Well according to E-Bay to be quoted below -- it gets some people in the
bidding that would normally be put off by a high starting price. And
protects the seller from having to sell at too low a price if they start
with an attractive opening bid

Sez E-Bay
--------------------------------------------------
Reserve Price

Don't want to sell your item below a certain price? Set a reserve price!
A reserve price is a tool sellers can use to stimulate bidding on their
auction-style item while reserving the right not to sell below a price they
have in mind.

Many sellers have found that too high a starting price discourages interest
in their item, while an attractively low starting price makes them
vulnerable to selling at an unsatisfactorily low price. A reserve price
helps with this.

How does it work?

A reserve price is the lowest price at which you are willing to sell your
item. If a bidder does not meet that price, you're not obligated to sell
your item. You set your reserve price, as well as a starting price, when you
list your item.

The reserve price is not disclosed to bidders, but they will be told that
your auction has a reserve price and whether or not the reserve has been
met.

All Reserve Price Auctions are subject to a Reserve Price Auction Fee that
is refunded when you successfully complete your auction on eBay. If your
item does not sell, this fee is not refunded.

Leave the reserve price field blank if you don't want to use a reserve
price.

You may lower your reserve price after you receive bids on the item.

Restrictions: Reserve Price Auctions are not available for Multiple Item
Auctions (Dutch Auctions).

---------------------------------------------------------------------

I think its a dumb idea -- but maybe I don't understand all I know about
auctions (:-).I never use it when selling. And as a buyer, I'm put off when
I see a reserve.

-------------------------------

CL

"Unrevealed Source" wrote in message
...
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