Steve,
Paul is exactly right: there is some element of human psychology present
in an auction that defies common sense.
The latest example I've seen involves a certain model Snap-On wrench
commonly seen on ebay. I've seen 10 start at 9.99 and bidding will go
to $260, $275 and even a little higher before the gavel comes down.
Then a guy listed a pristine example of the exact same wrench for a
Buy-It-Now price of $250 AND INCLUDED SHIPPING. The auction ended
without a bid. Explain that.
The same applies to higher price items, too. Crazy, but it works.
Pete in PA
From: "Steve B." <imperial59@xxxxxxxxxxxxxxx>
Subject: RE: IML: Selling My 63 Crown Convertible - How can I find what
it is worth?
Date: Mon, 8 Mar 2004 18:59:55 -0500
Reply-To: mailing-list@xxxxxxxxxxxxxxxx
Placing a high reserve will often discourage bids, while allowing the
bidding to set the market will often result in a selling price that is
higher than expected.
Paul
Why would a high reserve discourage bidders? One doesn't even know if
their bid is going to meet the reserve until after they have made the
bid. I have found that you have the best luck starting the opening bid
somewhere low (couple thousand) and set a reserve that you can live
with.
Back to the Home of the Forward Look Network