet to have a deadbeat on one of the higher ticket items.
Congrats neon, You stand in a crowd by yourself. This is the one item that tomwiii has gotten correct. reserve = deadbeats and lots of bid retractions if they happen to hit your reserve price.
