Why do cards at auction sell for more?

[Leon]

I would like to hear some thoughts on why cards sell for more in auction than privately? I can't count the number of times I have seen a card (or owned one) that wouldn't sell for a long time at a fixed price. Then when put in a good auction setting, with a low starting price, it goes for more than the previous fixed price that was on it. I put one card in auction one time and forgot to take it off my fixed price site. The card sold for more than the fixed price and the buyer asked if he could get it at the fixed price. I said it was an auction and that was the price, I just forgot to end the private listing.
I have some ideas but would like to get others views..

[Howe’s Hunter]

Auctions generate more "buzz" than a fixed price selling. One person might have wanted it, but put it in an auction setting and suddenly, there are several interested in it, and it creates a frenzy.

[ullmandds]

I think there are a lot of reasons...exposure to more people...the competitive nature of an auction may cause more people to bid/bid more than they may have anticipated, loss of another desired lot may cause people to bid on other items.

[ILTBOC2]

My theory is that people have invested their time in watching an auction for however many days leading up to it. When it's time to bid they are less likely to "let it go" due to the time investment as compared to a fixed price item that may likely be there in a few more days/weeks, etc. Subconciously, people want to see a positive outcome to their time investment....aka...winning the auction even if it means paying more. Just my thought.

[Edwolf1963]

A few random thoughts on this (..in no particular order)

1. Better merchandising in auctions houses (generally speaking) - pictures, notes/descriptions, etc.

2. Impulse, thrill of the competition. Versus other buyers, being outbid and getting "back in the game" (much like the impulse of live auctions, raising the paddle one last time) 'I'm not going to let him/her snag that card from me!" - Fixed prices don't give you that sense.

3. Momentary lapse of thought, outright forgetting or overlooking the juice. Fixed focus on the price looking reasonable, below market value .. only to bid, then realize that total cost may take you well above

4. Exposure. Some well-established, well-known auction houses have (or seem to have) greater name recognition, legacy, exposure. IE: Goodwin, REA, Huggins & Scott, etc. Example: Ask yourself how many times you geared up and bid strong/stayed in the game for REA - especially since they're (up to this year) once a year.

5. Peace of mind. There's (perceived and real) greater risk via eBay and private seller listings not knowing who you are dealing with, quality/authenticity of the card or merchandise, etc. Most auction houses stand behind what they sell and will protect buyers in cases that warrant.

[packs]

I know when I see a card for a fixed price I'll try to get it for a lower price than advertised if I can. But if it's a free-flowing price like in an auction I'll try to win against the competition.

[scooter729]

I think some people feel that with a fixed price, if it was a good deal then someone else would've bought it already, regardless of how fair the price is to start.

Everyone seems to want the best deal, and many feel that doesn't come from a fixed price these days. I don't agree when it comes to the BST here, as I have found many items priced very fairly and made purchases.

[T206Collector]

I always feel that if the price is fixed and it hasn't sold then that means you are over paying.

If you win an auction, it just means that you are paying over the next highest bid. You have more confidence that that bidder will still be there when you go to sell.

[thecatspajamas]

There also seems to be the sentiment that if an item is up for a fixed price today, it will probably still be there tomorrow, and the day after, and so on. The buyer can procrastinate pulling the trigger while they pursue more urgent purchases. Put it in an auction-type setting though, especially with low starting price, and that feeling of "oh crap, it's gonna be gone forever" sets in and stimulates the buyer to bid.

[Stonepony]

Yep, its the competition. Tough to lose out on a card you want because you couldnt pull the trigger on an extra $1.50

[glchen]

On ebay, many buyers exclude BIN's from their searches. Also with BIN's, many buyers are not sure that they are paying "fair market value" and believe they may be overpaying. With auctions, the buyer believes that they are paying the market price.

[iwantitiwinit]

I think in general collectors of sports cards and related memoribilia are competitive people. There is definitely a competitive aspect to auctions and the bidding process. We don't like to lose and in an open auction setting that competitiveness rears its ugly head in the form of macho bidding.

[Wymers Auction]

Auctions are the oldest and best form of selling items known to man. I am a bit biased.

[dougscats]

Interesting question, Leon, but I'm uncertain about a couple of terms:

By auction, do you mean an ebay-type auction, or an auction house, or perhaps both? Or something else, like a Net54 auction?
Also, when you say privately, I'm confused. Do you mean a BIN price or store price on ebay? Or are you talking about a private listing on Net54, for example? Or something else?
I think you may have different answers, depending. Thanks for any clarification.

I have very little experience at auction house bidding, but on ebay I sometimes let a BIN item just sit on my watch list, sometimes to my regret. There's often not a great sense of immediacy with BIN, and I may tend to mull over the price/a best offer at length.
More often, I don't even look much at BIN items, as many prices are outrageous, and I figure the good deals are already gone. In fact, due to time constraints, I often screen out BIN, and I don't think I'm alone in this practice, so I may not even see your good deal.

Doug

[conor912]

Competition, baby. There's a reason AH watch lists tell you what you're currently "winning" and what your currently "losing". As collectors, we hate "losing" an item. It's how we're wired. I know I do, but for me it is more about price validation. When winning an auction, i like knowing that there are numerous underbidders as it reassures me that I would most likely recoup at least most of my money if I ever chose to sell.

[sbfinley]

Sometimes, especially with major auctions, one (or all) of the items I really have my sights on blow past my budget. This usually results in another drink and a "not leaving empty handed" mentality.

[Herpolsheimer]

Competition.... Human Nature carries a competiveness.... No one likes to lose.... Hence, auctions create the playing field where our behavior will drive up the price.... Even to the point where alphas will overpay...

[Exhibitman]

Better-heeled class of clientele; plenty of six, seven and eight figure incomes as compared to the great unwashed masses who shred Ebay hunting cards. Ebay tends to attract the bottom feeders [no offense; I am one]. Not many $5,000+ Ebay cards but lots of them in a good auction. Lots of other good answers too that undoubtedly play a part but the socioeconomic status of the auction house customers is the key IMO.