Auction Bidding Question
Archive summary
General Discussion thread on victorianforum.com · started October 15, 2007 by formulagal · 4 posts · discussion in 2007.
I recently signed up for an online live auction and the starting price for a certain item was $50 with an estimated price of $3500-$5000. I placed my bid, it was accepted, then the auction house immediately bumped up the bid to $3500 on behalf of the seller. I noticed this…
I recently signed up for an online live auction and the starting price for a certain item was $50 with an estimated price of $3500-$5000. I placed my bid, it was accepted, then the auction house immediately bumped up the bid to $3500 on behalf of the seller. I noticed this was happening for all items. Why would an auction house have a low starting price when they never intended to sell low?
Formulagal, would this happen to be an auction through GoAntiques Live?
If it is GoAntiques Live, then here is your answer from their Terms and Conditions:
So the above confirms your statement about them bumping it up to the reserve for the seller. The question is why do they do this with a low teaser starting price? Why not just advertise the seller reserve?
Same as Ebay regular auctions - the reserve is confidential and the start price is there to spur interest and bidding. I know I have personally gone over my initial bid maximum for an item "once I was in the fray". Human nature is to walk away when a minimum price is known and it is higher than your first max price. But if you don't know the reserve and you become emotionally engaged (a few bids in and not knowing if you'll win it), you stick around for the reserve to be hit and you may change your mind on your max price.
Auctions know there is an element of herd mentality on bidding. Less people will bid for an item with 0 bids ("whats wrong with it?"), than the same item with 4 bids on it ("I gotta get in on this").
3. Online Bidding: By registering to bid through GoAntiques? Live Auction service you agree to accept GoAntiques? policies of bid history disclosure, including the policy that live online bidder?s increments are not reported when bidding against an absentee bid until the absentee bid is surpassed.
Bidders may leave absentee bids on items they wish to purchase. For bids placed on the goantiques.com website, GoAntiques' Auctioneer will bid for the absentee bidder which will be displayed during the Live Auction and on ebay's bid history as an "Auction Floor bid". The Auctioneer will also be responsible for protecting the reserve of the seller which will also be displayed as an "Auction Floor bid". "Auction Floor bid" is the designation given by eBayLiveAuctions to bids made by the Auctioneer in either situation. An additional notice will be posted during the auction by GoAntiques identifying such bids as "Auctioneer's bid for seller". All bids left by eBay bidders will be marked with the user's eBay id.
8. Reserve Price: All lots are offered subject to a reserve. A reserve is a confidential minimum price below which such a lot will not be sold. GoAntiques will act to protect the reserve by bidding through the auctioneer. The auctioneer may open the bidding on any lot below the reserve by placing a bid on behalf of the Seller and may continue to bid on behalf of the Seller up to the amount of the reserve. This may be done by placing absentee bids, consecutive bids, or by placing bids in response to other bidders.
So the above confirms your statement about them bumping it up to the reserve for the seller. The question is why do they do this with a low teaser starting price? Why not just advertise the seller reserve?
Same as Ebay regular auctions - the reserve is confidential and the start price is there to spur interest and bidding. I know I have personally gone over my initial bid maximum for an item "once I was in the fray". Human nature is to walk away when a minimum price is known and it is higher than your first max price. But if you don't know the reserve and you become emotionally engaged (a few bids in and not knowing if you'll win it), you stick around for the reserve to be hit and you may change your mind on your max price.
Auctions know there is an element of herd mentality on bidding. Less people will bid for an item with 0 bids ("whats wrong with it?"), than the same item with 4 bids on it ("I gotta get in on this").
Yes, it was GoAntiques. I was actually somewhat turned off by the way the auction bidding was handled. Thank you for the insight and their Terms & Conditions.