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What do you all think about auctions with reserve prices on eBay? I'm personally not a fan, I'd rather the seller just start the bidding at the minimum price they'd like to let it go. I know there are some perceived advantages but I normally just assume the seller thinks their item is worth more than it really is.
I'm saying this from a buyer perspective, not sure if I'd ever use a reserve on one of my razors. I think Buy it Now or Best Offer is a better option but to each his own.
Adam
I wouldn't use the Reserve Price option as a seller and as a buyer I wouldn't bid on such an auction.
Regarding Best Offer...as a buyer I'd always offer less than the listed price but as a seller I'd never offer that option. It just makes it look like you know you have the item overpriced.
reserve prices are a pain in the ... never mind, we're supposed to keep this clean.
The reserve is a huge waste of time IMO, people bid on a razor and usually the reserve is above or at full retail which isnt whar ebay is about. I mean granted people do want the most money, but ebay is about deals also. Say what you want for the buy it now if not start it as a certain price. a mystery reserve wastes a lot of time
From years of selling I can tell you that a seller who starts his auction at a low bid with a reserve will get more bids than a seller who asks his reserve price as an opening bid or as a buy it now. The bidder can bid a buck or ten bucks without fear of commitment if there is a reserve.
The idea is to get 'action' on the item. If an item is in a persons watch list through bidding or just watching there is hope for the seller. Out of sight ..... out of mind. The seller pays a much higher listing fee if there is a reserve. So from his point of view the item better be worth the price and one that will attract bidders. I personally shy away from reserves. I either do fixed price BIN or start at the least I will take in a regular auction.
I have bought a couple at Buy it Now and thought I was lucky I saw them 1/2 hour after they were posted because I never would have got them that cheap had they been posted a few days. I tried to bid on something to get it 20 bucks cheaper and watched the bids go way over the Buy it Now price. To me the Reserve is somebody saying I want more than it's worth and I am not saying what that is. Not always but like you say just start it out at that price and get on with it.
I stay away from reserves as a buyer.
And i don't hit buy it now buttons personally i like
the feeling of the trill of getting a good deal.
I normally would see an item, place my bid, and let it run. I then found that someone would bid about 6 times in small increments just to become to top bidder and then it starts a war and others get involved. I hate when items I'm buying get sniped but I've started sniping recently as well and think it's a better option. I spend less and it doesn't inflate the price too much.
I love Buy it Now prices, some sellers are willing to negotiate if you think it's a little high and sometimes you can get a really good deal if you catch the listing early on or if it's a higher priced item that a lot of people aren't willing to pull the trigger.
Reserve price is a good insurance that a solid item that is worth some money will not sell for cheap.
I do not see any problem with reserves, if I decided to bid $100 on something it does not matter if I did not pass the reserve or some one else bid $110.
As a buyer I dont care how its
price or method of sale. only if I want it, how bad I want it and how much I'm willing to pay. In the end it's all the same product and money.
I'm with Stefan on this one.
If I KNOW my item is worth 300, And I refust to let it sell for less than 250, then I would set my reserve for that (250) price. That way if it should be a slow week, or I forgot the entire country is away on vacation, I wont get burned by lack of interst when it only reaches 100 bucks.
And it IS true, when an auction starts out at a cheap start, it DOES get more bid action, and often will jump past where It might have been. I have seen pletny of auction where the start bid was too close to what I thought was the actual value, which ended with only one bid.
then why not just have a buy it now option? or start it at your low price?Quote:
Originally Posted by mainaman
Reserve prices setting has been around since auctioning began. As a buyer I don't like reserve prices because it means I will have to pay a higher price. But as a seller I would never sell anything with out one. eBay is no longer a site for just good deals, but is a place that works as a worldwide auction house. Just my two cents. But I would never put anything up for auction worth $200 and let someone win it for $49.68.
Based on everyone's response, I'm getting an understanding of this but I'm still not a fan. Say I'm not sure what something is worth but I know I won't accept less than $XX for it. I'd put a reserve price and then I'm not obligated to sell if it actually only ends up at < $XX.Quote:
Originally Posted by suits123
In the case that you know it's worth $200 as in your example, why not just ask $200 for it and not waste time on an auction? Or ask 300 and see if you get an offer?
At heart an auction is always a gamble through out history. For the buyer and the seller. Knowing that my item is $200 I would most certainly do a buy it now (aka set up a store front, as many people on ebay do). But a reserve is best say for this example: If I bought a vintage antique in excellent condition for $1000, I appraise it retail at $2000. Rather than waiting around to get the full $2000 which usually, especially the case of vintage items and straight razors is, I need to find the 1 person who would pay for it. The chances of that happening aren't the highest. So instead of having $1000 wrapped up in an item that is just sitting around I can elect to gamble on it and put it up in an auction. I paid $1000 for it so I need to get my money back at least so I would put in a reserve for $1000. $1000 is what I will take minimum, but I am hoping for more.Quote:
Originally Posted by ats200
Now most people look at this like, well it is a gamble, I should get it for the max bid I won. But what they don't realize is to even put a reserve on an item the seller must pay the auction house in advance for it. Usually at a steep price. Essentially it is an 'insurance policy' taken out with the auction house to assure that I will not lose money on my item, although I may not make any money.
I understand it is a weird system and it does seem obsolete, and I agree that with most items people are throwing their money away to ebay, but it is still that 'insurance policy'. And just like insurance: you pay the company saying 'I want coverage if something happens unexpectedly' and the insurance is saying 'we will cover it' but hoping that nothing happens as in the end they make money if you don't take out an insurance claim.
As far as my earlier example it comes down to how fast you want to sell. I for example have a few items up for sale at the price I want them for 'buy it now'. I don't intend to lower them or put up a best offer proposal. honestly if it never sells I will be ok with it, but I would like the money. An auction has a max of 10 days. And they 'thrill' of I have 2 minutes to win or lose it is honestly something we should probably get better at (especially with the economy going how it is). Long story short I depends on how much time you want to wait, how flexible you are on the price, and how open you are to haggling.
Sorry for writing a book! lol
Rather than a hidden reserve price most people would just list a minimum price (which is the way I would do it as a seller).
I don't use reserve prices on ebay. I don't even start my auctions close to what I think the item is worth. Everything I put on ebay starts at $9.99 and then the market decides what it's worth. Sometimes I've gotten less for an item than I thought it was worth but that's perhaps because my perception is wrong.
Reserve pricing, from the sellers standpoint works great if you have a bidding war because then the price keeps going up towards that unknown price.
If you use a standard auction and price the item too high at startup you won't get too many bidders because they will be scared away by the initial start price. With a reserve you can start the auction at a buck to attract attention and get many bidders. It's true some don't like reserves and won't bid on them but you will get more bidders with a reserve then with a high start without the reserve.
I haven't sold anything in years now but when I did that is what I found.
Reserve prices tell me that the guy doesn't want to sell it unless he gets an artificially high price. Most of the time as far as I'm concerned he can keep it.Quote:
Originally Posted by ats200
If someone has a Best Offer option and I see that he has had several offers, I might send the guy a note and ask him what is his best offer. Sometimes the guy wants to get the transaction over with and he'll give you a good price.
Buy It Now is fine if it's a fair price.
I argeed must the things i buy off ebay i have no idea what's items overall value.Quote:
Originally Posted by johnmrson
Turns out some folks buy the saws i buy to saw logs to just put on the wall.
The reserve price is a very good thing if the buyers are rational. If they are, they would bid whatever they have decided the item is worth to them and they can never lose.
But unfortunately buyers are not rational - they are on ebay to get a 'great deal' not pay fair value. Fair value appears to be considered gross overpayment. They also have no idea what they value the item at and go for the herd effect - more bidding must be something valuable.
I have sold razors with and without reserve, as well as Buy-it-now. I like to put a reserve and start at 1cent for one reason - if the razor doesn't get bid up above the reserve I still get a reference point of how the market values my razor, instead of just completely wasting my time to create the listing in the first place. Also if the highest bid is close enough to my reserve I may decide to take that as a 'second chance offer' instead of wasting more time relisting the razor in a better market environment.
Frankly, though if I have a reserve on a razor I am not concerned at all about the lawballers who want to pay 1/10 to 1/2 of what the razor is worth. As far as I am concerned if they place such a low value on their time they should spend the tens or even hundreds of hours hunting for that razor at their desired price point.
I personally think it's a stupid way to buy high quality razors because even with a minimum wage job one can earn the money in less time than constantly browsing ebay, but that's why we're all different and like to do things differently.
For me the cheapest way to get a razor I want is to find it from a very reputable seller in an excellent condition, pay the very little premium, and have 99.9% guarantee of getting exactly what I want without wasting my time hunting for it.