Using a hidden reserve price in auctions.

My 2cents is that I usually avoid bidding on auctions if I dont know what the reserve price is. I once emailed a seller askingwhat the reserve was with the intention of maybe making a direct offer. He would not reveal the reserve so I made no offer. Who knows...maybe hidden reserves are a way of trying to get too much from an item. I cant begin to say how many auctions had a hidden reserve & buy it now option where the bid was within 5% of the buy it now price but the reserve had not yet been met.

I agree with you the a hidden price should be visible, it can only help the seller and also the buyer. What bothers me most is that in a number of auctions I have encountered, there have been strange bids by people who had never bought or sold anything and who put in high prices, as if they were tryign to boost the price of the auction, this bothers me more than the visible reserve issue

I have had an experience with a hidden reserve and a minimal opening bid that ended up being beneficial to both me[the buyer] and the seller. As is my practice with these types of auctions I decide my maximum bid[my buy it now price] and stick with that no matter what. I placed the bid but it turned out to be below the hidden reserve so I thought I had missed out on the item. However, a day or so later the seller contacted me [the item had not sold] and we eventually made a deal that was below his reserve and slightly above my bid. Had he set a minimum bid at the same amount as the hidden reserve I probably would have passed and not bid at all. In general, however, I avoid auctions - twice I was the high bidder but still placed a higher bid .

An item can be sold for less than the reserve. There is just no obligation to sell. The high bid below the reserve is the same as an offer that is less than the asking price on a classified. You can also negotiate some other price.

I have gotten some great deals on eBay and here because the seller decided to let me have it for my high bid that was less then the reserve, or still less than I would have offered had it been a classified.

The big auction housed Sotherbys, Christies, etc., hold reserve auctions all the time. If the seller won't sell the Picasso for less than $5 Million, then no sale. The reserve is secret. If they told you the reserve up front, what is the point? They might as well take it to an art dealer and take offers.

When I have used a reserve, it has always been set at the bare minimum I will accept as an offer, if it had been a classified. My reserves have always been exceeded. Probably some people have unrealistic expectations, and set them too high.