High reserve versus high starting bid

GetSiriusNow

Let's say you need to sell a card for $500 to make a profit. Do you guys think it is better to start the bid low and have a reserve of $500 or just start the auction with a $500 starting bid. It seems like really low initial priced cards get lost in the shuffle and go unnoticed at times and may take too long to build up to a price where the bigger bidders would notice it. On the other hand, having a lower starting bid could allow more people to get caught up in the bidding war and bring in more potential buyers as the auction heats up. Which method do you think works better?

Stone193

This is a good question.

I don't sell on ebay but many have given their input on this subject.

Unless you are worried about the occasional slipup, a low starting bid will get the most bidding attention and if the item is worthy, many will be setting their snipes.

IMO, rarely do good items go for a 'song.'

mike

5STAT

You're better off starting it at 99 cents with a $500 reserve. Let the card build interest.
Most people want to be able to name their price for the card...they feel more in control that way.
By listing it at $500, it's going to cost you more to list it...and you tend to scare away the people with such a high price.
You'll see watchers at that price...but unless someone really really wants it..you may scare away potential bidders.

I recently sold a box of 1961 Nu-Scoops baseball....I knew it would sell well....so listed it for 99 cents with a reserve of $995. It ended at $1300+

If the card is worth the $500...you should get it...if not, you'll know what the buyers are willing to pay. If even close to the $500, you may be able to work something out.

WinPitcher

I agree. Unless you are a known dealer and have a following I would use the reserve format. That way your item will not be lost for a song and you will also see what the market would bare.

JMO


SD

Boopotts

One other thing I would recommend would be to list the amount of the reserve in the auction description.

Engineer

I don't bid in many auctions with reserves unless it is an item I really want. Adam B.

dgbaseball

The way I see it, if you need to sell for $500 to make a profit and you can't, then you screwed up buying the card in the first place. I don't see any sense in spending extra money on a reserve or high starting price to hope to cover that up. In the end (like you suggested) I've found it much more valuable to have a low starting point, more bidders, more watchers, more interest etc.

I think reserve auctions on ebay are a marketing scam. Sellers use them to find out how much they can get for the auction, then either relist starting at the highest price or offer second chance offers. Buyers usually only bid on "Reserve Not Met" auctions to get themselves on the bid list, in order to send e-mails offering to buy after the auction ends below the reserve, and to get any second chance offer. All the while ebay takes in more fees.

On ebay, you're auctioning an item, and you're going to get what someone wants to pay. That's all. Ebay offers you so many different schemes to make you think you can possibly get more money if you do this, or pay an extra dime for that, but in the end, you get what someone wants to pay. And more important than anything else in getting your target price is timing. In fact, nothing else really matters - You've got to have your auction up when that one guy who really wants your item is on looking for it. Or better yet, the two guys who really want it. A lot of that can be managed, but obviously it's mostly just luck.

Quick story to that end:

I had a card (1951 Bowman Feller PSA 7). Beautiful card. Somehow managed to buy it for $120. Tried to flip it starting an auction at $175. No takers. Relisted at $150. No takers. Relisted at $125, no takers. Relisted at $99, one quick bid, then another to $110, then in the last minute of the auction, two guys sniped it up to $192. It's all about the timing. And I believe the results would've been the same had I just started at $9.99 the first time, without the high starting price insertion fees and relisting fees (after the first free one). I know it's unnerving to start a valuable card at $9.99 or something, but as popular as ebay has become, with all the sniping, your card will go for the "right' price, and the extra low bidding will only help the auction. An auction with lots of bids looks good too.

Knuckles

I always feel queezy doing this for items worth so much but 9 times out of 10 I end up being more than happy with the end result. I actually just listed a nice game worn oilers jersey with a starting bid of $1...

NBAFan

<< <i>You're better off starting it at 99 cents with a $500 reserve. Let the card build interest.
Most people want to be able to name their price for the card...they feel more in control that way.
By listing it at $500, it's going to cost you more to list it... >>



Actually it costs more to list it with a reserve.

You list it at $500 no reserve it will cost you the starting value price to list it at $500

You list it at $.99 with a $500 reserve, you will have to pay for a starting value of $500 plus the reserve fee cost which you get back if it sells.

GetSiriusNow

I appreciate your input. It seems most everyone thinks a low starting bid is the way to go.

Thulnanth

Hey all,

Bucking the trend, I really don't care for reserve auctions - if you have a minimum amount that you must get for an item, then start your auction at that price. A high opening bid does not stop me from bidding unless it's more than I want to pay; on the other hand a high reserve will more likely get me to "watch" and see what it is. In addition, I've lost auctions as the high bidder without meeting the reserve - frustrating when you don't know what the seller even wanted for it. In the end, I usually have a price I'm willing to pay and that's what I bid, reserve or no - I just like to know what my chances are .

Take it easy,
Jared

phreakydancin

I read somewhere that eBay auctions with high min bids instead of reserves actually do better, and I would be inclined to agree. Personally I can't stand reserve auctions and will rarely bid in one, and I'm sure a lot of other bidders feel the same way.