Baffled by Pricing Strategy

FYI: Once you list on AudiogoN you can’t change the listing to a higher price. Lowering the price is fine. I don't how it works on other sites!

I've seen watched items on other forums raise their price often.  I can see 2 reasons:  1.  New model has significant price increase.  this had raised used prices on autos consistently.  2.  so they can lower it again in the future.

I have also witnessed this phenomenon on other sites.  One in particular, is an amp that has been for sale for about a year,and the price goes up and down about a grand. I don’t get it,but hey, who am I? 

I noticed on Ebay that if I lower my price, I lose a watcher or two! It's happened many a time...figure that out! I've often raised my price back up, only to gain watchers! Lol, people are freaking weird. Sone of those same items eventually sold, at the higher price....

Possible strategy to deter low ballers and tire kickers.
I’ve not had one occasion where I wouldn’t accept a fair offer or my fair offer would be rejected by the seller irrespective of asking price.

I’ve raised a price on an item, typically within one hour of posting if I feel I listed it too low. 

I’m not sure what others’ strategies are, but I can see a few reasons:

1. At the time of listing, there are perhaps other similar listings that are priced lower. If they all sell and only one is left, perhaps the seller thinks they can make more money since there isn’t any more competition. 

2. If it is a current model, perhaps manufacturers recently increased the retail price, making the used price also go up. 

Maybe believers in the fallacy that more expensive products are better. Kind of like some companies won't allow their stuff to be "on sale" because it supposedly cheapens the brand.

@brewerslaw

I’ve been baffled by audio gear pricing for years, so you are not alone. I have no doubt that some (or many) listings are because a spouse has demanded to "get rid of all your extra junk not being used". Sellers post an item at a ridiculous price, knowing it won’t sell at that price and not even entertaining fair offers, just so they can say, "I tried selling it, Honey!".

I posed a question in a post a while back regarding a turntable that must have been listed 4 or 5 times over a year. The price never changed and I asked at least 6 questions that went unanswered. Same with a Sota table I’ve seen listed for what seems like a year -- without a change in the $1,500 asking price. Tell me you don’t want to sell something without telling me you don’t want to sell something. LOL!

Also, you’ll find Audiophiles have a "overly optimistic" opinion of what used 5 to 10 year gear is worth. While post-pandemic isn’t the best example to use, but in "normal years", buy a new automobile at the dealer, drive it off the lot, and bring it back 6 months later to resale. You think you’re going to get 80% or more of the original purchase price back? Again, discount the current bizarre 2 year period we’ve seen -- car inventory will bounce back to normal levels within the next 2 years.

Good luck on the purchase attempts.  I hope you have better luck than I've had.  My best purchases this year have been through building Social Media relationships.  I've purchased a pristine Audio Research SP17 with phono stage for $1,200; a McIntosh MC-225 built in 1963 that is nearly flawless with original McIntosh branded tubes-- just a little lettering on the "Spec Edge" is rubbed off -- for $2,500; and a mint condition Dennis Had Inspire 45 Fire Bottle amp and LP3.1 preamp with new Emission Labs tubes for $2,200.

Maybe they really don’t care if it sells or not. And if they can get the higher price they will sell it. 

Unfortunately, buyers are constantly low balling sellers, therefore, in some instance, a seller will inflate their price to help offset the low ball offer. It’s just a stupid game.  

Depends. 2 years ago I almost doubled the price of my used cars and boat (compared to what the used prices should have been before 2020) and people paid the new increase in price. Have you seen the price of new boats since 2020? I got more for my cars after 1 year of use than I paid for them new. Same for the boat. 

It could be a silly convoluted version of the oldest sales trick in the books . The price is X but today, before a substantial price increase coming, you can have it for .7 X for someone who may be a new potential buyer & just started looking.. 

There’s A Sucker Born Every Minute.

P.T. Barnum.

They need the extra money

I've also noticed what the original poster has observed.  There was a listing for an integrated amp, new in box  - which retails price $17K - which had been offered at 11K since at least early 2022.    Aside from the fact that the ad is very snippy in its language with respect to any lower offers, it is still unsold.  So the owner raised the price to $11.5K.  Go figure.

Inverse elasticity of demand. Place a $6.00 sticker on a bottle of wine and people will think it is garbage. Place a $36.00 sticker on the same bottle and suddenly people will take notice, discussing what a fine bouquet it has. 

Scared to death to buy anything used? It may work out but what if it doesn’t.

Keep in mind anything you buy retail immediately gets marked down 50% when you trade it in. Maybe you’ll get a little bit more selling it on your own used. Solid-state probably sells better than anything with tubes. Well-known brands do better.

But if you buy an amplifier or heavy preamp and then it requires repair out of warranty good luck.

At least if you buy something new and plan to keep it for a while you’ll be better off in the long run.

Don’t cheap out when you buy something that’s on the pricey side.

Why don’t they sell more used cables? This would be tempting.

Estate sale purchases can be awfully good if you’re lucky

@testpilot said:

Unfortunately, buyers are constantly low balling sellers, therefore, in some instance, a seller will inflate their price to help offset the low ball offer. It’s just a stupid game.  

As an occasional seller, I have in fact noticed that no matter whether I price something high or at a bargain low, buyers ask for, and often insist on, a reduction in the selling price. $)#*@

I am an active buyer and seller of gear and other stuff. Over the past 20 years of being an eBay member and a user of Audiogon, Craigslist, FaceacheMarketplace, etc. I have come to a few conclusions:

1) Sellers often hallucinate that a lottery winner will magically overpay for their item.

2) Sellers price a thing at what they wish it was worth. 

3) Sellers recall how much they paid at retail and imagine they should recoup as much of that high number as possible. 

4) the Seller doesn't really want to sell- unless a fool longs to part with their money.

In the end when a seller and buyer are similarly motivated a fair market price is achieved. Normally neither will think it was an optimal transaction. That's how you can tell it was actually a FMV transaction.

On the flip side if a seller is panicked and or must sell he will wind up with a low number. 

Here's my theory; 1/2 the time guys don't really want to sell items, and this is true of other stuff like box sets, but to establish or maintain a market value for future speculation.

Best JS

Every time the price changes on a listed item, up or down, I get an email in my inbox notifying me of a price change on a watched item. I look at the email, which would seem to me like free promotion of their listed item.  A reminder that it's on your watch list and it's still for sale - a wiggle of the worm.  And it's for Free.

As for the strategy of raising the price, perhaps they are at their bottom line for an item and still want to send the free advertising out.  Who knows.  It could be delusions of grandeur.  If something has been for sale for 6 months without a lot of interest, then the market forces have spoken and the item is priced wrong.  It's a tougher concept for some to accept.

@camicut I suspect you nailed it with the free “worm wiggle” for a majority of the cases

@chrisoshea got it, guys will randomly mix it up with a caesar or caprese when we least expect it :)