posted on November 28, 2000 05:55:52 AM new
I would like to buy some new "everyday" china, so I was searching along in the china department. I found an auction that had an opening bid of $9.99 (no reserve) with a BIN price of $150.00 There are no bids at this time. Now of course I don't expect to pay 9.99 for a complete set of china, but here is my question. It is clear that she/he hopes to sell the set for around 150.00 An opening bid of just 9.99 with no reserve seems a little (a lot) risky. This is the first BIN auction I have stumble upon, is this the norm?
posted on November 28, 2000 06:06:13 AM new
Yup, it is a risk she takes. If no one bids, you can snipe it at the end of the auction for the starting price, if there is no reserve on it as well.
posted on November 28, 2000 06:13:07 AM new
I think some sellers are trying to use the BIN price in place of a reserve - it won't work. But I have seen posts on this board where it was evident that the seller was attempting to do just that.
I use 99% BIN prices, but my opening and the BIN price are the same.
posted on November 28, 2000 10:39:28 AM new
I think the seller knows that the set would ultimately do much better than $9.99, but her BIN price is what it would cost to get her to end the auction early.
Just bid your max and let it go, as you would with any other auction.
posted on November 28, 2000 11:16:59 AM new
I list some valuable things for $1 no reserve- but only when I'm sure that they are in demand. So the risk is minimal- and the low starting price makes them stand out from the pack and hooks a lot of bidders. Most of these auctions seem to do better than if I'd just listed a high opening bid.
I don't set a BIN option on these.
On my auctions for routine items, I set the BIN price at about 20% above the opening bid price. About half of my things are being sold via BIN- about 50 in the past week. Lots of folks are willing to pay a premium for the assurance and speed of an instant sale.
jwpc: Try a batch with a BIN higher than opening bid- you might find folks will pay it!
posted on November 28, 2000 11:19:20 AM new
One more thing to consider about BIN auctions. What happens if someone with a not so wonderful feedback ends up winning? You can't kick them off, they've won. Just another spin on risk. -- on the flipside of course
[ edited by avmom on Nov 28, 2000 11:57 AM ]
posted on November 28, 2000 12:29:09 PM newI list some valuable things for $1 no reserve- but only when I'm sure that they are in demand. So the risk is minimal- and the low starting price makes them stand out from the pack and hooks a lot of bidders. Most of these auctions seem to do better than if I'd just listed a high opening bid.
I can certainly understand this theory if your offerings are very unusual and in high demand. Hypothetically, what if you do not get the bids you expected? Do you just take your lumps and lose your profit (and possibly a good share of your intitial investment?)
Normally I do not sell high ticket items but you can bet your boots I would not start an auction at 9.99 if I hoped to get 150.00 or more. Unfortunately my auction experiences have not made me that optimistic!
