Reserve Price

Hello gents,
I set a low start price with a reserve. Whether that reserve is high or low is debatable. Some people think reserves are silly. But so are many eBay buyers. Take bidding wars. Hey, I've done it, but getting in a bidding war over an item usually means that your set price is disregarded and you now simply "NEED" that item or are going to "WIN"! This is silly. Can be fun, but is silly.
So now take reserves. I've seen one razor sell for high, next week the exact same razor, dirt cheap. But if you just "set" the price, the silly factor comes into play again.. in a bidding frenzy, many buyers will pay easily twice what would have turned them away in a starting price!
If you take that info and turn it around in your head, you might lose respect for what seem to be mindless sharks getting the whiff of a cheap buy and then getting lost in the moment. But do you want to pander to such silly urges? Well some say if you want to make money.. okay but what about losing out like when for what ever reason the price didn't go up. It happens. Gotta take a chance?

This brings me around to my questions. I keep getting people asking what my reserve is. I haven't answered yet because I'm at a loss. WHO CARES! I've never asked a seller that question. Do these buyers not want to "risk" spending the time on bidding? Risk getting their hopes crushed by my reserve? That is a silly question. Do you guys ask/receive that question?

Just imagine that the reserve is another bidder. And he is going to bid a certain amount. You don't know that amount. So now that element of competition and suspense is back. Problem solved! It's all silly, let's not try to make algebraic equations with our macaroni.

All this is my most humble opinion. :) please don't take too much offense.

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Originally Posted by MikeT

Hello gents,
I set a low start price with a reserve. ...snip...
Just imagine that the reserve is another bidder. And he is going to bid a certain amount. You don't know that amount. So now that element of competition and suspense is back. Problem solved! It's all silly, let's not try to make algebraic equations with our macaroni.
All this is my most humble opinion. :) please don't take too much offense.

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That is the first time I have come across a good, useful, working definition of a "Reserve" on the 'bay.
Thank you!!
~Richard

Dunno, always thought a "reserve price" was the hidden price below which the item would not be sold for. If you want the item bid till the reserve has been met and go from there. If the reserve price has been exceeded and you don't want to pay more don't bid anymore.

Bob

I think a set reserve price is good. I liked how you worded it, Mike. All buyers are looking for "that deal".....some get it and some don't. An item is worth what a person is willing to pay for it. Some sellers do set the reserve price a tad bit too high at times. Not all but some. Live and learn......lol

I think a reserve may garner interest, just not bids. Same as starting an auction at a fair point except the reserve is now out there. They may bid, but only a few who expect to pay a fair price. 99 cent no reserve auctions are bumped-up a buck at a time by cheapskates until it hits the end, whereupon a few may get into a bidding war. Lately, I look at those with make offer and make a fair one.
Usually no 'smoking' deals that way, but easier to get quality for a fair price.
JMHO

I understand your point and you did explain it well. But personally I see a reserve price and move on there will be other things to peek my interest. A reserve on eBay to me means the person isn't ready to sell at a reasonable price.

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Originally Posted by sharptonn

I think a reserve may garner interest, just not bids. Same as starting an auction at a fair point except the reserve is now out there. They may bid, but only a few who expect to pay a fair price. 99 cent no reserve auctions are bumped-up a buck at a time by cheapskates until it hits the end, whereupon a few may get into a bidding war. Lately, I look at those with make offer and make a fair one.
Usually no 'smoking' deals that way, but easier to get quality for a fair price.
JMHO

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That is also what I do when buying. I like to see buy it now or offers, I'll make fair offers and see if it hits. I never PM sellers making offers on auctions.. so so many times I ignore buyers or write back "this is an auction, no I'll not remove the listing and sell you an item for 10% its value." The nerve! LOL oh well.
In truth, I could have listed it for a price that i felt was fair, but I was hoping to cash in on a possible feeding frenzy while staying protected in my shark cage called a reserve.
Shameless. I know. But I've been bitten too many times.

Castel33 thank you. I understand what you are saying. It is a valid point and perception of the buyer is relevant regardless of other factors. The shame is that the middle ground is hard to find. Many out of touch sellers indeed have ridiculous reserves. Some of us sellers are simply looking for protection just in case the buyers willing to pay a fair price are away from their computers.. can't blame a buyer looking for a screaming deal, can't blame a seller seeking profit.. but there is a point where greed gets to be annoying on both sides.

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Originally Posted by Castel33

I understand your point and you did explain it well. But personally I see a reserve price and move on there will be other things to peek my interest. A reserve on eBay to me means the person isn't ready to sell at a reasonable price.

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The corollary to that is the seller will not sell it for peanuts either. The reserve might just be fair price for the quality offered too.

I usually look at BIN listing for what I want in the price range and quality I want at the time. Sorta cut to the chase and quit kicking tires.

Bob

My issue with the reserve price is that you need a second person to raise the bid high enough to get past the reserve. For example if the opening bid is $30 and the reserve is $50 and I really like the item and have to have to have it so I bid $100. The bid then sits at $30 until someone bids against me and raised that bid to the reserve or higher, then a sale can be completed. Far too many times I have bid on items with a reserve, and have been the high bidder without any competition and have been left with no sale. If there is a high opening bid I will wait until the last second to bid, just like every other auction and I may or may not get it. I guess the readers digest version is on a reserve auction you need someone else to come to the table, and with a high opening price you just need one bidder willing to pay.

It depends on which side of the "auction" you are on.

When I buy, I know what I am willing to bid. No more. When I see an item with a reserve, I just make my max bid same as usual. Yes, all too often the reserve is somewhere out in left field between top of Empire State building and International Space Station.
Its rare for me to actually USE a reserve, although I have considered it. Its not that I want top dollar for something, I just don't want to see it sell for LESS than a certain amount.
Sure, I see a DD Wonderedge got 400 bucks. I want to get 400 too. But I am willing to sell it for less, but NOT willing to let it go for less than 200. Because that might be what I paid for it. (just using made up example numbers here)
Of course, I also have razors that I just love too much to let go of cheap. If you want my favorites, you need to bribe me properly. Those I will simply put up with a predetermined BIN and if it doesn't sell, I don't care. If it does? well.... :angel:

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Originally Posted by sharptonn

99 cent no reserve auctions are bumped-up a buck at a time by cheapskates until it hits the end, whereupon a few may get into a bidding war.

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Hey now, don't take my fun away... I love bidding up like that then at the end drop in a real offer that is more than fair and what I am willing pay.

I do the dollar bid ups just to irritate other bidders until they go away or man up on a real bid so I can feel them out way before the end of the auction. I love to run them up a dollar at a time until they reached their max bid and go away...

So much fun in my lil world. LOL

In the end why bother with all the little strategies and just place your best bid in the last 15 seconds.

Bob

15 seconds Bob. I usually try to hit the last 4 seconds when I hit my bid button. Often it hits my max before I bid. I guess if I really want popular items I had better be prepared to pay. The trouble for me right now is I have so many projects on the board not getting done. It leaves me with little motivation to bid.

OK, as near to the end of the auction as possible or use a sniping program.:D

Bob

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Originally Posted by BobH

The corollary to that is the seller will not sell it for peanuts either. The reserve might just be fair price for the quality offered too.

I usually look at BIN listing for what I want in the price range and quality I want at the time. Sorta cut to the chase and quit kicking tires.

Bob

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This is true bob but I find when seller is looking for a fair offer they will do a somewhat high bin and take offers on it.

@miket if your looking to cash in that way I have no problem with that either. On your end that really makes sense. Honestly if you relist it enough times you probably will end up getting what you want. I have seen used items that you can still buy new sell for more then the buy it new price (same exact item with nothing to make it a collectors item) and the reserve was only a dollar under the buy it new price. Took the seller awhile to sell but they did.

I very rarely bid on items with a reserve price as far too many times the seller is wanting more than what bidders are willing to bid.
I do not waste my time watching and bidding on an auction that probably will not be sold to the highest bidder.
I am old school and believe that the auction should go to the highest bidder.
I hope I have not offended anyone but this is just the way I see it.

List an item on the bay with a reserve and the listing fee is high. List it with no reserve and it is free. If it meets reserve and sells there is no fee, but if it doesn't sell you pay the fee. So I do a lot of fixed price BIN auctions. Sometimes straight auctions, but the opening bid is the least I'd sell for. In effect that is a reserve.

In a sense starting an auction at $0.99 with a reserve will stimulate bids. No commitment if there is a reserve, and low starting bids always stimulate bidding. I've been a last 4 seconds sniper on the bay since my first few months, back in '99. I take my best shot with no time to get a second bid in if the first doesn't bring home the bacon. Saves me $ in the long run, and many times I've been glad to be outbid when all was said and done. Chances are I didn't need whatever it was anyway. :)

Reserves are pretty much hated by buyers and discourage bidding. On the other hand they protect the seller.

Say you are selling a livi which you think should go for a grand. So you do a reserve and the bidding starts and maybe the highest bid is $100 and of course you don't sell it. If you went without the reserve and you started the bid at $1.00 you might get 30 bidders and a lot of interest but the top bid may be $50, then what. Going by the rules you have to sell it to the top bidder and take a bath. Of course in reality most who do that close the auction for one reason or another and then all the buyers moan about it.

If the item is cheap reserves make no sense but if it's a pricey item it makes a lot of sense.

Oddly, I have put up a number of auctions at a higher than I expect to sell it for BIN, and a "Best Offer"

I have never received an offer that was not at least 40% less than the BIN and 3 out of 4 of the razors have actually been bought up at the full price. Go figure.

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Originally Posted by BobH

In the end why bother with all the little strategies and just place your best bid in the last 15 seconds.

Bob

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Simple answer, personal entertainment....

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Originally Posted by Suticat

Simple answer, personal entertainment....

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Yea, understood and clearly stated in your post. Meant strategies in general. Oth I don't view Oboy as entertainment either so that makes a difference. I know people who have been forced to pay more because of the bumping game and have gone out of their way to return the favour as often as they could manage.

Bob

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Originally Posted by thebigspendur

If the item is cheap reserves make no sense but if it's a pricey item it makes a lot of sense.

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Absolutely. That is why I make the lowest price I'll take the minimum bid, or list at a fixed price BIN.

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Originally Posted by Magpie

Oddly, I have put up a number of auctions at a higher than I expect to sell it for BIN, and a "Best Offer"

I have never received an offer that was not at least 40% less than the BIN and 3 out of 4 of the razors have actually been bought up at the full price. Go figure.

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I've seen a BIN (no reserve) auction along with the alternative of bidding, and wrestled with whether to go for it, or throw in a token bid and see where it ends up. When there is no reserve as soon as there is a bid the BIN disappears. More than once I've seen the item end up going higher than the original BIN.

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Originally Posted by BobH

Yea, understood and clearly stated in your post. Meant strategies in general. Oth I don't view Oboy as entertainment either so that makes a difference. I know people who have been forced to pay more because of the bumping game and have gone out of their way to return the favour as often as they could manage.

Bob

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I've known some sellers who definitely have their view of strategy. One successful tobacco pipe seller always times his auctions to end at 8PM central time, and on a Sunday. Feeling that more people are at the computer at that hour/day. He always lists with a reserve, and though not everything sells, it averages out to his benefit. At least he says it does. OTOH, I know some very successful sellers of pipes and of shaving gear, who always start at $0.99 with no reserve. Some of their auctions go unbelievably high, but they do sell first class vintage stuff, and have a following.

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Originally Posted by JimmyHAD

I've seen a BIN (no reserve) auction along with the alternative of bidding, and wrestled with whether to go for it, or throw in a token bid and see where it ends up. When there is no reserve as soon as there is a bid the BIN disappears. More than once I've seen the item end up going higher than the original BIN.

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Usually I follow your method, opening bid absolute minimum I will accept. But I have seen numerous auctions with BIN that the BIN does NOT disappear with the first bid. I have yet to figure out how that works. I would love to list like that.