You're mostly correct, but it's not quite that simple.

Say you've got a radio for sale and you set a reasonable reserve to protect
your investment. In other words, below a certain price you're willing to
keep it and try again another day. Let's say that reserve is $200, and
let's also say that it's worth that, maybe more (your reserve is
reasonable).

For whatever reason (time of year, other listings of the same radio running
concurrently, whatever) interest is lower than expected and no one has yet
met your reserve. I come along and snipe it, and as the high bidder at $190
I have "won" the radio. However, I haven't met your reserve so no
transaction takes place. Everyone's time is wasted.

BUT, if I email you and ask "What's your reserve" and you tell me, I would
probably bump my bid to $200 just to guarantee that if I am the high bidder
that I will actually get it. Why wouldn't you tell me your reserve? It's
kind of self-defeating to keep it a secret.



"Roadie" wrote in message
oups.com...
On Jan 31, 9:21 pm, "Unrevealed Source"
wrote:
I think it's fair to say that most people here are fairly savvy when it
comes to eBay buying/selling, so let me throw out this question: What is
the value of keeping a reserve price secret?

When there's a radio I'm interested in that has a reserve, I always ask
the
seller what that reserve is. That way I know whether or not I'd be
wasting
my time watching it, and it may make a difference in how much I bid. So
if,
for example, you see a $400-450 radio but the guy says his reserve is
$800,
you don't waste your time. And likewise if he says his reserve is $425,
you
might bid the $425 even if $375 would make you the high bidder, so that
you
actually get the item instead of "Reserve not met" being the result. If
you know the reserve you can make the decision.

However, many sellers reply that they don't reveal their reserve.
What's
the point? Isn't the reserve just another way of saying "This item is up
for auction to the highest bidder, but here is the least I'll take for
it"?
What am I missing?

Jeff


Who cares what the reserve is - it is irrelevant to what you should
bid. You should know the value of the radio and what you maximum
price is. If you are interested in the item just bid your maximum and
get on with life. The proxy bidding system will bid yours and
everyone elses bid up. And I guaranteee you that the the person who
wants the radio the most will win because they will be the high
bidder.