Reserve Clause

[Archive]

Posted By: Bruce Dorskind

One of the most celebrated causes in our hobby is the need
for transparency.

Whilst we are certainly advocates of transparency and foes of
shill billing etc, we wonder about the extent to which
reserves and minimum bids impact bidding. and ultimately
the final price of the item.

Recently, we wanted to consign 5 items with an VCP value ranging
from $600 to $1000 to a well known E Bay auctioneer. He refused
to take the items because we wanted a reserve of 60% of the VCP value.

In theory, especially in these uncertain times, each item could have
sold for $100 or less- which was going to be the opening bid.

The dealer told us that reserves or minimum bids above 1/4th the projected
value discourage bidding.

REA Auctions appears to have opening bids at 1/4 to 1/5th of the eventual price
realized. Other auction houses have which do not have a reser,ve open at 1/10th
to 1/3rd the estimated value.

In your view, does a fair minimum book discourage bidding?

Why are auction houses so against the idea of a reserve on E Bay?

Given the uncertainty of the market- how does one protect oneself from
giving away a card?


Bruce Dorskind
America's Toughest Want List