posted on November 26, 2000 05:09:33 PM
How do you determine your opening bid?
I have been starting all my auctions at what I have paid for the item, sometimes more. Sometimes a lot more if I bought it really cheaply. Generally this means that my opening bids are among the highest of my competitors.
IMHO, the biggest risk on eBay is not having to relist because you didn't sell the item (hey, relisting is cheap), it is getting only one bid. Once your have two serious bidders, you are likely to get a fair price.
Basically, I think that this works. However, in the last month, I have only sold about 40% of my items on the first try.
What is your opening bid strategy? Why? Does it work for you?
posted on November 26, 2000 05:31:17 PM
Most of my Items have starting price of what I want for it 90% of my Items end with one bid .
I relist once with the same start bid then I wont list for 30 days when I do relist the Item again I need to put the price up .25 to.50 to cover lost listing fees.
I cant sell Items starting at what I paid for them ever, I need to get what I paid back for the Item I need to cover my fees and over head I base that like this for every $10 I invest there is $2.50 in fees and over head there is .75 for other expenses like packageing and other costs of doing business.
I never pay $10 for any item I will sell on ebay or yahoo inless I am sure I can get $25 for it.
it breaks down like this
$10 cost of item
$6 for fees and exspenses this includes but not limited to listing fees credit card fees I from accepting paypal billpoint packageing ISP and other things.
$4 always pay your self #1 rule in a good business or any type of work you do for your self.
$5 stay in account to help grow business or for a rainy day like computer break down need to reat a PC in a hurry or a unexspected yard sale flea market.
This totals $25 for $10 spending that would be the starting bid if it sells higher the rainy day fund grows.
posted on November 26, 2000 05:33:36 PM
I handle pretty much computer parts and they are in pretty high demand. I start my auctions at $1.00 and watch them climb. It is more fun for the bidders that way and it creates more excitement for everyone. Once in a while I end up crying while a wrap something that is going out for quite a bit less than I paid for it but then sometimes I am laughing as something goes out for much more that I thought it should. It kind of evens out that way.
posted on November 26, 2000 05:48:55 PM
Hello Bill,
I think one's opening bid must depend on the type of item one is auctioning.
I sell my tin crafts on eBay and I set my opening bid slightly below what I would ask for the item should someone walk into my "store" and ask for it.
Since my tin crafts are not vintage or antique my operation on eBay is very close to a retail operation and I don't expect more than 1 or possibly 2 bids.
Should my craftsmanship and design work improve to the point where my crafts become "collectible" then I might consider lowering the opening bid in the expectation that I would receive more bids.
posted on November 26, 2000 05:52:04 PM
If it's a universally desirable item I usually price it at $9.99 or sometimes $1.00 with no reserve because I know that it will make it to the right price, and it saves me ebay fees. I have found that items with many bids look really desirable to bidders so it does help to start auctions low. (I've been really burned before though because this method only works when Ebay is up & running.)
If it's something that appeals to a smaller niche type market and I want to get say $12 or $15 for I'll price it at $12 or $15 because I've learned that pricing it at $9.99 usually means selling it at a loss- it will usually end right where it started at $9.99 if it sells at all.
posted on November 26, 2000 06:37:37 PM
With resale items (vintage), I pretty much cover my costs, then take a look at the opening bids of my competition, and try to undercut a bit. I do my quilts differently. After selling more than 60 over the past 2 years, I've got a good idea of how they'll sell, and set an opening bid I know from experience has attracted bids and generated a satisfactory high bid. It covers my costs and a small part of my labor.
I agree that to make selling an item on eBay you need a reasonable profit. I aim for $10 for an item which needs a uniqe photo and description. A little less on items that just need a click on the relist button.
Sometimes this is im my opening bid, othertimes it is my hope that the bidding will go high enogh to cover it.
Items which attract fewer bidders should have a higher starting bid, IMHO.
posted on November 26, 2000 08:48:23 PM
After months of boredom at just getting 1 bid or NO bid at all I was about to give it all up. I spent more time here instead of listing. Well, it wasn't any fun anymore.
After a couple of months here reading the boards I decided to change my strategy.
I list EVERYTHING at $1.00 NO RESERVE!
I have made more money in the last 3 months then the whole previous year.
You see with the $1.00 you set the hook, then another bidder comes alone and you set another hook, hey their thinking I'll give $2.00 for that widget, pretty soon you got 2, 3, maybe 4 people determined that their going to win this bid.
LET THE BIDDING WARS BEGIN!!!
I have had so much FUN since I started doing it this way...Man....WHAT A RUSH sometimes.
Thats my STRATEGY and I'm sticking with it!
Thanks for asking.
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edited for packer by packer!!
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Having a BAD HAIR DAY! ...
posted on November 26, 2000 11:05:46 PM
I was listing many items at close to what I paid for them, but things have been slow and my stuff isn't selling that great so I decided to try starting bidding at at 1.00.
I had an item that I started at my cost and the auction closed with ZERO bids. I relisted at 1.00 and when it closed it tripled what I paid for it.
I think I am going to try it for more items because it seems that the lower I start opening bids the higher the bidding goes.
posted on November 27, 2000 01:18:51 AM
We've been doing it like Dman3: 90% of successful auctions end with one single bid - often in the last few minutes of the auction. While it's true that listing is cheap, if you are selling something nearly at what you paid for it, it just isn't worth your time in the long run. So you have to figure out a minimum mark-up for your items. Otherwise, you're just spinning your wheels.
Of course, some Sellers buy it for $1, list it for $1 and then it often sell s for over $100. Must be nice.
posted on November 27, 2000 01:34:37 AM
I normally start my things out at the price I want for them, which is my cost/expenses plus a little extra for me. That way, if eBay crashes when my auctions are ending, it's not the end of the world.
90+% of my things sell, at least half the time getting more than one bidder per auction.
Sometimes I'll start a popular item at $.01 with no reserve just to draw people in. Since all my items are related and my descriptions are worded to encourage people to look at my other auctions too, the penny auction often generates bidders on my other things as well. So even if I lose money on the penny auction (and I usually don't), the other auctions more than make up for it.
posted on November 27, 2000 06:01:40 AM
When my husband and I first started buying at flea markets, we were looking for things for our collections and the occasional thing to sell on eBay. Initially, we priced the resale items at our cost. Some sold at prices beyond our wildest expectations but others sold for the opening bid.
When I started to sell jewelry to have money to upgrade my collection, I took a different tack. The jewelry category where I sell is pretty saturated and I'm not interested in selling at a loss. So I choose an opening bid(which may be the only bid) that will pay my purchase price, all my costs, and a profit. I check items in my category daily and have a good idea of what sells. I've only had to relist three items lately. One sold the second time around. One didn't, but since the other items that I purchased at the same time had long since covered the purchase price, I didn't care. The third, however, was a problem. It was an unusual Bakelite bracelet that I had paid $125 for. I tried to sell it twice with a reserve that would cover my cost, but only had one bid. Bakelite dealers at shows told me it was worth about $400 or $500. Since I only sell on eBay, I had no other avenues to sell it so I traded it recently for another Bakelite bangle.( I've learned not to sink that much money into a bracelet I hope to resell.)
posted on November 27, 2000 07:15:00 AM
I sell secondhand books. I price most paperbacks $3-$3.50 and most hardcovers at $4. It's hard to calculate precisely how much I pay for my books because I get a lot of them at used bookstores on trade. But generally I expect my opening bid to represent 3-4 times what I paid for the book.
I use BIN and basically try to guess how much I'd like the auction to end at.
I get better prices on EACH book on Amazon, but they charge more and of course, many of them haven't sold. I have some no-bids on ebay but for the most part they go for at least the opening bid.
posted on November 27, 2000 07:17:17 AM
It totally depends on the item.
Is it in demand or just a mild demand? High ticket? I've started plenty of big dollar items at 1.00, no reserve or even .01 cent no reserve. The last one of these I did brought 1375.00 and 30 bids. I like it!
I've also started items at just below what the approximate value would be if I feel there's a chance for not a lot of bidding activity. I start a lot of 40.00 to 75.00 items at 9.95 or 19.95, never a reserve.
I think getting the first bid is the hardest one to get, unless of course you're starting a big ticket item at 1.00. Believe me, they don't wait long then.
posted on November 27, 2000 07:41:01 AM
I start my bids at $1.00 and put "No Reserve" or "NR" in the title. Average final bid on my items average around $90.00. I've watched others put minimum bids of $45 for the similar items, they'll be at $45 with zero bids and I'll be at $45 with 8-12 bids, and the gap increases for my item the closer to the acution close.
If there is a market for the item you are offering a $1.00 opening bid does wonders.
posted on November 27, 2000 08:53:08 AM
Keystone or tristone pricing (double or triple your wholesale cost)is how I price new and new-handcrafted items in face to face sales, but with vintage/collectible stuff on eBay it's a bit more complex, because "wholesale" cost might be a quarter if you picked the widget up at a yard sale or thrift store. Except for my used books (3.00 paper, 4.00 hardcover) I try not to start anything at over 9.99 and it's usually worked out fine for me..
For anyone who wants to know some really great nuts and bolts info about pricing, and very specific, very concise info about general retailing at fairs, swap meets, flea markets, yard sales, etc.---basically anywhere you sell without a permanent location---a great book is "Shadow Merchants: Successful Retailing Without A Storefront" by Jordan Cooper and published by Loompanics. (ISBN 1-55950-105--7) This book was written prior to the advent of online auctions and doesn't cover internet sales, but it's absolutely the best book I've read on small business sales and a huge percentage of his information is applicable to eBay and online selling. (No affiliation, just someone who read the book and learned a lot.)
posted on November 27, 2000 09:36:40 AM
I go to RL auctions for my goodies and I myself can get carried away bidding.
There was a Fenton slag dish that I thought was a real winner. I bid & bid & bid, finally got it for $75.00.
I get home and do a search and the most that they were getting for bids was $45.00 not meeting a reserve price.
My heart sank.....I held onto it for several months and thought well if I'm going to sell it NOW would be the time to do it.
I listed it $1.00 NO RESERVE. It closed at $112.49. Did the same with another Fenton I had paid $45.00 for it closed at $63.55. When doing search on these dishes and seeing the low prices they were getting, and not reaching there reserves, I was indeed nervous about the dollar thing.
The good thing about the $1.00 start is it gets bids right away, and that looks attractive when doing a search. I hardly ever open an auction thats been running a couple of days and NO bids(because there is usually a reserve). I figure it must not be worth my time to look. BUT...on the other hand if an item has several bids I ALWAYS look because I want to see what the attraction is.
Gotta get them in there to look, then you gotta get them to look at your other "goodies".
I use the "personal photo gallery" (thanks once again preacher4u).
If most people are like me once I've decided I want something, I'm determined not to let anyone outbid me, on eBay or in RL!
Once again, you need to give your bidders a thrill for the chase.
$1.00 opener and NO RESERVE is the way to get a real auction going!
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edited for packer by packer!!
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Having a BAD HAIR DAY! ...
posted on November 27, 2000 10:14:37 AM
reddeer,
I run my auctions for 10 days, thats because I spend the extra 25 cents for gallery and sometimes if I think I have a hot item I will put it in a "featured catagory" those get lots of hits and it leads them to my other auctions.
I usually have quit a few bids already before the closing time. So if eBay does go down when there about to close(had it happen once a couple of weeks ago)I'm still pretty satisfied with the ending price. Thats not to say that I'm unhappy about the down time, because I'm as MAD as everyone else thinking I probably could have gotten more for my item.
Running them 10 days gets me plenty of bids and I've usually reached my goal for what I expect for that item well before the closing time. Snipers is ICING on the cake
It works for me and I'm having a TON of fun doing it.
Before I started this $1.00 stuff in August I was about to call it quits...it took all my spare time to list and I wasn't having NO FUN at all doing it!
Hey! I think if you have to work as hard as we do at this stuff we deserve to have some fun at it.
2 years ago it didn't matter what you put on, everything sold and at a good price too. Now that was FUN!
Its time to shed the notions of what eBay was 2 years ago and adjust to the way it is now....DOG EAT DOG!!
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edited for packer by packer!!
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Having a BAD HAIR DAY! ...
posted on November 27, 2000 10:22:35 AM
Ok, thanks for the info. I'm going to try some experiments on $1 listings this week.
One of the items I have up now, is pretty hot on eBay [Jadite Glass], and I happen to have another stack of bowls like the ones I have ending tonight. We'll see what happens.
If I lose my shorts on em, I'm gonna come looking for ya.
posted on November 27, 2000 10:29:04 AM
Q for those $1 opening bids auctioneers. How long do you typically run the auctions for?
My strategy is: study the competitors, offer what they aren't offering. My opening bids are slightly below my competitors with a profit already locked in. Buy in bulk!!
I've also noticed that there are some truly unique items on Ebay and starting some at $1 would be great at starting the competitive auctionings. I'm not so sure if what I'm offering will work that way.
posted on November 27, 2000 10:29:59 AM
GOOD LUCK reddeer,
Fire King Jadite is a good seller, you should do well if yours is Fire King.
I'll be waiting to hear how you do.
One more thing I do in my auctions.
At the Top of every auction page the first thing they read in BIG letters is:
ALL MY AUCTIONS START AT $1.00 WITH NO RESERVE
I think that alone gets them interested in looking at what else I have to offer.
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edited for packer by packer!!
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Having a BAD HAIR DAY! ...
posted on November 27, 2000 10:35:52 AM
Yes, they're Fire-King, plus I have various other Jadite Kitchenware items to list this week. I made sure to add in BIG red font at the top ... NO RESERVE
Good idea about stating that all your auctions start at $1 with no reserve. Just not sure if I have the cajones to take it to that extreme yet.
posted on November 27, 2000 10:41:07 AM
BTW - I sometimes sell items in the $250-1000 range, I'm thinking reserves is still the way to go for those items. I've been selling on eBay for 3 yrs, and IMO the bidding can be very fickle from week to week. I'm not in the habit of giving items away, and don't plan to start now.
BUT, I am willing to try the $1 no reserve auctions on the items where you can find 10-50 listed on any given week. Could be fun?
posted on November 27, 2000 10:57:38 AM
I guess thats where 2 eBay ID's would come in handy.
I don't blame you about the HIGH dollar stuff unless you know for sure it is a winner. In that case I would put it in "feature catagory" for 10 days to make sure it got plenty of exposure.
I bought a 1931 airplane circus toy(cast iron , metal & wood) at auction a couple of weeks ago and paid $300.00 for it.
MINT IN THE BOX so I thought. I got it home and the little screw that hold the propeller on one of the planes is broke off inside.
I've got to find someone who can fix it(been to a jeweler, he won't even attempt it).
Anyway...I'm real nervous about listing that for a buck. I've done search and found 2 and they were not "mint" the best one sold in the low $100.00's.
So I think it is imparative I get that plane fixed if I'm going to recover my money.
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edited for packer by packer!!
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Having a BAD HAIR DAY! ...
posted on November 27, 2000 11:35:27 AM
reddeer,
To answer your question above that I missed.
Yes, I sell Old & Vintage Collectables.
Just about anything I think someone else might be collecting.
Now days people collect the oddest stuff, it just amazes me what people will pay for today when yesterday(10 years ago) we were throwing it away as useless outdated JUNK!
This screw I'm talking about is the size of a straight pin with threads. Do machinest have tools that tiny?
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edited for packer by packer!!
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Having a BAD HAIR DAY! ... edited because I can't spell!
[ edited by packer on Nov 27, 2000 11:37 AM ]
