Why do people bid below reserve?

Blade

I see in some E-Bay auctions that several people bid below the reserve price. Is that because they are hoping that someone made an error with the reserve and are getting a deal?

BNE

Some people do this to "mark" the auction, so they can return to it later for a snipe. Since there are only so many auctions you can place on your watch list, this is a way to get around that limitation.

sinin1

reserve not met -

Some people bid as much as they are willing to go - the actual reserve price is not known, although some sellers say what they need, etc.

I occasionally do it - if a reserve is way to high I bid as much as I want to go - occasionally if I am high bidder, I get emails from the seller saying they had a reserve price of XXX, but since I was so close, they would sell it to me for XXX. (they are breaking ebay rules, but what the heck)

Sometimes I do it because the seller has a BIN at some ungodly amount for the item (like $500 for something I think is worth $10) so I bid the $10 I would be willing to pay.

This shows in my history and usually stuff like this shows up again in the next month or 2 (and occasionally at a lower price) - the lower price may be more to my liking.

My personal opinion is I wish there were no reserves - but ebay likes getting their dimes - if someone needs $500, why don't they start at $500?

It reminds me of the million dollar nickel - which started at a million ( I thought it was worth about 40cents) - but I am always reminded -buy the coin, not the slab- especially since online auctions have been the dumping ground for DQ (not PQ-premium quality) my term for overgraded/ugly stuff DQ-> dumping quality

prooflike

I agree with you sinin, why can't people just start their auctions at what they want to get for the item. I know they are trying to induce bidding, but if it doesn't hit reserve what does it matter...

mr1931S

the "marking," as BNE says is probably the main reason for bidding below reserve...

i think reserves are kind of ridiculous for these on-line auctions otherwise...

forget reserves...i'd like to see more "buy it nows" staying available longer...

flaminio

<< <i>I see in some E-Bay auctions that several people bid below the reserve price. Is that because they are hoping that someone made an error with the reserve and are getting a deal? >>



Well, you don't always know what the reserve is. I've bid my max on reserve auctions and have had it come back "reserve not met" many times. Oh, well, time to move on then.

nwcs

For me, it's when I have no idea what the reserve is. Personally, I think it's a way for sellers to avoid paying ebay more. They can keep the item, start it real low, and not pay the fees for a higher start price. At least that's my theory. I don' t know how ebay selling works, so I may be wrong.

UncleJoe

They start at lower prices because it works.

Example: I listed three coins one week with opening bids of $24.99 one was an Indian Head cent, one was a 1921 Mercury and the other was a half cent.

All in my opinion were reasonably priced. I did not receive a single bid on any of them.

The next week I relisted them and took a chance with opening bids of $9.99.

They sold for $29., $32. and $30. respectively. I was willing to sell them for $75. the week before but I wound up with $91. because people apparentely enjoy bidding.

If it works, just do it.

Joe.

gmarguli

why can't people just start their auctions at what they want to get for the item.

Because people have trouble being the first person to bid $500 on a coin even if it is worth it. However, they would have no trouble bidding $500 if there were 12 other bidders that ran the coin up from 1¢. It helps them validate their belief that the coin is worth $500.

DrawTwo

People just like to bid. When they have to start high, for whatever reason, like Greg says, they just resist. And to emphsize Joe's point, I've had the same thing happen. Put a coin up with a $225 start - 6 bids ended at $172. Tried again with $200 start (I'm stubborn!) - 8 bids ended at $175. One last time, open bid of $.99 (I'm not that stubborn!) - 18 bids and sold for $228. With a low open, people feel like they're "bidding" with a high start they feel like they're "buying".

ClausUrch

I take the BNE route and low bid to "Mark" the coin. It also comes in handy when it ends up in the "Items I didn't Win" catagory which I use to see the actual selling price of certain types of coins.