Quote:
Originally Posted by daviddbreadman
The probably have to use reserves now as they probably have to protect what little capital they have. After all they are supposively a start-up company.
They probably have to go into the markets to buy inventory for consignments so that they have something to offer for sale on their auctions. Its not probable that anyone with any brains would consign something to them. They probably have to make sure any capital they probably spent on purchasing items would be recovered in their auctions. They are also probably wouldn't mention anything about these reserves up front because you probably wouldn't bother bidding.
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I am not so sure about this statement. In today's economy and hobby I think reserves aren't a bad thing depending on how they are done. Ask any consignor that has taken a huge loss and they will agree. Sometimes it's better not to sell than to take that big of a hit. Personally, I like to know about reserves if there are any. I doubt they were doing reserves to protect things they might have owned anymore than they would do one with a consignors item(s). Just my opinion on that. As for offering things they might own it is no concern to me unless there is nefarious activity going on. I don't really care who owned an item I am buying unless it's a hobby pioneer and then the provenance is kind of neat. Knowing there is a reserve will sometimes prevent some bidding...so that is a potential explanation on that issue. regards