Frank wrote:
"The timed auction on eBay has many faults including the last minute bid
scenario if the reserve is known."
Frank as was the case in the email that started all this I think the
potental buyer was looking to see if the reserve price was low enough to
keep his interest. People are curious and if the reserve was reveled they
may not follow or give second thoughts to just how high they might be
willing to go on the item in question. Thus, in some ways it is an
advertising gimic to provoke ones curiosity and at the same time protect the
seller if their minimum is not met. This is likely why the seller comented
about the reason of for not reveling the reserve.
Often ads will encourage you to "place your highest maximum bid." This is
totally to the sellers advantage. Why, because the guy who wants the item
"at any cost" will have to pay a likely higher price. Many people do "Snipe"
(and I will admit I do) at the very end. The buyer is "playing poker" to
bluff any potential bidders. It becomes a battle of getting the lowest
price, highest bid at the very end. Out bid the other guy at the last
second, but not drive up the cost in the final minutes.
Remember the buyer and seller are really advisaries. One is trying to get
the maximum price the other is trying to get the lowest price and still win.
Some complain about sniping, but there really is not much that can be done
at an ebay like auction to prevent it. Thus, it is how the game is played.
And if you want any chance of winning at a reasonable cost sniping is the
only game in town. Personally I enjoy the drama of it all. I like the last
minute contemplation of my all or bust final bid and the calculation of just
when to send it without being late. I have won at least three auctions in
the very last second, often by a few cents. I talk about it for days. I
email links to my friends to show them my "Victory." Of course I have yet to
drive my Tiger of two years so please don't tell me to get a life, hopefully
in a year or two it will roll out of the garage. Tom Witt B9470101
----- Original Message -----
From: "Frank Marrone" <marrone@wco.com>
To: <SLaifman@SoCal.RR.com>
Cc: "Chris J. Richards" <richards@northcoast.com>; <tigers@autox.team.net>
Sent: Sunday, October 28, 2001 11:20 AM
Subject: RE: [Fwd: Question for seller -- Item #597203138]
> Thanks Seteve and others. I now see several reasons why the seller may
want
> to have a hidden reserve, all valid but debatable. Nobody has made a case
> for why revealing the reserve "defeats the purpose" of an auction. That
> assertion was the reason why I asked the original question, I probably
> should have made that clearer. As far as I can tell from the input on
this,
> in it's pure form there are few reasons not to reveal the reserve, it is
for
> other tangential reasons like you mentioned that you keep the reserve
> separate. The best reason I got for concealing the reserve was to
prohibit
> people from waiting until the last minute and then placing a bid at
reserve.
> In this case the seller looses the benefit of a possible bidding frenzy
> initiated by the first bid. Assuming the seller placed his reserve at the
> fair value of the item I have only limited sympathy in this case,
definitely
> some sympathy though.
>
> Basically I understand that the secret reserve protects the seller in
cases
> where the market value is in question. If the object was fairly priced to
> begin with the reserve need not be secret and it protects the seller from
> selling below market. The timed auction on eBay has many faults
including
> the last minute bid scenario if the reserve is known.
>
> Frank
>
> > Frank Marrone wrote:
> > >
> > > No Comment but a question... why does it hurt to reveal the
> > reserve price
> > > in an auction?
> > >
> > > Frank
> >
> > Frank,
> >
> > This is a common practice in the auction business. If the seller has
> > grossly underestimated the fair market value, he may get a view that his
> > offering is not in the higher value condition. On the other hand...
>
> <snip>
>
> >
> > My $.02
> >
> > Steve
> >
> >
> > --
> > Steve Laifman < Find out what is most >
>
> > _/_/_/
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