What is the purpose of starting a bid below reserve?

Tade

I noticed a coin that the seller set the minimum bid at $49.00, it is now over $200 and the reserve is not met.

What is the purpose of that? He had 14 bids and I'm sure none are continuing to play his crap game of
"What's my reserve". I tried twice, and just moved on.

Another had the same low start ($25.00), no indication of what his reserve that he wanted except a lot of "not met"s, and a Buy Now at $9000.

When I buy a coin, I don't want nor need to be part of build my bid numbers.

Tade

greghansen

It irritates me too. I know by setting the opening bid below the reserve, the seller only pays listing fees on the value of the opening bid...so some sellers try to save a little money that way. Questionable whether the small amount the save is worth the frustration for those of us 'bidding in the blind' not knowing what it is going to take to own the coin.

RKKay

My initial thought is that they do it because they think that, if the price starts low, people will start bdding, which would generate momentum to carry it through the reserve price. Sort of like selling a house and setting the price a little low to get multiples. I don't sell on eBay, but that's my gut.

BillJones

Your right RKKay,

The idea is get people bidding so that they will get "auction fever" and perhaps overpay for something. The trouble it's hard to catch auction fever when you are bidding against a reserve and not against a live person.

jbsteven

when I sell on ebay and put a 9.99 opening bid it saves me roughly 2.00 per listing which is then given back to Ebay for the reserve auction fee. it seems people are more likely to bid in an auction that starts at 9.99 compared to $150.00 as the opening bid. Alot of people do not want to be the first bidder when the opening bid is what the seller wants for the coin.

I have found that I get better prices for auctions that have a reserve with a opening bid of 9.99 compared to having the amount I want for the item as the opening bid.

wallstreetman

You lose a lot of potential bids when you set a reserve! Start the auction at your bottom price with no reserve.

kieferscoins

It also allows the bidders to watch the item with a bid in hopes that they will bid more rather than the normal 20 items they can watch and delete at will.

Cameron Kiefer

Outhaul

I echo Cam's thoughts here. I like a reserve auction because it allows me to place a low bid to keep an eye on the item. We are only allowed 30 watch items and I usually have that maxed out.

On the other hand, I've tried doing a "no reserve" auction and got blistered! I let a classic commem go for less than half its value. I was waiting thinking that there was going to be a flurry of bids in the final moments but it didn't happen. Not that it wasn't a desireable coin (1920 Pilgrim PCGS MS-64) just bad timing I guess. Anyway, that's why I use a reserve now.

Cheers,

Bob

maddox

Placing a coin up for auction with a reserve is simply an insurance policy for the seller, also setting the opening bid low allows ebayers the thrill of bidding, heck half the fun of auctions is bidding.

CarlWohlforth

Reserves are necessary for some coins as they are thinly traded. The two potential bidders needed for a good auction might not be looking that week. (or they might be watching the Super Bowl )

A low starting bid and a high reserve will only save listing fees if the coin actually reaches reserve and is sold. This is because eBay charges a "reserve fee". They keep the reserve fee if the coin doesn't sell, they return it if the coin does sell.

A high starting bid is sometimes seen as a retail sale. Often people won't bid on something because they are not really sure what they should pay. If someone else is willing to pay $XXX it encourages them to pay $XXX + 1 because they know somebody else thinks the coin is worth $XXX.

Also a seller might not know what the coin is worth. If the coin fails to reach reserve the seller at least learns what the high bid is.

Since I want to actually sell the coin I try to keep my reserves as low as I can stand...

dlshaw

I usually start everthing @ 9.99 and no reserver. Lately I had some nicer coins and used a buy it now with a reasonable start price. For example: I started a 2002 1/10 Platinum at $100 and buy it now for $125. THe bidding started at $100 ( where the buy it now disappeared) and I sold it for $125.06
I alwasys try to start any buy it nows with a reasonable start bid or at least below greysheet price. Yes it cost me an extra $2.05 doing it that way.
With most Items starting at $9.99 I usually get my cost at least, losing on very few.
One of the Keys is ending time.