Auction Question?

[James]

I have a question that maybe someone can answer. In the Auction, not only here but Ebay as well, people put something up, they give a starting bid price, a Buy it Now Price, then put a Reserve price on it.

Now the Reserve bid price is fine, but if only one person bids on this item, even if they bid higher than what the reserve price might be, the software enters the starting bid price and will NOT increment it up unless someone else bids. So what is the advantage of putting a low bid price on something with a higher reserve price? Why not just put the starting bid price what the reserve price might be, at least that way if just one person decides to bid on it, it will sell.

[Melody]

The software bids for you and that's what it's designed for, so I suppose it doesn't factor in the reserve price. Aquabid is the same way. The idea of a reserve price is you are then able to make your starting price lower to get the bidding going.

I usually don't bother with a reserve price and opt for a minimum bid, although I have used a reserve price before. I use one or the other because as it is I make nothing if I factor in the supplies and time required to ship something. Its not worth it for me to sell something just because its for sale. Anything under a $15 sale I'm shipping out of the kindness of my heart - there's no money in anything that low if you ship because its a big hassle and the supplies are expensive. Factor in what it costs to raise the buggers and nobody would bother selling at all :laugh: .

It would be nice if the software would bump up a bid to hit the reserve price if your max covered it. Jay would be the one who would know if its possible. Good point!

[James]

I understand what you mean about not making anything on what the price is.

But what I am asking is why put a reserve price in and then have a lower starting price? As I said before, if only one person bids on it,,there is no way the item will sell. Why not either make the starting bid the same price as you would the reserve?

I see this being done all the time in Ebay, and there it cost money to put the item on, not sure about here. Its something I just can't get my head around, putting something on an auction where if only one person wants to bid on it, they can not get it.

[Melody]

Because the lower starting price gets the bidding going, which usually will go higher than the reserve in the end. A person's first inclination is to not bid if they think the starting price is too high, but if they're already bidding they will go higher, statistically.

The feature lacks functionality, I agree, but the logic behind a reserve price is sound. It's the system that is missing a link.

You can always buy it outright and get it overwith....lol.

[CACAdmin]

It's based on the assumption that with a low starting bid that there will be more than one bidder and as Melody said an initial low bid is what gets the bidding started.

If the software immediately assumed it should bump your initial bid to meet the reserve price, that would defeat the point of a low starting bid.

[CACAdmin]

I hope you don't mind. I updated the title of this section to include Auction questions and moved your thread here as it may serve to answer the same question for others.

[CACAdmin]

I see this being done all the time in Ebay, and there it cost money to put the item on, not sure about here.


Just to clarify things, it costs nothing to list an item on the CAC Auction. Info here (http://www.canadianaquariumconnection.com/ClassAuction/index.php?a=28&b=143).