posted on November 22, 2000 08:12:07 PM new
Hi,
I usually don't set reserves on my auctions. But this time I have a quite scarce book and I don't feel like taking a chance that it will sell for too little. (I own an online bookstore and am sure that if I don't get enough on eBay that I will sell it soon anyway.)
The item started at $5.00 but the reserve is $75.00, very reasonable for this particular book. It has a couple of bids on it, but nowhere near the reserve. It ends on Sunday.
I just got an email from someone saying "i just wanted to find out how much you set the reserve for in the above auction." I don't know what to do with that. Should I tell her?
posted on November 22, 2000 08:24:38 PM new
Sure why not reveal your reserve in fact ebay has a new feature called the buy it now price make your reserve the buy it now price http://www.Dman-N-Company.com
posted on November 22, 2000 08:40:57 PM new
I don't reveal reserves until after the auction has ended. I find it discourages bidding. However, some users get angry when you don't reveal the reserve. I figure that's there problem, if I wanted to reveal it I would mention it in the description or make it the opening bid...
posted on November 22, 2000 08:51:15 PM new
Umm its a reserve price its not a secert price the Idea and name of the game is sales not Hide your price.
object of this is to sell all your items the people that sell all there Item are the winners if asked about a reserve is reveal it.
I dont know one sales person I could walk up to and ask the price on the Item who would tell me I cant tell you its a secert or reserved. ask your self this reserved for who if not the guy asking to buy .
posted on November 22, 2000 09:09:22 PM new
I do know about Buy It Now and have used it successfully but I didn't want to to use it this time as I think starting it at $5 and setting the Buy It Now price at $75 may discourage bidding.
Anyway that isn't an option for me now, 'cause as I said in the first post, there are a couple of bids on the book.
Thanks everyone for your opinions, I think I will email the person & tell them what the reserve is.
posted on November 22, 2000 09:15:40 PM new
Not revealing a reserve has strategic properties in a "real" closed bid auction. eBay's use of proxy bidding makes a "secret" reserve unnecessary. I always reveal the reserve when asked. As to revealing the reserve "decreasing bidding", this has no effect on the outcome. The guy who had a maximum $25 in mind for your widget is not going to bid if you tell him a reserve of $50, but this has no effect on the auction's ending figure.
Tony
posted on November 22, 2000 09:15:51 PM new
Not revealing a reserve has strategic properties in a "real" closed bid auction. eBay's use of proxy bidding makes a "secret" reserve unnecessary. I always reveal the reserve when asked. As to revealing the reserve "decreasing bidding", this has no effect on the outcome. The guy who had a maximum $25 in mind for your widget is not going to bid if you tell him a reserve of $50, but this has no effect on the auction's ending figure.
Tony
posted on November 22, 2000 09:31:26 PM new
It does still make a differenc with proxy bids, because those that reveal their reserve and if its too high, don't get any bids, whereas, those who don't reveal will get a number of bids and the more bids and interest an item receives, the more bids it gets, I have tested this theory and it works...
posted on November 22, 2000 09:59:04 PM new
I don't sell much anymore but I only reveal reserves to ACTIVE bidders. Why? If I reveal reserve to someone who hasn't bid yet, 9 times out of 10, they never bid!
BTW .. since I started putting the following statement in my auction description, I have not had a single request for reserve amount:
"Although some bidders do not like them, I have chosen to place a reasonable reserve on some of my auctions due to recent site instability on ebay. ACTIVE bidders please feel free to email me if you would like to know the reserve amount."
_____
I have a memory like a steel trap .. unfortunately it's rusted shut!
posted on November 22, 2000 10:12:30 PM new
Okay, I just posted this question in another thread, but this sounds like the better forum.
Why have a reserve at all? I've sold items from $1 to $1000, both with and without reserves and could tell no difference in bidder activity or in counter hits.
As a buyer, I really hate wasting my time bidding on an item that starts with a low minimum opening bid, when the item in reality has a reserve that may be literally a hundred times higher. As a buyer, I'd rather know up front if it's out of my price range. Too, I won't bother a seller with needless questions about the item if I ultimately know I can't afford it.
I'm sure that reserve auctions serve some purpose or a lot of sellers wouldn't use it. What am I missing here? "Splain' it to me, Lucy".
posted on November 22, 2000 10:15:34 PM new
Continuing...
If the seller is worried about getting too little for a valuable item, as mentioned above, what is the difference in a reserve auction and simply setting a minimum bid? In either case, the seller is not obligated to sell if his price is not met. I've got to be missing something here.
posted on November 22, 2000 10:24:49 PM new
Many who use reserves don't use them properly. I have seen items with opening bids of $35.00 and the reserve is set at $45.00! I have also seen items where the opening bid is $9.99 and the reserve is $2,000! In real auction houses, the opening bid is usually 1/4 - 1/3 of the reserve price. so an opening bid of $9.99 should mean the reserve is about $35.00.
I agree with the other comment that 9 out of 10 who ask what a reserve is, never bid, suggesting they are just being nosey!
Also, I don't know of any real auction house that reveals reserves before the auction is over...
posted on November 23, 2000 12:50:49 AM new
Let me show you what you are doing wrong.
You list an item you want $75.00 for.
You start the bidding at $5.00 ????
All you do is get non-essentail bidders bidding on it. So maybe you get 20 bidders, so what !! If the reserve isn't met, yoor item does not sell. So now you have to relist it and pay listing fees again !!
If you wanted $75.00 for your item, then start the bidding at $75.00 !!!!
Even if you only get 1 bid, it sells and your done with it !!!!!
Question : Did you list your item to sell it or just to see how many people would be interested in it ??????????
Do you get my point ?
Nuff' said.
[ edited by cix on Nov 23, 2000 12:52 AM ]
posted on November 23, 2000 01:05:18 AM new
cix, I'm not doing anything wrong. You have to realize there are psychological reasons for the ways people bid.
1) The more bidders there are, the more the auction attracts attention. Bidding attracts bidding. Don't you pay more attention to items that already have bids on them? Don't they catch your eye?
2)Reserves aside, no one wants to bid $75 on an item worth $75 with an opening bid of $75. It's no fun. Most folks would rather put in a bid of $20 with a proxy of $75, if they are willing to spend that, and hope they get it for less. It is perceived value.
It's the same reason why, when an item is clearanced in a store, they cross out the $10 price and put $5 below it in red ink. The price would be the same if they just put a new, $5 sticker on it, but there is not the perception of value that that markdown implies. The item with the crossed-out price will always outsell the same item with a brand-new price sticker, even if the end price is the same. After 15 years in retail management that is one thing I know for sure.
Also, why should I pay listing fees for $75 when I can pay listing fees for $5?
posted on November 23, 2000 01:13:46 AM new
I guess you answered my question.
You are more interested in watching your auction get numerous bids from non-essential bidders than actually selling your item.
Yes there are non-essential bidders. Non-essential bidders are the ones who bid on auctions with reserves that start at $1.00 or so. They bid $1.00 and start the bidding off. Their bid is no where near the reserve, yet they choose to bid knowing completely they have no chance of winning. Why bid ???
If you truly had 15 years experience in retail, I would expect you to completely understand what I am telling you.
Ok, a $75.00 auction cost more to list, but it will cost you the same if you keep relisting your auction over and over with a reserve and it doesn't sell.
My point to you is, if you want to sell your item list it for what you want and sell it, don't play the reserve game. It is a waste of the non-essential bidders time and yours.
[ edited by cix on Nov 23, 2000 01:14 AM ]
posted on November 23, 2000 01:27:53 AM new
cix, I DO have more than 15 years in retail, as a store manager for high-volume stores. I presently own my own business, a bookstore, and sell a few items on eBay as well. And I DON'T agree with what you are saying.
I can't believe that you will not admit that bidding attracts more bidding. Fonthill knows what I am talking about when he says
"It does still make a differenc with proxy bids, because those that reveal their reserve and if its too high, don't get any bids, whereas, those who don't reveal will get a number of bids and the more bids and interest an item receives, the more bids it gets, I have tested this theory and it works"
You get much more interest in an auction by starting it low, than by starting it high.
You must be joking when you say I don't care about selling my item. Just try it: start two identical items worth about $50 at the same time, one at $5 and one at $50 and see which one sells. There is a reason for this. IIf I had started the bidding at $75 I really doubt this book would sell, though I do expect it to now.
Have you never had this experience: Say you start an item at $20 and you get no bids. So you relist it at $10 and it winds up ending at $25 or more. See how it works? This is not an unusual situation. That is very very typical as I am sure others here can attest to.
posted on November 23, 2000 01:34:25 AM new
"Just try it: start two identical items worth about $50 at the same time, one at $5 and one at $50 and see which one sells. "
I have done that and both sold. You are missing the point. You are talking about reserves !!!!!!
You see I have more guts than you do. If I knew the book was worth $75.00 I would list it for $24.99 (without a reserve) and watch it go up.
I know what you are trying to say, but it makes no sense when you throw a reserve into the equation.
[ edited by cix on Nov 23, 2000 01:35 AM ]
posted on November 23, 2000 05:11:50 AM new"Also, why should I pay listing fees for $75 when I can pay listing fees for $5?
But you are paying listing fees for $75. they are based on the reserve price no opening bid. Actually you are paying more. If you start at $5 with a $75 reserve the listing fee is a total of $3, $2 plus $1 reserve fee and you lose the $1 if it doesn't sell.
posted on November 23, 2000 05:27:13 AM new
Thanks, Cariad for bringing that up. Many people don't realize that when they list an auction with a reserve, they pay the listing fee based upon the RESERVE price, not the starting price.
posted on November 23, 2000 05:41:20 AM new
I always used reserves on eBay, till the charging began, not only do I seldom use them now, but I took most of my auctions to Yahoo - BUT to reply to your question - on eBay for 5 years, when people asked me the reserve I ALWAYS told them with no problems - in fact "if" I had an auction, lets say closing that hadn't met the reserve, the night before that auction closed I wrote all bidders, thanked them for participating, told them that the wigget had yet met the low reserve of so & so, and wished them luck. Most of the time these auctions closed with a winner and more!
Reserves are for your protection, Not A State Secret!
posted on November 23, 2000 06:36:53 PM new
"Reserves are for your protection..."
How? I can set a minimum bid or reserve bid at the same price. Either way, if the amount isn't met, I don't have to sell. Why does this protect me as a seller?
I'm afraid the arguments for reserves don't seem to apply to my auctions. I've unloaded a lot of high-end audio equipment and photo equipment on eBay and most of my buyers have surfed the net and local stores before they come looking at eBay. Once in a while, I get someone asking for a bargain, but in all cases, I've gotten my minimum bid, or reserve if I used one. I've not been able to tell the difference.
Perhaps there are a lot of buyers out there that just go to the auctions that have lots of hits, and then they get caught up in it, but I've not experienced it in my auctions.
Come on folks, how about some more advice on reserves? I really want to hear why people do this.
posted on November 23, 2000 07:02:53 PM new
NO In fact when I am bidding an Item with more bids Does not attract my attention I aviod auctions with lots of bidding.
I look frist for low start price no reserve ending in a few hours ..
Then I move up the price range but still look for auction ending soonest with no bids .
I sell mostly but when I bid Im out for a hit On an Item with a price I like one bid little chance of getting out bid then I get the price I want and I dont wait 5 to 10 days watching the auction and going back end up oaying twice what I wanted.
so if your auction has no reserve little to no bidders with 2 to 20 till it ends you would get my bid.
it is my guess that 80% of all bidders are bidding this way all want to pay what they want to pay and they want it over quick and painless this is why snipeing is so big and buy it now on the right items will be a huge hit as well.
posted on November 23, 2000 09:08:22 PM new
From a buyer's perspective, if an auction for something worth $75 opens with a $75 bid I don't even bother to bid. If I have been searching for that item and know that I'll have to pay at least $75 in order to get one, I might watch it and bid on the last day if I haven't found one with a lower starting price before then. I think there needs to be the perception of "getting a bargain" whether it actually happens or not.
I agree with Dman3 on revealing reserves. The goal is to sell the item, not play a game of "keep away." If I inquire what the reserve is and the seller refuses to reveal it, then I will not bid. (I have only inquired once.)
From a seller's perspective, I will occasionally use a reserve when I feel that opening it at my minimum price would inhibit bidding; but if I open it lower then I am risking selling it for too little, especially if ebay has one of their infamous slowdowns. (But I rarely use reserves.)
Violetta
(Not known by this nickname anywhere but here.)
posted on November 23, 2000 09:48:27 PM new
I'm interested in knowing why people consider bidding in reserve auctions to be some kind of "guessing game".
Suppose you had two auctions to choose from, both by the same seller, with the same shipping terms.
Sceario 1: Gold plated widget, starting bid of $10 (and a hidden reserve of $100), with no bidders at this time.
Scenario 2: Gold plated widget, starting bid of $10 (no reserve), with a bid of $10 showing from a previous bidder, whose proxy bid is $100.
In both cases, you would not have the opportunity to purchase the widget unless you were willing to bid over $100 (10x the current bid), although in either case, there is no way to know that before you bid. Looks to me, it's a guessing game either way.
Actually, the reserve auction allows you three options, all in your favor, that the non-reserve does not.
1) If the item does not reach the reserve, there is always the possiblity that you can come to an agreement with the seller on a price that may be even lower than your initial bid (which the seller does not know). In a non-reserve auction, if you're not the high bidder, there is almost no possibility that you will be able to purchase the item.
2)If you really, really want to know the reserve, you can ask the seller- he just might tell you. I suppose you could ask the current high bidder in a non-reserve auction what his high bid is, too- I wouldn't expect him to be very helpful, though.
3) Many bidders pass up reserve auctions without even considering the item, which can mean less competition.
posted on November 24, 2000 06:50:26 AM new
Mrpotatoheadd - There is a difference between a hidden reserve and a high bidder's proxy. First of all, in my experience, some sellers have outrageously high reserves on things. If I've been watching auctions and know that this thing I want is worth about $50, and I find one with a reserve on it, I figure that chances are the reserve is closer to $100. If it looks really nice, and I have the time, I might ask the seller what their reserve is so I know if it's worth wasting my time bidding on it or not. As far as a bidder having a high proxy, I find that is not often the case. So if I find an auction with a bidder on it, I don't usually anticipate that their bid is very high -- so I feel comfortable about going ahead and bidding. Sometimes they do have a high proxy and I lose. Often they do not.
But when a seller is politely asked about their reserve and they send back a smug retort, it feels like they are just teasing... "Here is this nice thing I have -- you can look, but not buy." That is why I usually avoid auctions with reserves on them. I don't like having games played with me.
The other thing, there is a certain amount of emotional energy expended in bidding. One is committing a certain amount of one's dollars and time to that auction once one bids. And even if you bid and lose (don't meet the reserve) you are not entirely free from that auction, emotionally, especially if you're the high bidder even though you didn't meet the reserve. You never know if the seller is going to make you an offer if it ends without the reserve being met. And their offer might be too good to refuse -- so you can't just walk away from it (if you wanted it badly enough to bid on it). There is a certain amuount of emotional commitment when you bid on an auction, and sometimes you want to know ahead of time whether it's worth that emotional investment.
Violetta
(Not known by this nickname anywhere but here.)
posted on November 24, 2000 07:15:07 AM new
I never feel if I bid on a $10 item witha $100 reserve on it that in the end reserve not met I would maybe be able to bargan a price better then my orginal $10 or $15 bid if I would be able to get the Item for better then say $15 they wouldnt want to use a reserve. http://www.Dman-N-Company.com
posted on November 24, 2000 07:28:32 AM new
Well, as a seller I always offer to tell my reserve to anyone who asks. I've had a lot of people ask, but I can't honestly say I remember anybody who asked actually bidding [and no, my reserves are not unusually high -- they usually get met before the auction ends]. The only reason I do this is because I have heard so many people complain about reserves that I feel I need to make some concession. However, I've been thinking about changing my policy to revealing my reserve to anyone who has actually PLACED a bid, instead of anyone who asks.
On the other hand, as a buyer I frequently ask what the reserve is on an item I am interested in, and if the reserve is within my price range I usually place a bid. Sometimes I'll place a low bid anyway just to say "thank you" to the seller for telling me.
Regards,
Barry
---
The opinions expressed above are for comparison purposes only. Your mileage may vary....
posted on November 24, 2000 07:45:53 AM new
dman3 - I don't think you understood me. I have frequently placed bids that didn't meet reserve and then have had the seller offer it to me for less than my proxy. For example, if I thought a dish I wanted was worth $30, the opening bid was $9.99 with an unrevealed reserve, so I bid $32 (but didn't meet reserve so it closes at 50 cents above the previous bid - say $17.15). After the auction ends, the seller emails me and says that their reserve was $30 but they would be willing to split the difference between my bid and their reserve... so am I interested in buying it at $24? Of course I can't afford to pass that buy up if it's something I've really been wanting! (If I'd assumed that by not meeting reserve I was all through with the auction and gone on and spent my dollars elsewhere, then I'd be stuck and not able to accept the seller's offer.)
Violetta
(Not known by this nickname anywhere but here.)
posted on November 25, 2000 05:07:01 PM new
I sell new digital cameras exclusively on Ebay. I start every auction at $1. I never use a reserve anymore! (Yet I still have fools emailing me asking what my reserve is! FYI - I no longer reply to any questions about my reserve - Even when I used reserves I NEVER sold an item to someone who had emailed prior asking for the reserve!) I have faith in my ad design skills and Ebays ability to funnel buyers my way, and this strategy has worked 100% of the time! I used to start the bidding at my cost (figuring worst case scenario I would break even). I would usually get 3-5 bids and sell the camera for a reasonable profit. Then I decided to try the $1, no reserve, method and I average 20-40 bids and 3x the page views! And the greatest thing is I AM GETTING ON AVERAGE 15% higher prices for the same identical auctions! And anyone who thinks early bidders are Worthless does not understand the sniping game - if two bids come in at the very end of the auction for the same amount, the tie breaker is WHO BID FIRST? If I am the first bidder at $1 on an item that I later snipe at auction end for $1000, if someone else snipes $1000, I WIN!
