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  1. #1
    6146-B Billy T's Avatar
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    Default Question for Trade-Me experts........

    I'm a newcomer to the TM world, but what's the big idea with these "No Reserve" auctions that have a fixed starting price set as a defacto reserve? Surely that is a contradiction in terms? Sometimes it is further compounded by a "Buy Now" that is 2-3 time higher than the minimum bid.

    While the Buy Now is acceptable as an indication of the seller's irrational expectations, the minimum bid concept is a reserve in all respects other than name.

    I would have called that false advertising myself, and though I haven't yet looked at TM's terms and conditions, I'm surprised that the practice is permitted.

    It ain't gonna change anytime soon, but I'd be interested in a few opinions.

    IMHO it constitutes false advertising.

    Cheers

    Billy 8-{)
    Some days it's not even worth chewing through my restraints!

  2. #2
    Lets play Metla's Avatar
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    Default Re: Question for Trade-Me experts........

    I like it, works well.
    better Dredd then dead

  3. #3
    Senior Member george12's Avatar
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    Default Re: Question for Trade-Me experts........

    In Trade Me, the reserve is separate from the start price, which must be lower than the reserve. So, a no reserve auction is really a start=reserve auction, and many people refer to it this way.

    The reason they say 'no reserve' is because the reserve is set to the start price, and therefore might as well not exist. Ie, there's no unknown price that must be reached before the lot will sell - the first bid counts.
    ERROR 1045 (28000): Access denied for user 'vbulletin'@'localhost' (using password: YES)

  4. #4
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    Default Re: Question for Trade-Me experts........

    Not sure what your problem is, Billy. Having no reserve means that bidders know the minimum price the seller will accept, ie the start price, and the item is yours if no one else bids. You don't have to keep bidding to find the reserve if their start price is low.

    I have to agree with Metla. It works well.

  5. #5
    Senior Member Mercury's Avatar
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    Default Re: Question for Trade-Me experts........

    Technically all auctions have a reserve.

    Either where start = reserve or else the reserve is an unstated figure somewhat higher than the start price.

    Where an auction hasn't met reserve a Buy Now figure can give an indication of where the reserve is - or what the auction is liable to reach.

    With something like a second hand stove with a start=reserve of $10 and a Buy Now of $200 then it may be beneficial to use the Buy Now. Searching expired auctions and checking prices things sold for is often helpful in working out whether to bid or buy now.

  6. #6
    Damn furballs! Shortcircuit's Avatar
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    Default Re: Question for Trade-Me experts........

    It's the auctions where the reserve price is the same as the buy now price that annoy me.

    You can bid all you like until the auction ends then find that it doesn't make one bit of difference. It is not an auction when you have to pay a fixed price... like when businesses such as Parallel Imported list TVs
    The best buzz is a short, sharp shock

  7. #7
    6146-B Billy T's Avatar
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    Default Re: Question for Trade-Me experts........

    I use Buy Now from time to time when being the successful bidder is more important than the price paid, i.e. for unique technical items that may never come around again, but I really don't like the fake reserve.

    I know how the minimum opening bid works, and why it is used, but it is a contradiction in terms and just feels underhanded. If you have no reserve then you have no reserve, period!

    Genuine "no reserve" auctions often reach unexpected heights, and I have had to fight hard sometimes to buy something special that I need for my business. If an auction fails to reach the seller's expectations, that is simply a reflection on the market value the bidders on the day place on that item.

    Cheers

    Billy 8-{)
    Some days it's not even worth chewing through my restraints!

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