Reserve Price Thoughts

[bensontwenty]

What are folks thoughts on a reserve price in an auction. I get frustrated with reserve price auctions and generally don't enter them.

My feelings are that a seller of anything should post a product or service either with no reserve, or with a starting price of what they will least accept for it. This way, people know exactly what the minimum they are going to have to outlay in a particular auction is and the seller knows that if they receive a bid for it, then they were spot on with their minimum valuation.

What does everyone else think.

 

[-SMH-]

totally agree with you. if your not going to sell unless it meets the reserve you should just start it at that. a reserve is just a big waste of time imho

 

[GCgirl4ever]

Ugh that's annoying. At least post that there IS a reserve... like eBay does.

 

[slipondajimmy]

hahah this is all a result of me ....i feel like the man of the hour ...In my case the auction did state there was a reserve it just was not noticed. If a reserve is not a good idea then whats the sense in auctioning the item . just make it a buy it now ..no auction at all . IF i want 1000 for a item ..then just put 1000 ?? that does not make any sense at all . Change the thread to NP$ sales and take out the auction .

Half the fun of a auction id watching people bid in hopes that they will win the item ...here is another suggestion to the people who dont like reserves.....Make it so the reserve price can not be more then 3 times the start price. at least you will know what is being asked of the auction . just a thought .

 

[bensontwenty]

lol donnies auction did state that there was a reserve folks it was my fault that I never noticed it.

The point of an auction is to get the most that you can for it. You have a minimum that you will sell it for but obviously you would like more. If you start the auction at the minimum you want and only one person starts it, then it is effectively a buy it now price - the person bidding just has to wait until the end of the auction to see if anybody might 'snipe' them - thats where the fun is in an auction. If more than one person bids on it, then right away the seller has a succesful auction as he/she is automatically going to get more than they would have happily accepted for it.

 

[-SMH-]

yep if you are auctioning a name and start it at 100 but you have a reserve of 500 you might as well just start it at 500 since you wont accept anything lower anyway. people can still bid higher if they want.

 

[slipondajimmy]

well I geuss im out of this ...i still dont agree. I dont care what auction it is cars, planes, names whatever. there is always a reserve option. and i think the reason is to peak peoples intrest in the item . bidding is part of the auction process. So thats it for me ...let everyone else add to the thread

 

[Darren]

I actually like Reserve prices. This is how I see it: (For example)

If you selling a valuable item worth $100, and you want $100, then making that it's starting price may sway some buyers, due to it's high price starting demand, where-as, if you start the bid at $30, then a buyer will let their guard down to bid on the item... Another buyer comes along, see's the 'cheap' price, bids, then another and another. It's draw attention, and the more the demand for the item, then the more somebody will pay for it... Evenually, you could get $120 for the item, where-as at a $100 starting price, you may have only got that much for it, or maybe it wouldn't even sell.

Hope you understand what I mean.

 

[-SMH-]

Originally posted by Darren
I actually like Reserve prices. This is how I see it: (For example)

If you selling a valuable item worth $100, and you want $100, then making that it's starting price may sway some buyers, due to it's high price starting demand, where-as, if you start the bid at $30, then a buyer will let their guard down to bid on the item... Another buyer comes along, see's the 'cheap' price, bids, then another and another. It's draw attention, and the more the demand for the item, then the more somebody will pay for it... Evenually, you could get $120 for the item, where-as at a $100 starting price, you may have only got that much for it, or maybe it wouldn't even sell.

Hope you understand what I mean.

valid point darren. however when i see a reserve price auction even if it is something i am interested in i usually dont bid and move on. so it can work both ways.

 

[phrone]

Yea I like to know, but they can screw you over too :p

 

[bensontwenty]

Originally posted by smh7233
valid point darren. however when i see a reserve price auction even if it is something i am interested in i usually dont bid and move on. so it can work both ways.

Yup , if I see a reserve on an auction I generally don't bid for it.

Take this example. You have an item you value at $100. The market value of the item is actually way less but you believe that it should reach this. By placing a reserve with a low starting price on it you generate interest on your item. Along come the buyers - they bid for the item - your auction generates publicity and more people come along and bid thinking - great deal. However, the auction soon reaches the price that is actually the true market value. Nobody else comes along and bids higher for it. What have you achieved - nothing other than wasting peoples time by getting them involved in an auction without disclosing the minimum wanted.

If you set the starting price at the minimum you wish to achieve and nobody bids then you know that you got it wrong so you can then rethink and either drop the starting price or choose to hold on to the product until you think that you can achieve this.

This happens so often on the likes of ebay that I make it a point not to enter an auction that states a reserve but has a low starting price. If I see something that I would be genuinely interested in and it has these criteria then I will bookmark it and revisit it from time to time to see if the reserve is achieved - then and only then if this is in a price range acceptable to me will I start bidding on the item. Sadly though, the majority of these items get a few bids and then nobody bothers because the seller has an inflated view of the price - the auction runs its course with a few bidders and then dies a death.

 

[bigboss]

I know when I sell on ebay I don't use the reserve too often

I start my prices at pocket change $1 $5 $10 $15 & $20

First and last days bidding is good

I usally make the reserve I have in mind

I'll put a reserve on domain names to make sure
I cover the cost of Reg Fees
Domains are hard to sell on ebay
They don't have an up front category to sell your domains

John

 

[Jamie_net]

I like a reserve or a BuyitNow because usually instead of having to wait for the auction to end, I will just buy it. Its faster :D