Ebay reserve price

[blacksun1520]

...This is my question. So I need opinions. I am selling an item for my sister-in-law and so far 3 people have asked me what the reserve price is. I am thinking that I shouldn't tell them, because if I wanted them to know, wouldn't I have just stated it in the auction? I've sold things before with a reserve, but this is the first time anyone has asked me what it is. What do you all think?

BS

[bsrj22]

I don't sell stuff on Ebay, but I would say give it to them. Personally, I just don't waste my time if there's a reserve price. It just means I have to keep bidding again and again until I can get it.

[karamazov80]

Like you say, if you wanted the buyers to know, you would list it. I wouldn't tell them.

[TM2 Dinobot]

I agree with KA. I always list it in my auctions, but then again, I don't care. You do care, so don't say.

See? Prime example. http://cgi.ebay.com/ws/eBayISAPI.dll?ViewI...e=STRK:MEWAX:IT Just list the dang reserve price people. :/

Edited October 1, 2010 by TM2 Dinobot

[battlecat]

At the risk of pointing out my own idiocy, I have no idea why reserve prices exist. What is the benefit to having a fake low starting bid and a higher real starting bid?

[TM2 Dinobot]

Don't know. Just start the auction at the minimum amount you'd be willing to take for it. :/

[karamazov80]

I think there are at least two possible reasons. The first is that you might get more interest from bidding "momentum" if you start a desirable item at, say, 99 cents, than if you start it closer to what you think its actual value is. You get people bidding, and they start investing some energy in the auction, imagining themselves winning, which makes them want to bid more, etc., and ultimately, you might get more than if you listed it some other way.

Another reason, and a reason I have considered using reserves (though I never have yet) is that you can use them if you just want to gauge interest in an item, without actually having to sell it. If you just want to know what people will bid, then start an auction at 10 cents, put the reserve at $1,000,000, and see where it ends. You have the option, as seller, of offering the auction to the person who bid highest after it was over if you so choose. Or, you can just rest well knowing that item X is worth Y amount of dollars. Of course, lots of people are like the gorilla and won't even bother bidding on auctions with reserves. So, I'm not sure how accurate the estimate here will be.

I will say that I won my Hot Toys Hicks on an auction with a reserve. The reserve was never met, but I was the highest bidder and the seller offered it to me for what I bid. Honestly, I paid less than it probably would have went for in an auction without a reserve, so I think that I benefited.

Edited October 1, 2010 by karamazov80

[battlecat]

Interesting... I can see how a reserve might build bidding momentum in a fast-paced real life auction, just not as convinced that translates to week-long online auctions -- kind of like how I never feel any pressure to impulse buy while browsing online stores, since I can always think it through and come back in a bit. Never thought about the price-check thing.

I've only bid on one auction with a reserve. I "won" but it wasn't met, and I was annoyed and confused, and have since avoided them.

[buttheadsmate]

Don't disclose the reserve but invite offers from all three potential buyers (preferably not ebay message) to Buy It Now from you.

[youbastards]

I rarely sell on eBay anymore, but when I did, I never used reserves. With the eBay and Paypal fees as high as they are already, I couldn't justify spending more just to possibly have my auction end without a winner. That said, if you do use a reserve, don't tell people what it is. If they really want what you're selling, they'll bid appropriately. Like BHM said, counter their request with "make me an offer" and see what happens from there. There's no point in setting a reserve then stating in the auction what it is. You might as well just set the starting price at that dollar amount and let it go from there.

Edited October 1, 2010 by youbastards

[blacksun1520]

Thanks for the advice everyone Yeah, I don't think I'll tell them what it is, which was my initial decision anyway. Just wanted some other perspectives on it.

The reason I put a reserve on the auction is mostly because my sister-in-law wanted me to. She needs the money to put an offer in on a house, so if the auction ends at say $20.00, then it's not worth it to her to sell the item, so she would rather just keep it. I know that reserves can turn some bidders away, but in this case it's being done for a good reason. I feel as though it would turn more people away if the opening bid were too high, so this is kind of the lesser of 2 evils. Besides, when it comes down to the last minute of the auction, people who are interested tend to continue bidding just so they "win" and beat the other bidders, sometimes spending a little more than they originally wanted to.

Anyway, thanks again for all your input.

BS

[Shanester]

I never have a problem telling my reserve and don't really understand when someone won't say. The bottom line as a buyer is this, the amount of the reserve is acceptable or it is not. No rocket science, no stealth tactics.