Reserve on EBAY question

[JamesWilson]

If the reserve is the price you really want for the item, I agree with Mickey about the buy it now price...

A minimum bid is rather different for the buy-it-now option. The BIN ends any chance of getting more. The reserve sets a floor on what's acceptable.


<div class="ubbcode-block"><div class="ubbcode-header">Quote:]...however, if its just the lowest you want, then why not set the beginning bid there...[/QUOTE]

I've seen auctions where the first bid is absurdly low and think its nonsensical. I've also seen them placed absurdly high.

The point of the starting bid is to attract some fair attention and interest when the reserve price may not. If I bid on an item and see that my valuation doesn't reach the reserve, fine, I'll walk. And I can do all that without any to-ing and fro-ing with the seller trying to get them to tell me whatever they think its worth. I've seen bidders that throw in bid after bid looking to beat another buyer, or break the reserve. Seems a silly process to me when you can do that with a single, sensible bid from the start.


<div class="ubbcode-block"><div class="ubbcode-header">Quote:]By telling me the reserve when I ask, you automatically know you'll get that if I think its the right price because that'll be my 1st bid...[/QUOTE]

On the other hand I wouldn't know, unless you tell me you'll bid, and it seems you don't provide that to the seller in exchnage for their information.

Why should I tell someone my reserve and thereby let them sit out until the last minute, and then throw in a just enough to make the reserve bid? Alternatively, I can take my chances as anyone might in such an auction and tell you to bid what you think its worth. As you say, if you think its worth more than the reserve you might bid that much, or a little more.

If you don't, you don't bid.

AND its the effect of having few bids that I, as a seller would not want to see.

In effect by telling anyone my reserve I'm giving them information that allows them to walk away and not put a bid in, indicating a lack of interest in whatever I'm trying to sell.

Suppose I refuse to tell you the reserve. You put in a lower than reserve bid. That then becomes the new floor for later bids, and signals more interest in the item.

As a seller I'd reckon I get more from that (more bids and an increasing valuation/price signal) than I would from someone that just walks away.

More bids would seem inherently more likely to increase the price that is finally reached. AN auction is a competition, as a seller I want to see MORE buyers competing, and people that don't bother bidding because they know the reserve would not be in my interest.

 

[lawguy]

I think of it this way. Let's leave ebay out of it for a moment.

Let's say I am selling my old car. I want $1500 for it, and it is a reasonable price, but I would take $1000.

So, I put the sign on it at $1800 (you need to leave bargaining room) and a guy drives up and says he's interested, but he doesn't want to pay $1800. I say- OK, the lowest I'll take is $1000. Will he pay $1500? No. he probably won't offer the $1000 unless he's really in love. Would anyone do that?

What you would do is say: "OK, what do you think its worth?" the guy may say $1000, but he may say $1200, but by revealing your reserve, you will guarantee you will never get more than your bare minimum.

An auction is the same thing. "What about the bidding?" you say. First, you cannot count on more than one person bidding in a reasonable range. If only one person bids and you told him your reserve (not too unusual), you guarantee a sale at your minimum and not a dollar higher.

If several people bid, all the better- but then if the bidding drives the price over your minimum, what good did revealing your reserve do?

A buyer may want the reserve revealed, but I cannot see a reason why a seller would see it beneficial. Revealing your reserve is bidding against yourself.

 

[tony barnhill]

I've been known to bid higher than a reserve if I want the item & its already over the reserve but near my max price.....& if a person follows my bidding history, they'll see I bid on lots of things (& buy quite a few)...I don't wait until the last minute, I don't snipe - when I see something I want, I put an opening bid in to let the person know I'm interested...then I immediately email & ask the reserve...if he tells me & its clearly within what I want to pay, my next bid is his reserve..if he won't tell me, I never bid again.....if it reaches the reserve & is still below what I want to pay, my next bid is the maximum I want to pay....then I just sit & watch.

Right now I'm bidding on 5 items in exactly that manner - I know the reserves on all of them & have placed a bid at the reserve price...none, unfortunately, has reached the reserve yet but there's still several days to go on all of the auctions....

...1 of them is almost at the reserve but the other bidders are wasting time & effort upping their bids by $50 or so dollars to try & find where my max bid is....that, IMHO, is a dumb way to bid! When it reaches the reserve, I've got another $500 I'll go & then I'm finished...he doesn't have any interest above the 6 or 7 people who are inching the price up in small increments to try & find my top bid.

Oh, & I really don't like the new way ebay does bidders (Bidder #1, Bidder #2, etc) because I don't know if I'm bidding against a friend.

Case in point, I was bidding on an MG - friend called & asked me about the car & expressed interest...I told him what I had bid & the max I was willing to pay above the reserve & told him I'd drop out if he wanted to bid on it....& I have dropped out but had he not called me back to say he was the high bidder I'd never know it.

 

[14dna]

The reason they have gone to hidden identities is a result of too many fake second chance offers that people lost their money in. Ebay has become a haven for cons and only the experienced should participate. An example is item #200072289393 a 56 chev el camino conversion. This has come up 3 times in 4 days all with a different location for its home every time. Please be careful out htere folks. Dave