It is important to set the right bid amount for your items. This determines the amount your item will sell for as well how well it will sell. You will need to set the reserve amount, minimum bid amount and the bid increments. However, this can be tricky when it comes to auctions. You need to find a balance between setting a price that is high enough to ensure that you gain a profit, while making sure that the price is fair enough to attract bidders. Here are some of our top tips to help you choose a reserve price for your auction items.
How to choose a reserve price
It’s a given that the seller wants to make a profit from their auction. As such, you should set a reserve amount that is fair to you and will allow you to benefit from the auction. But setting a reserve amount that is too high has its ramifications (keeping in mind that the reserve amount is the lowest amount you’re prepared to sell your item for). If your reserve isn’t met before the auction is over, then your item won’t sell.
When you set your reserve amount, we suggest you take into account the market value of your item and try to find a reasonable reserve price. Doing research into your item, and taking into account depreciation, is a great way to make sure that your reserve amount is not too ambitious.
While setting a low reserve amount will ensure that your item is sold at the auction, bidders won’t know the reserve price until it is met. Oktion will let your guests know when the amount is met. This can even work in your favour by boosting competition for your item.
Still in doubt about choosing a reserve price? Chat with one of our Oktion team members to make sure that your decision is the right one!