Trademe question

[pete376403]

Sure this has been asked before and I did search, but anyway...

What is the protocol when an auction is "no reserve" but a start price is listed? Say the start price is $50 and the highest offer is $25 when the sale closes - is that a sale or not?

I looked at the Trademe FAQ but it did not explain these circumstances.

Thanks

[John_H]

Sure this has been asked before and I did search, but anyway...

What is the protocol when an auction is "no reserve" but a start price is listed? Say the start price is $50 and the highest offer is $25 when the sale closes - is that a sale or not?

I looked at the Trademe FAQ but it did not explain these circumstances.



Thanks

If an auction is no reserve then any bid wins it. The start price is the reserve. It would be impossible to have a start price of 50 and a bid of 25 if there was no reserve.

[warewolf]

I didn't think you could put in a bid lower than the start price... it's the lowest accepted bid. In the same way, there are minimum next bids - you can't bid less. So your situation can not occur.

[pete376403]

OK, thanks for explaining that - so the next question is - if a start price is set, why say it's no reserve? If you can't bid any lower, then that becomes the de facto reserve, or am I missing something really obvous?

[nallac]

I take it the OP mean there was no reserve in the blurb..but not the actual Start price =reserve..

[Thaeos]

OK, thanks for explaining that - so the next question is - if a start price is set, why say it's no reserve? If you can't bid any lower, then that becomes the de facto reserve, or am I missing something really obvous?

No that's pretty much it really.

[oracle]

OK, thanks for explaining that - so the next question is - if a start price is set, why say it's no reserve? If you can't bid any lower, then that becomes the de facto reserve, or am I missing something really obvous?

No you're right, that then becomes the reserve. It's just so that people know that if they bid, they can win the auction and get the object as long as noone outbids them. This is specified as you can have a reserve higher than the starting bid if you wish (of course at an extra cost paid to tardme), but people are more likely bid for an item if they know that their bid will be above the reserve and they could potentially get it. This is the same reason why trademe shows when an object is within 15% of the reserve

Oops someone got in before me

[Rogue Rider]

OK, thanks for explaining that - so the next question is - if a start price is set, why say it's no reserve? If you can't bid any lower, then that becomes the de facto reserve, or am I missing something really obvous?

Its a no reserve auction as the reserve is stated and is the start price. If there is a reserve, it may have a lower start price, however it doesn't become live auction until reserve is met.
Reserves are set buy buyer as there minimum price to allow them to get the least amount they would take for the item, over keeping it if it doesn't meet reserve.
If an auction is no reserve and bid start, starts at $50. The starter value is usually to entice bidding around what the seller anticipates the item could be worth.

[Mom]

OK, thanks for explaining that - so the next question is - if a start price is set, why say it's no reserve? If you can't bid any lower, then that becomes the de facto reserve, or am I missing something really obvous?

Consider the start price a dealer bid that has to be beaten to win the auction. No reserve is just that, if it has a starting bid then you have to do better than that to win.

[pete376403]

Thanks everyone.
I think I've got it now.

[Max Preload]

Start = Reserve is not a NO RESERVE auction. TradeMe does not have NO RESERVE auctions. All auctions have a reserve. TradeMe just have their terminology fucked up. Also, you can't bid less than the reserve on any TradeMe 'NO RESERVE' auctions - you have to bid at least reserve.