“Value” can be tough to define. I have had many items that I was at a loss to price. The ideal price according to veteran sellers is 100% over cost. That means that if you pay $20, you should begin at $40. Sometimes this may be unrealistic for whatever you are selling.
In many ways, merchandise can be like the stock market where it experiences a dramatic and sudden reversal in either direction (the Dow Jones of eBay... mmmm... a new business idea?) So how do you choose a beginning price?...
1) Research... The best way to do research is right on the auction sites themselves. Check completed auctions, as well as current ones, for price comparisons. On many sites, you can look at past auctions for up to 60 days. This type of research will give you valuable guidance.
On the flip side, also pay attention to similar items that didn’t sell. Figure out why they didn’t sell. Do you see any obvious differences? What can you learn?
2) Pay an expert... Because of the huge demand, there are now online sites that will supply an expert appraisal for you, mostly at reasonable prices. For example...
http://www.eppraisals.com/ claims to have a pool of 700 experts who will appraise grandmother’s teapot for $20.http://www.hiddenfortune.com/ charges $29 per item and provides a certified appraisal based on pictures and written details that have been sent by an e-mail.
http://www.classic-camera.com/ will provide appraisals of cameras and related equipment. It will also explain how to look for identifying marks on cameras and equipment so that you can recognize value for yourself.
Even the appraisers themselves acknowledge that we should use caution with these appraisals, especially as buyers. It is easy for unscrupulous people to submit deceptive pictures.
Bottom line? Once again -- just because an item is valued at $500 doesn’t mean that someone will actually pay that much.
Yahoo has a special service that helps sellers link to an authenticator (expert) or a grading service. In certain categories, Yahoo provides a link and icon that will allow buyers to directly view a certificate of authentication, proving that your item is indeed worth the price you are asking. To use this service, go to…
http://auctions.yahoo.com/phtml/auc/us/partners/grading.html3) Price guides... If you walk into book stores, you can find lots of “price guides.” As we mentioned before, don’t take these too seriously. They are just that... guides. As well, many people sell merchandise that is new and therefore not included.
In general, price guides aren’t all that helpful. They can certainly make it easier to decide if an item is relatively rare and whether you should be purchasing it or not. For example, if you see a stamp and your price guide says that only seven were ever made in the world, start negotiating!
4) Fellow auctioneers can help... Look no further for genuine guidance. Most auction users are very friendly and are totally willing to help those with questions. Even so, look at the feedback on these helpful folks before you take their advice too seriously.
5) Set a reserve price... When sellers are totally stumped about the value of an item, they often try and use the “Cover Your Assets” strategy by creating a reserve auction. However, as we discussed before, many buyers absolutely refuse to participate in a reserve auction.
What are you to do? How can you know if a reserve is wise?eBay recommends using the following criteria to determine if you should use the reserve feature for your item...
• Is your item very valuable? If it is, you might consider a reserve. Even those collectors who are drooling on their computer screen over your 1824 signed edition want to feel like they are getting a bargain. If you start the bidding low, hopefully they will be hooked when it begins to rise.
• Do you believe your audience is large enough that you can afford to give up that large percentage of buyers who won’t play the reserve game?
• Is your item hot, hot, hot? If it is then forget the reserve. If the item is in heavy demand, you can count on competition. Set a reasonable minimum and let the excitement build.
• If your market is a real mystery, then go for a reserve. You certainly don’t want to give away your merchandise and then find out later that your buyer made the deal of the century. Just be aware that this can be a dangerous decision because you may price yourself out of the (unknown) market.
• If your investment is low, you may be better off to forget the reserve. Set your minimum profit level and let the market set the rules.
