Garfish, is right about auction psychology. I watched a listing of friend, who for a month had a classified add for a very clean $3000 CD player. He listed it for under what everyone else was selling them for thinking he would turn it quicker that way as he had already bought another machine. He was at least $200 under everyone else by the end of the add at $900. Well the add expired, and still no sale. He decided to auction it. He didn't use the hidden reserve though, he went no reserve and started at $1. I have seen him sweat on these no reserve auctions before. It takes real balls! Anyway at the end of the auction the thing sold for almost $1300! There is no other way to explain it than that someone else must think it is worth buying so I better bid more, when a week before they could have bought it for $900. It was VERY interesting to watch.
Using a hidden reserve price in auctions.
I've been both a buyer and a seller in Audiogon auctions and have not only made excellent deals with terriffic people, but had a lot of fun doing it (thanks, Audiogon!).
I've always wondered, however, why some people bother to use a hidden reserve price in auctions. I suppose some potential buyers may enjoy the mystery of a hidden reserve price, but it tends to just put me off. If a seller has a reserve price, why not just have an auction with a minimum price and no reserve? Perhaps some sellers don't realize that you can do this.
How do you feel about this?
I've always wondered, however, why some people bother to use a hidden reserve price in auctions. I suppose some potential buyers may enjoy the mystery of a hidden reserve price, but it tends to just put me off. If a seller has a reserve price, why not just have an auction with a minimum price and no reserve? Perhaps some sellers don't realize that you can do this.
How do you feel about this?