# Auctions and "reserves"

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#### TWRackers

##### Well-Known Member
Well, I just did my first two auctions ever, in this case over on Rocketry Planet. When setting them up, I had to set a starting bid for each, and I also set a reserve price which is optional. I know HOW the reserve price works, but what I'd like to know is WHY is there such a thing? If the reserve price is the minimum the seller will accept, why don't sellers just set the starting bid at that point?

woo-hoo! My post count is double digits now!

#### Gillard

##### Well-Known Member
logically - i don't get it either, just start the bidding at the reserve price, but i guess that the low starting bids attract people into your auction, they might have been put off by a higher starting price. so I guess its putting bait on a hook.

#### kelltym88

##### Well-Known Member
Speaking from personal experience, I know that if I've had an item that perhaps I really didn't want to sell, or wanted to make sure that I got what I felt I should get for it, then I set a reserve price. That was on ebay.

##### Roger Smith
As a buyer, I never bid on auctions with a "reserve." It's annoying to place a bid on something and have eBay come back and tell you that your bid is below the reserve. It also implies that the seller has something to hide - not a good sign in a business relationship.

-- Roger

#### H_Rocket

##### Death by Powerpoint
If there is a reserve. I place one bid, if it is below the reserve I will not place another. I don't have any desire to play "guess how much I want for this thing I found in my basement". Use a minimum bid price, or simply say in the text what you want.

#### kandsrockets

##### Well-Known Member
I hate reserve auctions. Just start the bid at what the lowest you are willing to sell it at or just make it a buy now only auction and put what you want for it. Why play guessing games on what you want for it.

#### Peartree

Staff member
Global Mod
I also will place a single bid in a reserve auction but I understand why reserves exist. It's a psychological thing. I have been to real live auctions where the auctioneer knew the value of the thing for sale. He tried starting the bidding near the actual value - no bids. Then tried again at about half the expected value - no bids. Then finally gave up and started bidding at some ridiculous number like $1. Bidding started and was enthusiastic and finished well in excess of where he tried to start the first time. I guess that way the bidders were sure they weren't starting too high and getting ripped off? #### luke strawwalker ##### Well-Known Member I also will place a single bid in a reserve auction but I understand why reserves exist. It's a psychological thing. I have been to real live auctions where the auctioneer knew the value of the thing for sale. He tried starting the bidding near the actual value - no bids. Then tried again at about half the expected value - no bids. Then finally gave up and started bidding at some ridiculous number like$1. Bidding started and was enthusiastic and finished well in excess of where he tried to start the first time. I guess that way the bidders were sure they weren't starting too high and getting ripped off?
Oh yeah... Hehehe... farm equipment auctions are pretty fun... One thing I've learned is to go look at everything that remotely interests you and then formulate "how much you're willing to pay" before hand, and pretty well stick to it.

-- Roger

#### cydermaster

##### Well-Known Member
As to ebay auctions in particular, my use of ebay has dropped to about nil. It is now full of plain old retailers trying to sell their wares at (or above) full retail prices. There are very few 'deals' left.
Good point and very true in many cases but I still manage to get the odd 360 game off there 2nd hand for less than half the price - its just a case of bidding low and often ... you only have to be lucky once!