Opening price vs (known) reserve Poll

[HRBAKER]

Agreed, Greg's post make some excellent points. But to me what he is describing is a sale purporting to be an auction. Maybe it's semantics but if it is an auction with no reserve then again as was pointed out - you know it is going to sell and I am engaged. Otherwise not so much. However I do understand all of the rationale for a seller protecting his flank.

[botn]

Jeff,

I guess you could call what I have described as a Sauction. Is the domain Sauction.com available???? It is a hybrid of an sale and an auction and only works if the seller establishes a fair and reasonable floor which would invite more than just a single bid. With as much shill bidding as has been alleged recently one could argue that there already an abundance of auctions employing "reserves" and "high openings".

Greg

[HexsHeroes]

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For those auctions inwhich the reserve is unknown, I send the seller a polite inquiry. If the seller refuses to divulge the amount, I bail on the auction. My time is valuable (at least to me) and I am not a fan of guessing games.

If the seller does reveal the reserve, I feel I may have a slight advantage on most bidders in the auction. Some may pass, since there is a reserve. Others may assume the seller will not reveal the reserve amount. In those instances, I know something they do not. And I know others will have asked (and been answered) too.

I like auctions with high but fair minimums, when it's an item I covet very much. For those auction items, I would prefer fewer bidders (especially the resellers) participate in the chase. But I realize there are other, serious collectors who may value the same item as much as I (but with deeper pockets.

For those auction items inwhich a bargain is desired, lots with higher minimums and reserves are passed on.

For the seller, I understand the value of a reserve or minimum, inwhich to establish a minimum sale price in an auction format. It may limit/discouraged heated bidding and a higher sale price, but it eliminates giving an item away.

[dstraate]

I've got nothing that hasn't been said already, but I won't typically bid on unknown reserve items. It feels like a waste of time somehow.

[AndrewJerome]

This is an interesting issue.

No bidder likes a hidden reserve. However, material usually trumps all. I will bid regardless of the format if I really want the item. To me it is silly to boycott a great item because of the bidding format.

I voted #1 and #2 about the same. It really will depend on the particular item and the level of the reserve/starting price.

I am ok with a market (or even above market) known reserve because this still allows bidding and possibly negotiation when the auction closes.

A close to market starting point generally is good for a bidder who really wants the item. An initial bid may be the only bid. However, an above market starting price (in the opinion of a bidder) is frustrating. As a bidder, who wants to look at an auction full of lots with high starting prices and no bids? The sticky point here is how to know the market value of rare items. It can be very difficult. And around and around we go. . .

Andrew

[Rob D.]

Bidding on auctions with a hidden reserve can be too time consuming? How long does it take to place a few extra bids to see whether you hit the reserve? A minute? Two minutes?

Quite often a popular response when the topic is shill bidding is, "I bid the highest amount I want to pay, and that's it. That way I know I won't be shilled."

Even though that's severely flawed thinking, it's a standard for many people. So be it. But why not apply that school of thought to auctions with hidden reserves? Place a bid that's the most you want to pay, and if hits the reserve, great. If not, move on.