Starting bid vs. reserve price

Discussion in 'General Business' started by Matt18, Jan 2, 2010.

  1. #1
    Hi

    I have a question... What is the point of setting a starting BID at 100 and reserve at 650?

    I mean WTF? Any bidding bellow 650 is just stupid so why would anyone bid bellow reserve price? And if noone would, why not setting starting BID and reserve price the same ammount?

    Thank for all the explinations :)
     
    Matt18, Jan 2, 2010 IP
  2. dlanor

    dlanor Peon

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    #2
    Starting bid helps to increase the interest of potential buyers and attract bids. High reserve price will discourage buyers to bid, so a starting bid may help.

    Imagine if there are 10 people bidding when you set a low starting bid, there will be more interested bidders to look at your auction item vs 2 people bidding at reserved price.
     
    dlanor, Jan 2, 2010 IP
  3. dlprentice

    dlprentice Well-Known Member

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    #3
    The reserve is like a fail safe. If the reserve is not met or exceeded you keep your item, and don't get ripped off.
     
    dlprentice, Jan 2, 2010 IP
  4. Matt18

    Matt18 Guest

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    #4
    well yeah, all good... from the point of sellers view...

    but if I was the buyer, there are two options:

    1. I am not willing to pay the reserve price
    THEN I DON'T BID AT ALL!

    2. I am willing to pay the reserve price
    THEN I START BIDDING WITH THE RESERVE PRICE...

    It' just dumb :S
     
    Matt18, Jan 3, 2010 IP
  5. Safetyfirst

    Safetyfirst Active Member

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    #5
    Yup its not much useful , its just that many people get interested if the minimum bid is low , maybe then it will attract the big buyers looking at the bidding activity.
     
    Safetyfirst, Jan 3, 2010 IP
  6. mentos

    mentos Prominent Member

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    #6
    At the first place,the bidder don't have any idea about what is the reserve price,that why they bid it.
    And chances are some bidder is not actually bid the item,but more to the fun part of bidding.
     
    mentos, Jan 3, 2010 IP
  7. Matt18

    Matt18 Guest

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    #7
    well ok... that makes sense... :D lol
     
    Matt18, Jan 3, 2010 IP
  8. zntow2000

    zntow2000 Member

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    #8
    I have to agree, since they don't know what the reserve is the lower minimum helps attract bids.

    If you really have balls just run your auction with no reserve and take your chances with the market........
     
    zntow2000, Jan 17, 2010 IP