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 Replies: 16 / Views: 3,526 |
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New Member
Canada
24 Posts |
Quick unofficial opinion poll. I was looking at the 2016 RCNA auction item list and what strikes me is the high starting bids. For example something with an estimated worth of 200$ will start at 100$. I find it a bit discouraging, in the sense that it kind of takes away the excitement of getting a great price on an item. With buyers premium and shipping there's a good chance you end up paying what its worth. Online auctions are less and less interesting in my opinion. Any toughts? |
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Pillar of the Community
Australia
7096 Posts |
The few Australian online auction sites that I have used all start at a dollar and one of them doesn't have a buyers premium either  |
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New Member
 Canada
24 Posts |
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Valued Member
Canada
393 Posts |
That's pretty typical of most auctions for the reserve to start at 50% of the estimate. From the consignor's perspective 'no minimum' is no good. On the other hand Cliffracer, you're right if the starting bid is high, you're not getting a bargain once you add all the other costs. Colonial Acres had such a Mega Mint sale in June with a number of items also starting at $1.  Most of the stuff that sold went cheap. |
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Pillar of the Community
United States
5825 Posts |
If I'm interested in a coin in an auction I:
1) determine what I think it's retail value is
2) determine the buyer's fee and S&H
3) subtract 2) from 1)
4) round 3) down a bit to something between wholesale and retail
5) wait a couple days; I don't want to bid in the heat of the moment
6) place my bid then move on and wait for the results
On occasion I'll bid on an item that would be nice to have but too pricey for me.
I'll bid on it as if the coin were the grade I was looking for.
If I win -- GREAT!
If not -- well, it was worth a try.
I recently put an XF-45 bid in on an AU-58 coin.
I didn't expect to win and I was right -- I didn't.
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New Member
Canada
24 Posts |
I get that with no reserve dealers could stand to lose money, but at the same time the prices realized would reflect the real value collectors are willing to pay?
Quite a few items went unsold at the torex auction.
Anyway wishful thinking on my part!
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Pillar of the Community
Canada
2187 Posts |
I get what you mean. I have stopped myself from bidding before because the minimum was too high (taking in the premiums + S&H). But that was me looking for a good deal. I think usually, if it's a coin I have been looking to buy for a while, I will pay what it is worth ( or close to). I also use the same strategy as kanga
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Pillar of the Community
Canada
3049 Posts |
I'm not exactly sure that I get the issue here... You WANT the auctions to start off at $1? Are you expecting that the item will sell for $1? Are you hoping that you'll just end up getting a really good deal? In my opinion auctions are the perfect setting to say what the price is for an item. We all have collections, we all buy coins and at some point we'll all probably liquidate our coins or they'll be liquidated for us as part of our estates. Would we want our collections selling for $1 a piece then? I just don't see how you could want it both ways... A minimum starting bid not only protects the seller... but it also protects us and our collections. On bigger ticket items I would also say it does protect a certain type of buyer as well.... I do remember a time when I was just starting to collect and I saw an item that had (what I felt at the time a high book value of $200) The starting bid was $5. Now at that time I don't think I would've paid much more than $30 for a coin. Well auction fever hit and I ended up bidding north of $110 before I backed out. Now the item sold for $120... But I was in a position and mindset not to spend that much for a coin and here I almost spent 4x what I would on a coin. Sure one could argue that a low starting bid will bring in more customers, but I would also ask at what cost? Have you ever paid more than you wanted for an item, and how did that make you feel? I would also argue that a higher starting bid will also mean that those attracted to bidding on said item understand the costs and are at a level they're still willing to pay. In my example what if I had won the auction, but then backed out of the payment? How does this leave the auctioneer, as well as the cosigner? A higher minimum start does separate the wheat from the chaff, which in this industry may not be a bad thing as well.. for all parties... Just my Two Cents |
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New Member
Canada
24 Posts |
No I'm in no way expecting things to sell for a dollar... What I was saying is I think the starting prices are too high and don't allow any room to actually have a bid war and not go over retail once all fees are taken into account.
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Valued Member
Canada
393 Posts |
Quote:
A minimum starting bid not only protects the seller... but it also protects us and our collections Quote:
I just don't see how you could want it both ways  The $1 starting bids are just a red herring to get some activity happening. In many cases the final bid ends up close to retail anyways. Edited by Proof Nut
07/09/2016 4:47 pm
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Pillar of the Community
Canada
5238 Posts |
@Cliffracer, starting at 1/2 estimate seems quite reasonable in my opinion. As I recall, 90% or more of the bell auction items (Torex) sold, in many cases at or above the estimate. So starting at $1 is really irrelevant in most cases. It seems like it is wasting everyone's time to start an auction at $1 if you know very well it will likely go for at least 1/2.
Also, I for one would not want a valuable item of mine to sell for $1 just because of some weird fluke, unlikely though it may be. I think we have to have reasonable expectations for auctions.
Those 10% of the items that did not sell, maybe they will be sold at a discount later, maybe not.
Edited by oriole
07/09/2016 5:19 pm
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Pillar of the Community
Canada
4227 Posts |
Quote:
As I recall, 90% or more of the bell auction items (Torex) sold They don't do Torex - they are with the Toronto Coin Expo. |
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Pillar of the Community
Canada
2495 Posts |
For a true auction, these 50% of trends starting prices are a joke.
Add the buyer's fees and taxes and you might as well go to Birks or Tiffanys to buy your coins.
And as far as these sales actually selling 90% of the lots...yeah, tell me another one.
Most of the time it's just an 'internal' sale (most likely another dealer) and is not a true sale.
There's plenty of 'creative selling' going on in the auction world.
Edited by doubleeagle59
07/09/2016 10:30 pm
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Moderator
 Canada
10456 Posts |
I usually don't chase stuff in auctions, unless I really want it... then, all the above is irrelevant...
"Discovery follows discovery, each both raising and answering questions, each ending a long search, and each providing the new instruments for a new search." -- J. Robert OppenheimerContent of this post is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License. See: http://creativecommons.org/licenses...0/deed.en_USMy eBay store
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Pillar of the Community
Canada
2845 Posts |
Most auctions, including those that make online bidding available, are still live auctions. I think a $1 starting price would unnecessarily drag out the auction because more time would have to be spent auctioning each item. 50% of estimated value is a reasonable starting point.
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Pillar of the Community
Australia
7096 Posts |
Quote:
Most auctions, including those that make online bidding available, are still live auctions. I think a $1 starting price would unnecessarily drag out the auction because more time would have to be spent auctioning each item. 50% of estimated value is a reasonable starting point. It can be a real "Pain" waiting for all the Penny Ante bidders to finish messing about before you can place a real bid sometimes. |
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Replies: 16 / Views: 3,526 |
Posted 07/09/2016 09:32 am
