|
 |
Start Your Prices Low
The most important advice that we can give about pricing is to set your minimum
price low – the lower the better – whether it’s your start price
on a no-reserve auction or your reserve price on a reserve auction. Setting your
price low gives your listing a chance to “go live.” In other words,
your bidders will know that when they’re bidding, they have a chance to
win because their bid has met your lowest price. Once bids are “live,”
positive auction emotion and psychology take over and your listing price has a
better chance of running up.
Your minimum reserve price should be set at your best alternative price, which
for most sellers is wholesale or even below wholesale if they have sourced their
cars from a cheaper source than a wholesale auction. Remember, your reserve is
not the end of your margin, it’s the beginning of your margin. Have faith
that the massive traffic of the eBay Motors marketplace will drive your winning
bid above reserve. And also remember that the last hour of an auction, or even
the last 5 minutes, is often when a lot of bidding activity takes place.
Your minimum starting price should always be as low as possible. If you are
protected by a reserve price, then it doesn't matter how low you start your price.
You should start it at $1. Low start prices encourage bidding activity and tap
into the emotion of potential buyers. The more people that bid on your auction,
the more likely it is to capture the interest of others. Make that mob mentality
work for you. Start Low to Sell High.
Experiment with Reserve and No Reserve Auctions
Our research and the experience of our top sellers show that reserve auctions
are a very effective way to list cars for auction without the risk of taking a
loss, but that the presence of a “reserve not met” on your listing
can negatively influence auction psychology and in turn limit bidding.
“No Reserve” auctions on the other hand are highly effective for
capturing positive auction emotion and driving a high number of bids. While the
lack of a reserve safety net does represent a greater risk to the seller, if you
play by the rules, resist the temptation to bid on or close out your own auctions,
and have the nerve to risk an occasional loss for an overall more substantial
gain, the “No Reserve” auction strategy can prove to be highly effective.
Whether you use the Reserve or the No Reserve pricing strategy the goal is
the same. You want your auctions to go “live” as early on in the auction
as possible so your bidders are excited and encouraged that the next bid might
be the winner.
Use the “Buy It Now” Feature as a Signal
A Buy It Now (BIN) price can send a pricing signal to your bidders when they cannot
see your reserve price. This signal can do a lot to help you attract bidders and
sell more cars, but it has to be used wisely. Buyers will jump if BIN is aggressively
priced, but a high BIN, such as a price at or above their local retail pricing,
will also scare away bidders. We recommend putting BIN somewhere between wholesale
and retail prices, no more than 10 bid increments, or $1000, above your minimum
price (your reserve price or your start price in a no-reserve auction). BIN should
ultimately be at about the price you would expect your auction to run up to once
it “goes live.” Leave some space between your reserve price and your
BIN price in order to give the auction a chance to “go live.”
Use the “Lower Your Price” Feature
Use our new “Lower Your Price” tool to negotiate with your bidders
online, and let the marketplace do its job without sacrificing the security of
a reserve price. Meet your bidders in the middle while still reaping the benefits
of closing online (a chance to earn and give feedback, eBay Assurance protection
for your buyer, and a chance for your buyer to use the eBay Financing Center).
Both the “Buy It Now Lowering” and the “Reserve Lowering”
features provide additional value by automatically contacting your bidders by
email when the prices are lowered, enticing them with your latest offer. Lower
Your Price allows you to lower or remove your reserve price during the auction,
and to add and lower a “Buy It Now” price as well. When you add, remove
or lower either price an email is automatically sent to all of your bidders to
inform them of the change and encourage them to bid again. The automatic email
feature will increase your communication with prospective bidders and the added
pricing flexibility will allow you to haggle with potential buyers online without
sacrificing the potential upside of letting the auction run to fruition.
|
|
|
eBay Motors Support
|
|
