Can someone in the know explain what purpose is served by starting opening bids at 50-60 percent of the reserve price? I have participated in auctions at four houses and if I recall only one of them does this.
Never seen it so can’t explain it. Which auction house are you saying does this?
Maybe they are looking for momentum combined with appeal mixed with the impression of a bargain peppered with momentum. Oh, I started there.
Like ebay, but here you know the reserve.
What Mike said. Also the idea of once you’re in the game, you’re hooked. For the auction house where I worked (Heritage), the starting bid is the reserve. I found that the transparency model works better and is less confusing and frustrating for buyers.
Very common approach in auction houses to get you in the bidding. On larger items, the seller can often be contacted to lower the reserve if bidding was active (the house has an incentive to push as they get their full commissions if sold). I think I used to see this in Winebid when they first opened.