AW Daily - Tips & Tactics - After the Auction: Winning Offline Auctions

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After the Auction: Winning Offline Auctions continued ...

Settling on a Price
The worst thing to do in these unsolicited situations is to offer the seller a ridiculously low--and possibly offensive--price. In fact, don't even talk price until you know the seller is interested in selling offline. If the seller welcomes your approach, then you can talk turkey.

For Dutch auctions, offer the same price everyone else is paying--you really shouldn't pay more, nor should you expect to pay less. For an auction that received no bids (and didn't have a reserve price), offer the opening bid amount. The seller might or might not take you up on this offer, depending again upon any original hopes and expectations the seller may have had.

Reserve auctions are a bit trickier. Clearly the seller had a price in mind, though bidders declined to award such a bounty. You might engage a reserve auction seller like this:

"Hi. I noticed your reserve price wasn't met. Would you still be interested in selling the item? Perhaps we can work out a deal. Thanks!"

Though you've offered no money, you've lightly telegraphed that you're willing to negotiate a price that is most likely less than what the seller originally had in mind. Be prepared for some sellers to respond with, "Here's my price--pay it or leave it." That attitude might indicate why the seller's reserve wasn't met.

But if the seller mentions dropping the price or asks what you'd be willing to offer, then you have a good chance of reaching a mutually agreeable deal. Refer to the market value of the item, past auction examples, and condition and completeness of the item. Keep the conversation friendly and factual and you both might end up in a win-win deal. If you can't strike a deal, agree to disagree. The seller may relist the item (often with lowered expectations) and you might have the opportunity to get an even better deal than what you offered before.

Breaking the Rules?
But is going outside an auction site's bidding process a crime? Not at all, but don't expect the auction sites to help you in your offline endeavors. It's true that sales done outside of the auction process will not gain a site its commission, and many sites will state that it is against site rules to attempt such deals. Furthermore, buyers don't have any recourse should a deal turn sour. However, since the Internet is an open communication forum where people meet and chat, it's perfectly acceptable for a buyer and seller to step aside from the auction site and arrange a deal.

Dennis Prince is the author of Online Auctions at eBay: Bid With Confidence, Sell With Success. He has been an active buyer and seller at various online auction sites since 1995. Send him email at dlprince@bigfoot.com.

Backing Out of a Bid
Analyzing Bid Histories
Bidding Strategies