Why do people set reserves?

MrsE_2

Why do people set reserves?

Why don't they just have a starting price?

I don't understand the whole reserve thing anyhow.

If I bid more than the other bidders but less than the reserve I don't get it, but if I bid more than the reserve but the other bidders don't push me that high, I still don't get it? Or does my bid automatically go to the reserve price upon auction end?

I was just watching something on ebay, was about £150 & a reserve on it.
It was worth about £300 tops.
I emailed asking the reserve, but they didn't get back to me.
I didn't bid.
Just checked it, the bidding finished at £220. I guess that means they haven't sold?
But if they had a starting price of £300, then people might have offered that.......

Alika_2

I do it to give the impression that it is cheaper than it really is

for example if an items worth £150 and would cost me £5 to post, putting it on for £150 buy it now with £5 post means I'm not anywhere near the bottom of the list when people search by lowest first or lowest first (price & postage). If I put it on for 99p and £5 postage, it means it displays under everything which is more than £6.99.
I also find you tend to get a lot more bidders as people think the item is worth a lot more and want to find out what your reserve is. if this happens ealier on in the listing, then it means that the ending price is most likely higher. It gives the chance for people to have a bidding war with each other, and then wait til its about to end and have another one.

Im not really sure about whether it automatically goes up to the reserve price if you put in a higher maximum bid.. I would persume it does not. But I've never actually bid on reserves myself.. I always buy expenisve stuff new (I don't have much luck with expensive items.. So far I've returned 3 treadmills and 2 phones this year T_T all broke within a few days or came broken.. eek)

grapefruitandmango

simple they dont want too sell you the item for peanuts

soolin

If I bid more than the other bidders but less than the reserve I don't get it, but if I bid more than the reserve but the other bidders don't push me that high, I still don't get it? Or does my bid automatically go to the reserve price upon auction end?

As long as your bid is above the reserve then you will win the item even if no one else bids.

hermum

I sold something once with a reserve & from what I can remember I set it at £250 there were lots of bids on it but nowhere near the asking price & in the last seconds it went up to my reserve but I think there was a huge gap between him & the under bidder. So I am pretty sure that as long as you get 1 bid higher than the reserve it will sell for your reserve price.
That was a long time ago & I wouldn't use a reserve price now.
I've never bid on anything with a reserve.

MrsE_2

grapefruitandmango wrote: »

simple they dont want too sell you the item for peanuts

I think a starting price is clearer & more bidder friendly.

custardy

MrsE wrote: »

I think a starting price is clearer & more bidder friendly.

some bidders will look at a £150 item and dismiss it as too expensive
however if they get into bidding on it,they may bid higher when caught up in the bidding

soolin

custardy wrote: »

some bidders will look at a £150 item and dismiss it as too expensive
however if they get into bidding on it,they may bid higher when caught up in the bidding

Ah yes bidding frenzy, been there done that and have lugged home a van load of things from an auction house to prove it!

mandragora_2

I won't bid on items with a reserve on ebay - I'm not interested in a guessing game. Tell me what the very lowest you'll accept it, and we can take it from there. Its frustrating to bid on an electronic auction and just keep being told 'reserve not met'. There's too much competition on ebay to risk messing buyers around like that. If it's special, and worth the lowest price you'll accept, then people will see it, want it and bid on it.

MrsE_2

mandragora wrote: »

I won't bid on items with a reserve on ebay - I'm not interested in a guessing game. Tell me what the very lowest you'll accept it, and we can take it from there. Its frustrating to bid on an electronic auction and just keep being told 'reserve not met'. There's too much competition on ebay to risk messing buyers around like that. If it's special, and worth the lowest price you'll accept, then people will see it, want it and bid on it.

Very true, I don't bother with them.
Had it had a £300 starting price, I may have had a punt & they may have had a sale.