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petecldLeon, I made this same, albeit altered, response in another thread.
There is no answer to reserves that will make everyone happy. Truth be told, I'm kinda in both camps. As a buyer, I don't like them but I don't let them stop me from bidding while an unusually high opening bid will stop me from bidding. As an employee of an auction house who's is trying to get a consignment, it is an effective feature that I can offer.
Yes, Heritage has reserves but unlike eBay or any other auction house we disclose the reserve amount (if there is one at all) well in advance of the end of the auction. Every lot has a entry about the reserve. With Heritage, bidders have plenty of time to place a fully informed bid. Our policy with consignors is to keep reserves well within reason as compared to the anticipated final bid and only on items we feel will sell for at least $1,500. All agreed upon reserves are done in writing.
Yes, I have lost a consignment because I would not accept an excessive reserve. I don't worry too much about that happening because my goal (and others at Heritage) is to do our best to satisfy both buyers and sellers IN THE LONG TERM. Single hit and run deals that never sell will fill a catalog but only once. Hopefully I have many years of catalogs to offer items and a combination of both happy consignors who like the prices they see and happy bidders who build their collections via Heritage auctions is the best way to accomplish that goal.
As for our upcoming auction, THERE ARE VERY, VERY FEW RESERVES IN THIS AUCTION and most are on non-card lots. I am trying to convince the powers that be that if we don't have a reserve to just say that from the first day of bidding but that may adversely affect the lots that do have reserves so it is a touchy issue for the auction house. You want to be fair to everyone which is why the full disclosure in advance approach is utilized.
BTW - Bruce, we (and when I say "we" I mean the sports dept. at Heritage) aren't worried at all about the bids right now. The final days of any auction I have been a part of have always been the most spirited. Some bidders I've talked to just like to watch lots until the end and then place a single what I call a "win it or oh well" type bid. What no one sees are the emails and phone calls we are taking from interested bidders. Yes, I know that everyone who says they will bid won't but we are encouraged. When you give collectors weeks to bid it would be silly to think the numbers will just go up every minute of every day, reach the max almost a week before the end of the auction and just stop. That's totally against the nature of the collector. Auctions are still fun FUN for hobbyists. Remember having "fun" with the hobby? Those days aren't over by any means for most in my eyes. You can tell the world the sky is falling but for right now in Dallas, it's bright and sunny with few clouds in the sky.
Good luck to everyone!
Peter