How buyers determine your Reserve amount on Ebay

[goamules]

For anyone who sells on Ebay, have you ever wondered why when you have a reserve, and lots of bidders, it seems they all know exactly where the reserve is? When I sell items that are fairly pricey, the bidding starts at $1, has lots of activity up to about $150, then settles down for the week. Towards the end of the auction, some anxious people start bidding again. Then, with seconds to spare, one or two suddenly bid....perfectly....just at my reserve. For example, if I have a $500 reserve, it will get won at $500 or $503. Never much higher.

Of course, if I set the reserve low, it would sell higher than the reserve. But I usually set the reserve at "the going rate" for that lens or camera. I get a lot of people fishing early on, thinking they're going to get that Dallmeyer Petzval 3B for $199 or Leica Summicron for $47. Why not just set the bid starting at $200 or whatever? Because ebay charges you more, the higher your starting bid is set.

Anyway, I think I figured out how people determine the reserve. Note the guy below, fishing twice to see if he can meet reserve. Then he Retract's his bid. If he guesses too high with his bid, he'll just retract it again, and come back later to bid right on the money. He's gaming the system, and Ebay doesn't care. Also it's typical that he's in a country I do not ship to for this item. It's in my description, and it's set via the Ebay system. Yet, there he is, getting ready to screw up my auction, if I don't cancel his bid. Of course, he'll throw one in the last 6 seconds, and blow away the good buyer that was about to win. Then I have to cancel his win somehow, talking to Ebay, which requires I wait 7 days to see if he will "agree to cancel", before they will force the cancel. Weeks later I get a refund for my trouble, and get to relist the lens. This is why I hate the global market - there are no global ethics.

[Rael]

That's pretty sneaky. Also though, If only one person has bid on your item over the reserve price, then that becomes the highest bid, but if it's the only bid over the reserve, if it wins, the bid will be lowered to the reserve price. So if you are selling something with a reserve of $500, and it gets bid up to $400, but then some guy comes along and puts in a $600 bid, and the auction ends without anyone bidding against him over the reserve, his winning bid will be lowered to $500. Only if someone else exceeds the reserve price will there be two people bidding against each other and raising the price. http://community.ebay.com/t5/Archive...qaq-p/11748979

[baro-nite]

IMO setting a reserve is only giving eBay money, and reducing the number of interested bidders (many buyers don't bother with reserve items). I've followed auctions with a low initial bid and a BIN, and seen them go for well above the BIN price. The best way to take advantage of eBay bidding psychology is to use the minimum opening price and have a real auction. Yes, there's the risk that it sells for less than you hoped. Either that or go BIN only at the price you want to sell, and keep listing until it sells.

[ic-racer]

I never understood the reason behind a 'reserve' price. I have never bid on any item with one or sold with a reserve. I interpret 'reserve' as 'it is not really for sale' so I ignore those listing.

[StoneNYC]

I usually only sell as buy-it-now, the reserve is only if I do an auction for stuff I don't care about but don't want to get totally hosed on. I also don't understand your comment on a person outside of the country you'll ship to. If they're outside of the country that you'll ship to, and you have your settings right, then they won't be able to bid in the first place so I'm confused as to how you're able to bid on something when you set your settings properly to eliminate that country.

[MAubrey]

Well, I figure out the reserve price by simply messaging the seller.

9 times out of 10 they're willing to tell me.

[480sparky]

But what good does that knowledge gain someone?

If the person has figured out your reserve for your Flaremaster 210/5.6 is, say, $300, what steps can he do that will be of a benefit to him? Bid $300? Then what? Can he possibly know how many others are going to bid, and what they are going to enter for a bid? He certainly can't prevent others from bidding more. About the only benefit I can see is him thinking, "Hmmm, I don't want to pay that much for it. I'll direct my efforts elsewhere."

If your reserve is $300 and he bids $300 and no one else bids more, he wins the lens for $300 and, well........ you got what you wanted out of the lens. If he bids MORE than $300, but no one else bids more, he wins the lens for $300 and, well........ you got what you wanted out of the lens. Heck, he could bid $1,000,000,000,000, but if no one else bids more, he wins the lens for $300 and, well........ you got what you wanted out of the lens.

[pdh]

But what good does that knowledge gain someone?.

for one thing, the reserve might be more than the potential bidder is willing to pay, and move on looking elsewhere for something within his or her price range that s/he might win for what s/he is willing to afford to pay ...

[Jeff Dexheimer]

The best option is to not use reserves. You get more $ with no reserve by attracting more buyers. If you do use a reserve and your item sells for exactly your reserve or just a little more, what is the problem, you got what you wanted. If you wanted more, don't use a reserve.

[480sparky]

for one thing, the reserve might be more than the potential bidder is willing to pay, and move on looking elsewhere for something within his or her price range that s/he might win for what s/he is willing to afford to pay ...

Apparently you stopped reading after the first sentence of my post.

........ About the only benefit I can see is him thinking, "Hmmm, I don't want to pay that much for it. I'll direct my efforts elsewhere."........

So this means you're wanting more for a specific item than one particular person is willing to pay for it. Who's fault is that? The potential buyers? Ebays? The 'free enterprise' systems?

Suppose your Flaremaster 210/5.6 has a reserve of $300, and it ultimately sells for $300? Isn't the $300 reserve the minimum you're willing to sell it for? And didn't you just sell if for $300? How have you been harmed by one potential buyer figuring out your reserve?

Again, what advantage is there to a potential buyer who knows what your reserve is? How is that detrimental to the seller?