Is no reserve really the truth?

Interesting timing on this question, because I have just had an experience here on Audiogon that made me inquire (to the Audiogon staff) if a seller could post a reserve price AFTER the auction began. I bid on a TEAC mini-system and the auction page stated that I was the high bidder (admittedly at a very low price). There was no reserve price posted, and I have the printout of the page to prove my point. A day later, when I checked the progress of the auction, there was a reserve price posted that had not been met. I sent an E-mail to Audiogon for a clarification, and they said that there was NO WAY that could happen, since sellers are not allowed to post a reserve price once an auction begins. However, the E-mail I received from Audigon DID say there was a chance of a glitch in the software. Hmmm, now that leaves me feeling really reassured! I guess the main point here is that one must study the terms of selling by auction, and exercise some caution even on Audiogon.

Interesting observation, sdcampbell, as I am confident that happened to me at least once before. Unfortunately, I didn't keep a copy of the Web page, so am unable to substantiate it. As it turned out, lucky for me someone else won the auction in question because the dealer that placed it turned out to be a jerk whom, based on our correspedance, would not have appreciated my business. Thanks for the heads up; I'll be watching more closely. As for reserves, minimums, etc. my belief is they should all be disclosed. Like agendas they serve no good purpose when hidden except to deceive.

Hi, Fpeel: I share your thoughts. The reserve price method is a ploy, in my opinion. If one is not going to accept a bid below a certain point, then establish that point as the opening bid requirement. You may not get a lot of the early bidders, but you also eliminate the "looky lou's". With regard to the "bait and switch" technique I think I experienced with the reserve price suddenly appearing after I was declared high bidder, I'd be very interested to see Audiogon respond the points in this thread.

It appears there two are different issues being discussed here:
1. The terminology and notification system used on the site for reserve price auctions.
2. The acceptance of reserve price auctions in general, or the lack thereof.

1. In regards to the notification system, it sounds like Sdcampbell understands the term "high bidder" to mean something different than what we think it means. Our definition of a High Bidder is independent of the reserve price, period. If you have the highest bid in place, then you are the high bidder, regardless of whether there is a reserve price, and if so, whether the reserve has been met. Each listing will always indicate whether there is a reserve, and if so, whether it has been met. One possible source of confusion may the fact that listings do indicate "no reserve" in a very similar manner to "reserve not met". As in, they are both blue colored links, as opposed to one of them being red perhaps. Thus, upon first glance, this indicator may not be as clear as a multi-colored one. Another possible source of confusion may be that Dutch Auctions do not indicate anything about a reserve, since by definition a Dutch Auction here can not have a reserve. Perhaps we will start indicating "no reserve" on all Dutch Auctions, to make it more consistent. However, we are quite sure that every single-item auction indicates the reserve status all of the time, barring some bizarre page layout or browser incompatibility issue.

2. In regards to reserve price auctions in general, we consider them a necessary option for auctioneers. It is understandable how some bidders may not like reserve price auctions, and we do inform sellers that reserve prices will turn away some bidders. Thus, if the seller still chooses to list with a reserve price, that is his/her choice. Likewise, bidders are of course free to choose which auctions in which they will participate. In general, we do feel that reserve price auctions are a good way to gauge the demand for an item. Reserve price auctions are really NOT that different from a classified ad, where a seller would set an "asking price", and then receive offers. In this analogy, the reserve price auction would have a hidden asking price, but the offers would be public. On the other hand, a classified ad would have a public asking price, and the offers would be hidden. Thus, we might argue that reserve price auctions are actually better for the buyer, than a classified. For example, let's say Joe had a reserve of $2500 on something, hidden of course, but the highest bid only reached $1500. Now, the bidders have a strong bargaining point with the seller, something like "You can see that $1500 is about the market value, let me offer you $1700...". On the other hand, if Joe had listed the same item in the classifieds with a $2500 asking price, then who knows what the highest offer might have been? In this case, the buyers are making "blind" offers, trusting Joe if he said "Well, the best offer so far is $2000". One last scenario is the classified with a $2500 asking price, where buyers become offensive in their comments or in their offers. Like "You're a XXXXXX if you think you can get $2500", or "I'll give you $500". Instead, at a reserve price auction, the second commenter could have bid $500 without offending anyone, and the first commenter would have no reason to comment. So in conclusion, Audiogon.com does not encourage reserve price auctions, but we think they are NOT deceptive, and if anything, they are a good bargaining tool. They are certainly a little more fun than a boring classified. :)

Audiogon staff: Thank you very much for taking the time to respond to this thread. I sincerely mean that. On the whole I have been very pleased with my experiences, both as a seller and a buyer, on Audiogon. I have been a long-time audiophile, and have also sold high-end gear, so my opinions have been shaped through a lot of experience. I understand very well what "high bidder" and "reserve price" means. In the example I listed above, there was no notice of a reserve price, or "reserve not met", following my bid of $300 the TEAC mini-system auction. A day later, there was a "reserve not met" notice on the auction page next to my bid. I'm not accusing anyone of dishonesty, but it did seem odd.........A final point: I dislike the reserve price approach because it's too gamey. High-end audio used to be a hobby and avocation for many of us, and there was a shared sense of honesty and comaraderie. I find it very distasteful to go through the marginally honest and misleading process of bidding that characterizes the whole notion of "reserve price". If sellers want to play that game, let them do their business on E-Bay. I would hate to see Audiogon become just another cheesy auction site. Thank goodness for the classifieds you have!!!