Reserve Prices

I bid without regard to a Reserve since, like SE, I always bid my best the first time and walk away if it isn't enough. As a seller, I've had so-so luck with Reserves, but will use them again in the future to protect my investment. Indeed, there are situations where it might appear attractive to a buyer to see a coin thought worthy of a Reserve, especially from a reputable seller.

I usually ignore auctions with reserves unless it's a coin that I just can't live without (read: I'll pay stupid money to get it!!!) but as a seller (not much in coins yet) I do not use reserves. I tried it, and got very few bidders, even fewer "watchers" and rarely got bids up to the amount of my reserve. That made me change my selling strategy on PayBay. I have listed many items of stuff I used to collect, some quite valuable, some not, and since I started all of the auctions at $0.99 with no reserves, I got a lot of action, lots of bidders, watchers, and questions from overseas buyers. I also got more money than I expected on most of those items, less on some others, but it all evens out in the end.

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What are your thoughts on Reserve prices? Do you bid on items with a reserve?

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I don't understand the term 'reserve prices'. Please explain. Thanks.

As a bidder, I avoid auctions with reserve...
I assume the seller is trying to catch a whale or does not trust the value of the coin. I see too many not sell.

Best way to make a good profit is to get many bidders (some of which become emotionally attached).

Let's talk about reserves...

You have a coin that you want $500 for, that doesn't sell, lets look at the fees...

Open the bidding at .01 with a $500 reserve...

Insertion fee $4.80
Reserve fee   $5.00
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Total         $9.80

Open the bidding at $500, no reserve...

Insertion fee $4.80
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Total         $4.80

So let's review, both scenarios accomplish the exact same thing, your coin won't be sold for under $500.

But, if you used a reserve, you've just given Meg a $5 bonus for failing to find you a buyer.

Why people use reserves is beyond me, it's ebay's biggest scam. If you're afraid to start it low and let it run, just start the bidding in your comfort zone and keep some of your money. Meg doesn't need it, she's in her hot tub earning 20%.

Reserves are a huge money maker for ebay. They don't want reserve auctions to sell, and they usually don't. When they don't sell, they get to keep the fees, and the seller will usually relist it anyway, so they get even more money.

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True auction format is to list the item with no reserve and a low starting bid and let the coin sell itself

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I've been waiting a long time to ask this question:

Why is starting an auction at $0.99 a true auction? What makes that starting price any more of a true auction then starting at $25? Or $2500? And why not 1 cent?

I've been to live auctions and it would be a complete waste of everyone's time to start every item at 99 cents. I'm sure Lloyd's and Sotheby's concurr.

Just something that's been sticking in my craw.

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True auction format is to list the item with no reserve and a low starting bid and let the coin sell itself

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I've been waiting a long time to ask this question:

Why is starting an auction at $0.99 a true auction? What makes that starting price any more of a true auction then starting at $25? Or $2500? And why not 1 cent?

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I used to go to a lot of Brick and Mortar estate type auctions. I never heard the term "True auction" there. I've only ever heard it associated with ebay. You hear the term "Absolute" auctions a lot at B&M houses. An absolute auction means the item has no reserve, and will sell at any price, even a penny. States have different rules. In some states, the seller can bid and buy back his item. In my state, the auctioneer and his employees can bid on items, so nothing good will EVER sell for a penny.

There are many-many styles of auctions. The style that ebay uses, being the highest bid at the end of a time frame was not invented by them. It's just as old, and as valid as the typical auction you think of with buyers holding up cards and screaming out prices. I go to one auction house that NEVER uses a reserve, they start the bidding at the minimum the seller agrees to let something go for. If it gets no bids, it goes back to the seller. Another place almost next door uses reserves. They don't tell you there is a reserve. If bidding does no exceed the reserve, the auctioneer announces the reserve, and asks for bids. If no one exceeds the reserve, it goes back to the seller.

Bottom line, there are a multitude of auction formats, all of which are valid. I'm not sure if the term "True" auction is a valid descriptor, or just slang from ebay users.

Reserve prices are only good if they are low.