What's the logic behind hiding the reserve?

lugerholsterrepair · 02-25-2009, 04:37 PM

Herr Merick..then the winner of the auction actually overpays for the item. How so? Something is only worth what you can get for it. Therefore the most the winner could get for what he just bought is to sell it to the second highest bid, having overpaid the difference.

This statement seems to make sense but under scrutiny it falls apart. The auction has a VERY small percentage of people that could have an interest. If the market pool is broadened the buyer could achieve a much higher price and it happenes all the time. That's why antique dealers flock to farm auctions. They plan to offer their items to a specialized select clientell that were not at the auction.
I have a Friend who constantly and consistantly buys stuff on Ebay, turns around, offers it again on Ebay and makes a profit. There is a skill in HOW you offer things for sale and WHO you offer them to. This all takes knowledge.

Jerry Burney

02-25-2009, 04:37 PM	#19
lugerholsterrepair Moderator Lifetime Forum Patron Join Date: Jun 2002 Location: Arizona/Colorado Posts: 7,775 Thanks: 4,995 Thanked 3,133 Times in 1,439 Posts	Herr Merick..then the winner of the auction actually overpays for the item. How so? Something is only worth what you can get for it. Therefore the most the winner could get for what he just bought is to sell it to the second highest bid, having overpaid the difference. This statement seems to make sense but under scrutiny it falls apart. The auction has a VERY small percentage of people that could have an interest. If the market pool is broadened the buyer could achieve a much higher price and it happenes all the time. That's why antique dealers flock to farm auctions. They plan to offer their items to a specialized select clientell that were not at the auction. I have a Friend who constantly and consistantly buys stuff on Ebay, turns around, offers it again on Ebay and makes a profit. There is a skill in HOW you offer things for sale and WHO you offer them to. This all takes knowledge. Jerry Burney __________________ Jerry Burney 11491 S. Guadalupe Drive Yuma AZ 85367-6182 lugerholsterrepair@earthlink.net 928 342-7583 (CO & AZ) Year Round 719 207-3331 (cell) "For those who Fight For It, Life has a flavor the protected will never know."