A couple of items on pricing today.
Mom & Pop Shop on the WebSometimes on ebay you happen across a a seller who just doesn't seem to understand the concept of ebay being the perfect marketplace because it facilitates sales with low transaction costs at a price determined by the bidding process. Often I see items listed with minimum bids far above market value, only to see it later relisted for less, then less still and less yet again. In the end the seller would have made more money, and avoided excess ebay fees by simply listing with a low mininum price and letting the bidding process set a fair sell price.
But the seller listed above, "camera$" (whose name might ought to be "camera$$$$") seems to have a price in mind for what its goods are worth and is holding out to find someone willing to pay a price. Looking over his auction listing history shows a conversion rate that seems to be under 10%.
I wonder how many inventory turns you get with a system like this? How productive is money spent on ebay advertising items at a price only a boutique shop in a rich neighborhood can support? Is the seller looking to make money or simply brag about his inventory over the web.
Strange also is that this seller runs every auction as a private auction. Aruably this is to protect the identity of people who might have expensive collections at home, though I suppose someone might see this as a shield against its pigeonscustomers from being told of their over-market purchases.
I suppose maybe, if the seller finally lowers prices to a point where a sale can be made, this might work on unique, or very hard to find items, if only due to the coveting of and lusting for the unobtainable (in price) becoming a sales incentive for the buyer once the price drops to a reasonable level. Ebay does let you relist for free, but only if it didn't sell the first time and it does sell the second time. The third time you pay again, and the cycle repeats like the second.
Overall, though, I think the competition of bidding often pushes prices to higher than they would be if the bidding starts so highly that not many participants want to join in the bidding. Bidding becomes a competition and bidders become attached to items, presumptively buying the item before the final winner is determined. Also, a quick way to find possible diamond-in-the-rough items on ebay is to look for items that have a lot of bids on them, letting other shoppers "vote" on what they think is/was available at a bargain price.
More Expensive by the DozenI noticed the other day that my local Subway sells cookies according to the following price schedule
- One Cookie for $0.39 each.
- Three cookies for $1.00 for three.
- Twelve cookies for $4.29 per dozen.
Ummm, I'll take nine cookies. Oh, and three more please.
Mmmmmm, cookies.
UPDATE: Tuba Boy correctly points out that, should I actually want a dozen cookies, I should order three cookies, three more cookies, three more cookies & three more cookies.