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Declaring a reserve price at an auction generally defeats the purpose of having a reserve price. Let's look at the situation.
If a reserve price was placed on an item at an auction and revealed, that would be effectively the same as setting a starting price for the auction. Bidders would know that the unit on the block had a reserve of, say, $100, so unless someone was willing to bid $100 for the unit, why bother to bid at all? The auction bidder would bid the $100 or just remain silent and wait to see what happens next.
If a reserve price was placed on an auction item and not revealed, bidders would get a chance to bid against each other and attempt to win the item. As the gavel falls on the last bid, the highest bidder would know he had outbid his competition, but would have to wait to see if he met the reserve. This frustrates many bidders. Further, many bidders simply won't "waste time" bidding on anything with a reserve. Their attitude is to have the seller and auction company set a starting bid and everyone can take it from there.
Auctions with a reserve often don't attract nearly as many bidders as they would if there was no reserve. True, the seller won't get to "insure" a minimum return for the item, but that seller will get many more bidders to jump in by not having set a reserve. Anyone who follows eBay auctions will know the general ideas presented here are on point. Lots of eBay items with a reserve (that is not declared) will simply have time expire on the auction without attracting any bidders at all.
Most bidders who might be interested in an auction item with a reserve will just pass on it rather than get involved in any bidding. Why bother to bid and attempt to outbid competitors only to risk falling short of a reserve price that is beyond what a bidder bid? Or a price that is beyond the maximum that a bidder would be willing to pay for the item? Auctions with a reserve tend to stiffle bidding.
What else can I help you with?
How do you sell an original oil on wood painting signed by Joseph Monticelli?
Auction it at an auction house. If the painting is a good one, a better auction house should fetch a better price.
What is the average price of a signed Antoine Barye Tiger Walking sculpture?
The average price at auction would be $9,000.
What is world auction record for the highest price paid for a Tiffany lamp?
A site and a excerpt: A wisteria table lamp brought $231,000, the highest price ever paid at auction for such a model. http://query.nytimes.com/gst/fullpage.html?res=950DE3DE103DF935A3575BC0A96F948260&sec=&spon=&pagewanted=all
How much is John McNeil Whistler's artwork value?
$282 000 was the auction price for one of his etchings in 2010. No painting of his has been sold recently.
What is the difference between a tender and bid?
A bid is usually restricted to making a financial offer eg: at an auction you might make a bid of a certain price for a painting. A tender means that you will offer a service/item at a certain price. So it's a lot more complex than just dealing with a price.
What does no reserve auction mean on jewelry?
If an item has a reserve price at an auction it means no matter the amount bid it will not sell unless it reaches the reserve price set by the seller. This price is not known by the bidder. In a no reserve auction the item will sell by the highest amount bid on the item this is known as a true auction.
What is a reserved bid at a car auction?
maybe you mean reserved price at a car auction? The seller set the reserve price he wants to really sell his car. The Buyers bid on that car till they achieve that reserve price. If the Buyer doesn't achieve the reserve price the car is not sold. It will be sold only if the reserve price is reached or higher.
Is a reverse auction different from a regular auction?
In reserve auction, there is a maximum price for the particular auctioned item, and the bid reaches here, then the seller can not increase but lower the reserve price. In a regular auction, the Reserve price is the maximum price for the auctioned item that the seller willing to accept. You can go and check out for live auctions that are running on banknilami website. You can participate there.
What does it mean if an auction is with reserve?
If an auction is with reserve, it means that the seller has set a minimum price that must be met before they are willing to sell the item. If the bidding does not reach this minimum price, the seller is not obligated to sell the item.
What is a static auction?
A static auction is run online. The seller sets the reserve price and this allows the bidders to place bids around the clock, if desired. Ebay is one example of a static auction.
What is a reverse auction with open bidding rules?
* Reserve auction is an auction where the item for sale may not be sold if the final bid is not high enough to satisfy the seller - that is, the seller reserves the right to accept or reject the highest bid.[32] In these cases a set 'reserve' price known to the auctioneer, but not necessarily to the bidders, may have been set in advance below which the item may not be sold.[31] A reserve auction is safer for the seller than a no-reserve auction as they are not required to accept a low bid, but this could potentially result in a lower final price than might otherwise be the case if this means that less interest is generated in the sale.[32] * http://en.wikipedia.org/wiki/Auction
Can you offer a lower price in Ebay?
You can place a bid for a lower price, but it will not be accepted. There is a minimum price set by the seller, and a reserve price sometimes set. If you bid below the minimum, it is not allowed. If you win an auction below the reserve price, the seller can refuse it. If you underbid the current high bid, it will be rejected. Rarely, the reserve price is below the opening sale price, so try it and see what happens.
What does no reserve auction mean?
A no reserve auction is a type of auction where there is no minimum price set for the item being sold. This means that the item will be sold to the highest bidder, regardless of how low the bid may be. This approach can encourage bidding, as potential buyers may feel they have a chance to acquire the item at a lower price. However, sellers risk selling their item for less than its market value.
What does it mean in a car auction reserve off?
No reserve means the seller will accept what ever the highest bid is. If an owner started the bidding with a reserve price (meaning minimum amount to sell at auction) and the owner, at some point during the bidding, asks to have the reserve removed (will then take highest bid) the term Reserve Off is used to say that now the car will go to the highest bidder.
What is the difference between absolute auction and confirmation auction?
In an absolute auction, the highest bid wins the item or real estate, there is no minimum bid requirement. In a confirmation auction the highest bid has to be confirmed/approved by the owner or bank, sometimes also referred to as a reserve price.
What does reserve off mean in a car auction?
The sellers have the option of placing a protective price on the car. If the bidding doesn't reach that price, they are under no obligation to sell the car.
What is the value of Pokemon TV animation edition unopened box?
Toss it up on eBay n auction with a reserve price of what you think is reasonable. And you could be surprised !
