4 ms·

I can speak to some of it. When items like this go up for auction, sellers often set a "minimum" price. If that isn't met, the item isn't sold and remains the

I can speak to some of it. When items like this go up for auction, sellers often set a "minimum" price. If that isn't met, the item isn't sold and remains the property of the original owner. As you've highlighted, the reserve price doesn't have to be guaranteed by the auction house. So if this price isn't met, nobody gets the item (unlike the standard which is that the auction house will buy the item for the reserve price). The 50% is probably the guy rounding the estimate to make a point. As for why 64.25 wasn't enough but 70 would have been, I don't know. My understanding is that a lot of pieces sell for above their high estimate, so I'd guess that the seller was expecting/hoping for that? I do also think that 35% versus 40% matters a lot more when that difference is 6 million dollars in absolute terms.

thatguy0900 1y ago
Why even start the bid at 59 if 70 is the lowest you'll accept
- mattzito 1y ago
  Because as people start bidding they become invested in the outcome, and can often be convinced to go higher than they otherwise would. The trick is to set it under the minimum price the right amount that you can get multiple people bidding on the same item, each topping the other by smallish amounts. That way it doesn’t “feel” like you’re crossing the right price - “I’m already in for $60m, 1 more million is like 2% more, and then I beat this other person for something valuable”
  - jkestner 1y ago
    Kickstarter works like this too. If you know anything about fixed manufacturing costs, when you see hardware projects with a 4-digit goal, you cringe. Some have other sources of funding, but the reason you set an artificially low goal is that it 1) gets people more excited when they see the % of goal go to 800% or 3000%, and 2) people are more inclined to back a project that's already hit its goal, regardless of how crowdfunding works.

thatguy0900 1y ago

Why even start the bid at 59 if 70 is the lowest you'll accept

mattzito 1y ago
Because as people start bidding they become invested in the outcome, and can often be convinced to go higher than they otherwise would. The trick is to set it under the minimum price the right amount that you can get multiple people bidding on the same item, each topping the other by smallish amounts. That way it doesn’t “feel” like you’re crossing the right price - “I’m already in for $60m, 1 more million is like 2% more, and then I beat this other person for something valuable”
- jkestner 1y ago
  Kickstarter works like this too. If you know anything about fixed manufacturing costs, when you see hardware projects with a 4-digit goal, you cringe. Some have other sources of funding, but the reason you set an artificially low goal is that it 1) gets people more excited when they see the % of goal go to 800% or 3000%, and 2) people are more inclined to back a project that's already hit its goal, regardless of how crowdfunding works.