posted on June 8, 2001 09:25:57 PM
I know alot of Sellers do very well starting their auctions at $1 with no reserve. I sell alot of videos and DVD's and when I look up the completed auctions on items like what I'm getting ready to post, if my item brings what I seeing I either going to lose money of make very little and lose most of it in fees.I know most people probably look at the over all results and hope everything will average a decent profit but I think I'd rather it go off without a bid. I think it has alot to do with what your selling,sometimes it the only way to beat out the competition.
posted on June 8, 2001 09:41:42 PM
This is an interesting question and I'm dying to know the answer myself! I don't see how they could be making that much on shipping and handling padding or wouldn't they be suspended on eBay?
posted on June 8, 2001 09:43:08 PM
eBay just states that they will suspend a user for "excessive" shipping and handling padding. They don't define what "excessive" is.
------------------------------------------
Still charging exact shipping fees, and darn proud of it!
posted on June 8, 2001 09:59:39 PM
It USED to be you could make money like this...but it isn't so in the items I'm selling anymore.
Sometimes I start an auction at $1. and for the FIRST time put a reserve on it. Only got bids for $10.50 value at over $150...so I canceled an auction with bids (first time to do this too).
Carole
posted on June 8, 2001 11:55:47 PM
I generally start my Pokemon trading card auctions at $1.
The cards have an average cost ranging from $.11 each to $.52 each.
Complete sets and Wizards cards I also price accordingly when I'm selling those - either at cost or just above.
This used to be a very successful way of making money - and it still is but only when the set is newly released and hot. Once it cools down, then you get lots of auctions without bids (the situation I have now).
Will probably shift the single cards over to half.com for a month or two and see if I can move anything over there, and watch Ebay for any activity in the trading cards again...
My starting bid plus S/H fee covers my needs with a modest profit - have no complaints and 72% return customers. So it has worked for me. But moving forward, I think I"ll be making some changes.
posted on June 9, 2001 02:37:25 AM
It definitely depends on what you're selling and when! I would say right now when bidding is down, NO!
Thru the summer I am piddling around with low cost books to get 4 huge bookcases cleaned out. I just added a handling fee if you want to call it that, I weigh the book and then add on a pound for packaging cardboard,paper and tape. I state s/h in my ad so that if I come out 50 cents ahead (usually I don't) they can't complain. But I do this because on such low sales items I can't afford to lose money by underestimating postage and buyers seem to like knowing what the exact postage is going to be in the ad.
I've seen a few items that should ship at $5 or $6 max and they were asking $16.00!
Normally starting at $1 used to make me money, but right now ,it's liable to get just that!
posted on June 9, 2001 04:29:30 AM
$1 starts work very well if what your selling is popular and the section your in is decently surfed and not over-saturated.
We run many $1 starts and not only do we get great bids on 95% of them (some you will lose on). Stuff that I'd expect we'd get $10-$15 for goes off at 3-5 times that.
Its a good idea to "test the waters" with something you have that popular or something you know is popular and hard to find. It doesnt hurt to look at other sellers peddlin' the same things if your unsure as to its popularity.
Alot of things come into play at auctions.
One of the BIGGEST mistakes sellers make is presentations. All of our ad's are highly attractive, informative, have all the details in em', all looks basically the same (faster load times for bidders viewing multiple items). Presentation counts BIGTIME. Would you run to Walmart etc. of the presentations of products in flyers etc. were bad?
Companies hire models and all sorts of fancy packaging as its attractive. Attractive sells in a society that values attractiveness and the US LOVES attractiveness.
We've designed ad's for other sellers and never had a "looser" yet at least that we have heard of. They pay us several hundred dollars and we make a template advertisement thats just a knock out. Many sellers will use "flashy ads" and see no effects. People dont want flash. They want BEAUTY. So whats beautiful? What makes the avg buyer feel nice and homey, comfy, cuddles? Flowers, animals that are attractive and FUN with colors that are soothing. BRIGHT RED IS NOT SOOTHING.
These are all areas true advertising professionals know and use daily on the job.
Consumers and YOU all know it as well. Your subjected to it CONSTANTLY. Drive down the street and see the manicured lawns and flowers. Watch the TV and look at how the ad's are ACTIVATING YOU. Most folks just listen or scan over magazine ad's etc. Your SELLING now and you want to DO WELL. Learn from the pro's... All that takes is instead of looking at ad's and moving on take some extra glances and SEE how they are trying to activate the viewer into seeing their product as ATTRACTIVE, attractive SELLS.
EVERYONE is a consumer. You go to the market and get groceries, or sears, or malls, car dealers etc. ALL consumers. As a seller you need say "WHAT ACTIVATES THE CONSUMER"... Americans are lucky in this regard as virtually anyone who takes the time to "pick apart advertising" to see the clues that activate the buyers can be a sales whiz.
As to auctions... Well people do come to bid.
Alot of folks been yelling that eBay sales are down and to some extent they have dwindled every year at least for us. Again lots of various reasons all combined into various results. One of the biggest reasons however are people running lots of fixed price items. People come to auctions to bid.
Dont be afraid to try $1 starts, they can work wonderful especially once people "find out about it". They keep coming back looking for more, the enjoyment of the auction is the bid not ONLY fixed pricing.
Signed: WhyNot!
posted on June 9, 2001 04:54:08 AM
whynot, can you show us an example of an ad you've designed? If you can't post it here my email is [email protected]
I have to admit some professional ads turn me off and I go to the simpler sellers. But we've already had threads about that (ie music, jumping or running anything, etc.)
posted on June 9, 2001 05:36:18 AM
"2. Listing hundreds, if not thousands of items
...
Chances are they aren't making a profit, but in the long run, it is worth it to them to start them out low."
Oh I get it. I'll lose money on each sale but make it up by selling in quantity.
posted on June 9, 2001 05:45:12 AM
Good question...
A friend of mine and I went to an auction that was closing out a very nice gift shop boutique and we bought a 500 lot of ornaments that retail for approx $40-$50 and paid only $3 a piece. We split the lot and she started hers out at $1 and I am starting mine much much higher as I know the completed items are selling for higher. Yes, she has sold more items and each week I have several that haven't been bid on.
BUT she is pretty much out of stock and has averaged $15 a piece selling price and I have sold only about 50% of my stock and am averaging approx $22 a piece. Now I can hold the other 50% and wait until Christmas and make a killing.
I would much rather do it my way then act like the martyr and start them under profit and I don't have to sit and hope and pray they will sell for a decent amount. She has actually sold several pieces for just $5 - $7. I wouldn't dare! I am running a business and I act like it.
Good luck
posted on June 9, 2001 06:04:29 AM
Since Jan 01, I have used the $1 no reserve on all of my auctions. I used to do it once in a while, but noticed that when I started items at $1 my profits increased. There are times when an item will sell for a dollar, but I consider that a learning experience. I just dont buy that particular item again!
I sell clothing, usually vintage or unusual types that are not that easy to find. I will however, sell brand name items that usually cost a small fortune in the store.
Of couse, since my start bid is $1, just about every item I list sells. I have had a total of 5 items since January that did not sell. Since most of the items I purchase cost me anywhere from 3 - 6 dollars, it isnt a big deal. If I spend more than that on a particular item, I feel like I am breaking the bank!
Now, I know that the $1 starting bid works for me. Why? I have been selling the same type of items for over 3 years now. However, once I started my items at $1, ebay has been asking me every month to join their bogus PowerSeller program. I sell less now than I used to, and I make more money. I no longer list an item that is going to make me $5. Unless, I mess up.
I honestly don't think the starting bid represents much, unless you are starting your auction at the price you want. My highest item that sold this year was $635, a couple of items sold at $500, and at least 3 a month that sell for over $100. So, I figure I am doing something right. Also, many times my things sell higher than other auctions that are the same as mine. I sold an item last night for $60.00. Another seller had the same one, she sold it for $25.00....
No, I dont charge outrageous handling fees. I add .50 to my shipping cost in case an item is lost. Nothing else......
[ edited by pumpkinhead on Jun 9, 2001 06:17 AM ]
posted on June 9, 2001 06:27:50 AM
I don't have the stomach for it. I tried it once and ended the auction early.
I think in some categories it may work in reverse. Last week I listed a book for less than $4 and didn't have a bid for the first three days of the auction. I ended it early and used the option "mistake in opening bid or reserve." Relisted for more than twice as much and got a bid the first day out.
I think it's a great marketing tool, but I'm just too chicken.
posted on June 9, 2001 06:50:22 AM
It really depends on what you're selling and the demand for it.
Dept 56 items can start at a penny and go for well over $100 at Christmas.
OTOH, an everyday collectible can start at $1 and sell for $1.
Really hard to give advice on this one, because the market changes all the time. What sells well one week may not move the next.
I knew a power seller who listed thousands of items each week. He started everything at $1. He's now NARU because he couldn't keep up with the shipping. He also had a group working for him. Somehow they all fell behind and never could get caught up. So, listing thousands is always the answer either.
You have to start your minimum at whatever feels right to you. If you pad your shipping, ebay will get you eventually. You may make some profits on it, but with the bidders as bargain happy as they are now, you won't get far.
posted on June 9, 2001 08:29:46 AM
"Do $1 Auctions make you money?"
ABSOLUTELY!
When I'm at RL auctions I can't possibly know what everything is currently going for on eBay. I have to go on what I LIKE and what I know from past sales.
And you always end up with a lot of stuff you haven't a clue about, it usually comes with that one particular item your after.
I sell vintage - collectables. ALL at $1.00 NO RESERVE!
If I think I have something here that someone may need to add to or complete their collection I put it on and let it run its course.
I usually run things in batches, for instance I recently finished a run of Fostoria Glassware, it encourages buyers to make multiple bids.
Then I may run just light weight items(things that can go 1st class), this encourages multiple bids and buyers aren't paying 2 arms and a leg for shipping. Anyway you get the picture.
I look at the OVERALL profit of my auctions.
2 weeks ago I spent $140.00 at a RL auction. Came home with a van load.
I've listed only a small portion of that stuff so far and already am upwards to $600.00 on the lot.
Yes, some things will only sell for a $1.00 or there abouts, but the things that sell for way more then I ever expected makes up for it. And I've givin someone a good deal so more likely then not they'll be back.
Since I do sell alot of glassware I do charge around $.50 for handling. I can't sell something for a dollar and pay all the fees plus donate my bubblewrap & peanuts to boot.
I go into this as if thats all I'm going to get is $1.00 per auction.
Thats why the PayPal increase is not going to fly for me.
I don't mind selling someone something for $1.00 but I certainly don't want to go in the whole doing it.
I started selling $1.00 NO RESERVE last August when sales were slow but just starting to pick up. In the 3+ years of selling it has proven to be my best year on eBay. And I NEVER have to pay for relists.
I'll never go back to setting a price I think I got to have. Because from expierience it will only get 1 or NO bids.
I can list 30 items and end up with 200+ bids. If you don't think that isn't thrilling then you better think again.
posted on June 9, 2001 08:51:16 AM
It comes down to whether there's likely to be competition for the item or not.
If there's likely to be three people seriously interested in the item, then starting it out at $1, no reserve, is best, regardless of its value.
If this is one of 20 just-the-same items listed at any one time, then it's likely best to start higher, perhaps at or near one's expected selling price, because there won't be any real competition for any particular one. This lack of competition applies to a huge category of mostly new merchandise.
Some very high value items are in such sparse demand that they'll likely attract 0 or 1 bids whether the starting price is $1 or $1000.
posted on June 9, 2001 09:04:16 AM
roofguy,
You quit right. It all depends on what you sell.
I've paid upwards to $100.00 and more for a single item and listed it for $1.00 NO RESERVE. But I'm very careful about when I list it and what category I list it in. And I usually put it in "feature category". I will always get 2-3 and sometimes more times what I have paid for it.
Is it scary doing that? YOU BET IT IS!
The best part is most things I list get bids right away and I usually get bids throughout the bidding period.
People(myself included) can't resite looking at something that has a 1/2 dozen bids the first or second day it is listed.
I run all Auctions for 10 day and use the picture gallery. Thats $.65 per listing for eBay alone.
I really like it now that eBay has made the search results default to include the gallery pic.
posted on June 12, 2001 09:08:51 AM
I have been very disappointed in my $1.00 auctions, so I don't have them anymore. I never pad the shipping, so I usually lose money.
posted on June 12, 2001 09:12:58 AM
I used to start my cds out at $1, but then half.com started popping up to the bidder...hey you can get this cheaper at half.com and had search box, etc, so now the cds don't go well at all, even the new ones. People want to buy a new cd for 75 cents. geez.
posted on June 12, 2001 10:28:23 AM
I sell the vast majority of my items at 0.99c with No Reserve. I list around 5 items per week on average with ending values of between $80 and $700. I find that my items finish with higher ending prices than people selling the same item with a high opening bid. I rely on the fact that bidders HATE receiving the You have been Outbid notification and just can't resist adding another few $. Having 20 and 30 bids on a high value item also attracts lots and lots of hits It works for me
posted on June 12, 2001 01:41:11 PM
I start some of my auctions at $1 either, large lots of jewelry (always sell well), jewelry items that are not prime condition but still desireable, A relisted item which there are very few, and items I have no clue to the value of. 90% of my $1 auctions do well esspecially the relisted ones. Often the item relisted with an original $5 starting bid clkoses much higher then the original price.
This saves me tons on listing fees I know many items will sell for well over $20 but I refuse to start any auctions over $9.99 that $.25 saved adds up fast.
posted on June 13, 2001 12:56:42 AM
We start 95%+ of our auctions at $0.01, not even bothering with a $1, and never a reserve. Our average item sells for about $171 dollars and we close about 2500-3000 eBay auction sales per month.
posted on June 13, 2001 09:55:40 AM
homeatmospheres: Your friend is utilizing the smart business practice of turning her inventory. The profit she made from selling her ornaments quickly she can now reinvest several times over in the coming months, while you sit on your ornament stash, waiting for Christmas.
posted on June 13, 2001 10:57:49 AM
Here are some interesting results:
I launched three auctions for similar items with matching values of approx. $130.00 each.
ITEM #1 Started at $1.00 with no reserve.
It had over 500 hits and nearly 40 bids. Sold for under $85.00.
ITEM #2 Started at $1.00 with a reserve.
It had over 300 hits and 10 bids. The reserve was met but not exceeded.
ITEM #3 Started at a set price. It had fewer than 250 hits and received one bid.
I list in a fairly competitive category and anything can change on a whim, so these results are only a glimpse of the big picture. Nevertheless, the most compelling information I discovered is that a $1.00 "no reserve" auction, especially in a featured category, will attract bidders. Hopefully, these bidders will be attracted to my other listings as well. If I need to protect my investment, then the reserve auction appears to be the best middle ground.
