How buyers determine your Reserve amount on Ebay

[Sirius Glass]

And this is why I would rather use KEH, Samys, B&H, APUG or Large Format Photography Forum Classifieds. I guess if I wanted at least a certain amount of money I would use BIN rather than Reserve if I could not sell it one of the above.

[Kevin Crisp]

I also don't bother with reserve listings as a buyer.

When selling, I think about what number would be a good deal for somebody, but not so low that I'd end up kicking myself. That is the opening bid. Once somebody bids that, people know this is going to somebody and they will get competitive. If it goes for the opening bid, then I'm not kicking myself. If nobody bids that high, no harm done.

[HMG]

Will people who are wiser than I am explain the difference between a reserve set at $x and an opening bid of $x. Either way, the item won't sell unless someone wants to pay at least $x for it. The only difference I can see is that an reserve is invisible and tells me nothing about the least the seller will accept for the item. And then, if I'm willing to pay as much as $y for it I can bid $y and then que sera sera.

I think that you're all, um. overthinking the problem of extracting as much as possible from an auction's bidders without resorting to shills. On the other side, you're all overthinking the problem of paying as little as possible for an item that's being auctioned.

I don't claim to be wiser, but: http://insight.kellogg.northwestern....lace_your_bids (Note that the article is a bit dated, and the approach of searching for misspelling generally doesn't work as ebay "corrects" common mispellings).

But my approach is somewhat less academic. I decide on what I think is a fair price and list it here or on apug (for photo items obviously). If it doesn't sell, I'll drop the price on those sites and list it on ebay for the original price. If it still doesn't sell, I'll lower the price or put it back in the closet. No drama; if it doesn't sell we'll still be able to eat that week.

The only recent exception was an older brass lens that I couldn't get decent info on. That I listed as a auction. I didn't want to be embarrassed by listing an unrealistic price here.

[CCB]

To me, a lot depends on the confidence I have in the seller. Have I bought from him before? How much experience does she have in evaluating the item's condition. I may even call the seller and talk it over. I've won a few shadow auctions that way.

[Bob Salomon]

The problem with this thread is that a buyer can not determine a reserve. They might be able to discover what the reserve price us but only the seller (or in some auctions, the auction company) can determine what their reserve price will be set.

[StoneNYC]

The problem with this thread is that a buyer can not determine a reserve. They might be able to discover what the reserve price us but only the seller (or in some auctions, the auction company) can determine what their reserve price will be set.

To piggyback this...

The problem with this thread is that the buyer is setting a reserve price that he/she apparently isn't actually satisfied with and then complaining when someone bids just that much and not more. There are systems but people are always going to try to figure them out to the best advantage for themselves (sniping websites come to mind)

If you don't like the price you've set, raise it.

I'm fairly happy when buyers pay my buy-it-now price, I don't complain when they don't offer me more. To me, a reserve is essentially similar, it should be the amount you want for the item, any bids higher than that you should be grateful, it's like a bonus.

[goamules]

Will people who are wiser than I am explain the difference between a reserve set at $x and an opening bid of $x. Either way, the item won't sell unless someone wants to pay at least $x for it. The only difference I can see is that an reserve is invisible and tells me nothing about the least the seller will accept for the item. And then, if I'm willing to pay as much as $y for it I can bid $y and then que sera sera.

I think that you're all, um. overthinking the problem of extracting as much as possible from an auction's bidders without resorting to shills. On the other side, you're all overthinking the problem of paying as little as possible for an item that's being auctioned.

Sure, I'll explain your first question. Human emotion and competition. You could also ask why do live auctions start the bidding at $50, for a $500 item? Because they've learned that if they started at 475, people would not bid. Too expensive, they'd say. But if they start bidding, at $50 or $100, they often feel comitted to the end, and the same person will easily pay more than 500 bucks. So hundreds of years of auctioneering has taught that if you want the best price (we'll discuss that later), you run it this way.

As far as your meta-cognition on seller and buyer motivation, again, it's human nature. When an owner wants to sell a house, car, petzval, bushel of cucumbers, he wants what the market rate is. Very few people are philanthropist enough to just say "I don't really care to get what others are selling their (house, car, etc.) for. I'll let the first person buy it, whatever the cost!" Likewise, when most buyers are shopping for a Christmas gift, they shop around to get the best price for their smartphone, Petzval, jar of pickles. Few say "I don't care that this lens from GoKevin is higher, I just am tired of looking, and want it Now!"

Like I think you said years ago (or maybe it was Jim Galli), we're all Pirates! And we all want to get the booty, win the lottery, or get that great deal on our next car. Its second nature for most people, they're not thinking about it that hard, and they enjoy the chase. That's why.

[Nigel Smith]

Will people who are wiser than I am explain the difference between a reserve set at $x and an opening bid of $x. Either way, the item won't sell unless someone wants to pay at least $x for it. The only difference I can see is that an reserve is invisible and tells me nothing about the least the seller will accept for the item. And then, if I'm willing to pay as much as $y for it I can bid $y and then que sera sera.

I'm not sure but I think someone referred to it above, don't eBay charge based on the starting price of the 'auction' so the cost is cheaper is you start it at 99 cents, regardless if there's a reserve in place.

[Dan Fromm]

Sure, I'll explain your first question. Human emotion and competition. You could also ask why do live auctions start the bidding at $50, for a $500 item? Because they've learned that if they started at 475, people would not bid. Too expensive, they'd say. But if they start bidding, at $50 or $100, they often feel comitted to the end, and the same person will easily pay more than 500 bucks. So hundreds of years of auctioneering has taught that if you want the best price (we'll discuss that later), you run it this way.

Garrett, as far as I know eBay doesn't run live auctions. I b'lieve, can't prove it, that nowadays the smart money (buyer side) sets up a snipe bid and goes to sleep. And there goes all the "fun."

[Dan Fromm]

I'm not sure but I think someone referred to it above, don't eBay charge based on the starting price of the 'auction' so the cost is cheaper is you start it at 99 cents, regardless if there's a reserve in place.

Hmm. Its been a while since I've tried to sell on eBay but when I did there was always a convenient "free listing" sale on. Final value charges are what matters. I always set my opening bid at (the least I'll accept) + (final value charge if the item sells at the opening bid) + (estimated PayPal charges, including on shipping). When the item fails to sell I'm out very little. When it sells I get as least as much, after eBay and PayPal charges, as the least I'll accept.

Starting with an opening bid that's less than I'll accept exposes me to a risk I don't want to take.