why have a reserve price?

[screamndemon69]

i don't get what value a reserve price (eBay) has on an auction? it seems like it is a time waster and you get a bunch of emails from idiots just kicking tires that have no money.
i start my auctions at what the minimum amount i feel comfortable selling an item and then i know anybody REALLY interested will bother to email me with questions or for pics. when i get at least one bid, i know my item is sold (if they aren't a deadbeat! ).
maybe somebody can clue me in to what use a reserve price might have - 'cause i just don't get it?!?

[LLL777]

It's playing on called human psychology: bidder's GREED

Start the auction at a unbeilevable/unreasonable low price like $1 and supposedly people will jump to get the bargain. This creates interest and competition leading to more bidding. The seller is hoping you get caught up in the frenzy and bid more than you would have normally.

Since eBay started extra charging fees for auctions that don't meet the reserve price you stopped seeing some of that. However people just got around that by not putting in a reserve price and cancelling auctions at the last minute when the bidding wasn't up to where they wanted it to be.

[zenabi.777]

I always start my auctions at .01 or so. It gets the momentum going then people get emotionally attached and bid until the end. I never run a reserve only because the item will normally bring what it's worth. I also run short auctions such as 3 days. It increases the urgency. Also helps to really, really, REALLY focus on snapping GREAT shots of what you are selling. Photos with obvious detail. Take all angles so the buyer can see what they are really buying. Like the other member states, the auction should appeal to the emotional side of the buyer. These three elements will drive a TON of interest to your auction.

LP

[jemsite]

reserve is good IMHO if you are clueless about an items actual worth and/or do not want to sell a particular piece of gear for less than XXX dollars. you could obtain a bunch of bids (or no bids) and relist for free. of course you could set the initial price to match your intended reserve but that goes against the psychology of driving "bidders"... glen