starting prices and reserves

[Mummy2CharlotteJean]

why do people put daft starting prices on, say like 99p when they have a reserve of about 60quid?

dont see the logic

People are more likely to bid on something starting at 99p. If the bidder then puts in their maximum bid and it's above the reserve, it automatically ups the bid to the reserve price.

It's just to lure bidders in.

Everyone wants something for a bargain. So people are more likely to bid on something that starts at 99p than at, say, £50. An auction will end at the price of the second highest bidder. So to get a good price, you need at least 2 bidders to place realistic highest prices ie near £60, rather than £1.20!

As Doesn't says, a low starting price is a way to entice the punters onto your auction. Particularly if you are selling an item in a competitive market with similar products.

If I had a reserve price, I would start at 99p as well, as I know anything less than £60, I am not obliged to sell at. It is when I don't have a reserve price that I need to think more carefully about the starting price.

Also, you are charged 2 fees. One for your reserve, and one for your starting fee. I think the reserve fee is refunded if the item sells, so the seller wins both ways - low fee for starting price if the item does sell, but they're protected by the reserve in case it doesn't do well.

I didn't know that about the reserve and your maximum bid though. I thought if you bid £100 and the starting price was 99p, and the reserve £75, you wouldn't get it unless somebody else bid against you. I've never tried though, so could be wrong.

No - you'd win it for £75 - the lowest price that would be accepted.

I never bid on something with a reserve-it annoys me-if that is the lowest they want then they should start at it. Low starting prices draw people in-I gamble on things that I know will sell and start at £1-I haven't been let down yet but the downside is that I would have to sell at that price. If you have a reserve price there is no point in a low bid.

Good point, Abbey. Low starting prices draw bidders but a reserve turns bidders off. So a bit counterintuitive to have both. Minimum reserve is £50 anyway (I believe) so a bidder will know that they must bid over £50 to win it all.