How to price your item
When possible, I try to start all of my auctions at $9.99. People like to see that there is a chance that they may win something for less than $10. Also, your ebay fees increase incrementally as your starting price goes up. Over the years I have learned that it is only the rare occasion that something will sell for the original $9.99. You may start to fret when your auction only has six hours left and the item is still at $9.99, but not to worry. A good percentage of bidding happens during the last ten minutes of an auction’s life.
Should you list a reserve? My experience has always been, whenever possible, to avoid listing a reserve. Bidders tend to lose interest in items they perceive as unattainable. Also, once again, ebay is going to charge you extra to list a reserve. It never failed on the times when I posted a reserve that within the first few days I would receive an email inquiring what my reserve was. Does that not defeat the purpose of the reserve? My alternative recommendation is to just start the item at the minimun price you would want to get, and still be happy. Don’t forget to factor in Final Auction Value fees and Paypal fees, if any apply to you.
Last, low opening bids make an auction fun. I used to see sellers print “Bid early and bid often!” as if this would make people want to bid. Start low-makes it fun for your bidders and you get to see green on your screen. Always a good sight.
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Good morning Texas Tracy! I thought I’d drop a line or two in response to this posting about eBay and pricing. I have a moderate amount of eBay experience both as a seller and a buyer. I have made over 500 transactions in the past three years. I buy more than I sell from eBay. I have a particular interest in one particular area. I am a collector and sometime seller of antique telephones. I watch listings constantly. eBay is my HOME page. I’m retired and have time to devote to watching and keeping track of items being offered for sale. By now I know certain sellers, detect patterns and fully understand the system as it relates to antique telephones (and most items).
I agree with your assessment of listing a low starting price. As you indicate people want to think they are getting a good deal and often one CAN get a good deal. There is some feeling of excitement when the bidding draws to an end when one is still in the hunt for the item. It is not unlike a compulsion one has that plays a slot machine or some other form of quick-paced gambling. There is always the chance of “winning”. Even eBay uses the phrase “You Won!” I have seen items that I know are in the $100 value range start at 9.99 (or less) and climb to well over the $100 value. If one were to take the same item and start the bidding at $100 or put a Reserve price at $100 it may get no action at all. However the need for a Reserve price is necessary sometimes when a seller has an investment in the item and can’t let it sell below the investment. On the other hand I have seen a couple sellers that have a reputation for quality sell an item, in this case an antique telephone with a starting price of .99 cents and know that it will fetch the price that the seller commands—often over $1,000!
You are also correct (in my opinion) about the final sale price of an item jumping in the final minutes of the auction. I have witnessed items at $9.99 jump to $500 or higher in the last 10 seconds of the auction. It happens. Another fascination to me is when two “rookies” are bidding on the same item. You can see two items in the same category, nearly identical items and one will sell high and one will not. Most of the time the reason for this is two or more rookies begin to fight over the item. And they will begin their bidding war on day one of a seven day auction. A seller’s dream is to have what I call rookies (buyers with low feedback score and thus low experience) trying to outbid each other on an item. I have seen “0″ and/or under “10″ feedback drive the price of an item up way beyond its value. If only they would look around for a similar item they could save money and get a similar, if not better item. It happens all day long.
I have both asked and been asked about my Reserve price. I had an item newly listed and shortly there after I was asked for my Reserve price. I told the person and he/she immediately bid the reserve price. I have also asked for a “ball park” Reserve price just to give me an idea of where it was going to go. People often reveal their Reserve price if asked.
Many buyers like a Buy It Now because they don’t have time to “Watch” an item for seven or ten days only to lose it at the last minute. I have had much success with Buy It Now’s, especially at Christmas time—in the final two weeks when last minute shoppers want their items in time for the holiday. But as a seller a Buy It Now price can be risky in that the seller may be cheating him/herself out of a higher final sale price.
I haven’t read your whole blog (yet) so many of my comments may be covered in other postings. So I will do that. Buyer/Seller Feedback is another interesting topic…….
Thanks for the opportunity to share my views!
Hello Dennis! Thanks for the comment. You know, you bring up a good point, and one that I think deserves some further discussion. You stated, “On the other hand I have seen a couple sellers that have a reputation for quality sell an item, in this case an antique telephone with a starting price of .99 cents and know that it will fetch the price that the seller commands—often over $1,000!”. I need to remember that not all ebayers have the years of experience and feedback that I have. As a result, it may be prudent for a seller to set a reserve. Just remember to buy wisely, or you may wind up keeping what you had originally intended to sell. This being said, I still love the idea of a no reserve auction, with a low starting bid price. If I am the bidder, there is always the chance I just may win…