Understanding Buyer Psychology

[fi.ra]

I think one of the most profound studies of human nature would be to understand why, when buying, buyers make offers the way they do. eBay essentially would act as the best host to study buyer behavior. 

A good example is an item I have for sale at the moment. I am selling an Italian outerwear item. It's an almost $1100 coat. NWT. I have a price of $475.00 + $9.95 for shipping. 55% less than the tagged price. Yet, buyers are making offers for $125, $150 and $175. My question is why? I am not concerned as a real buyer will come along, I sell high end items usually from my personal collection and always find the right buyer, but if 10 come along, 8 seem entirely oblivious. I'm a buyer myself occasionally. If I came across the listing, I would process it as "wow, that's an already really good deal, but I'll see if I can get it for $400, and that would be a steal, if so". That's what I expect from most people. Does the buyer that made an offer for $125 really, deep down think, that the seller would accept it? I know a lot of people are stupid. Not biologically stupid, but like absolutely washed out stupid. The filament in their lightbulb is cooked. This is what I want to understand. Why, do people make these offers? One of the offers, I countered, just to see where it could go and the buyer increased his/her bid by $6.00. Like, the 1st attempt didn't work and they actually thought, maybe if I throw another $6.00 in the pot, that could do the trick. At a total price of 90% off and another 35% less than my 55% discount. 

Anyway, there's the rant. Just wanted to hear a few thoughts, maybe get a few chuckles in the process. What I do know is there are a lot of really stupid people out there and this is not a class or rich poor thing. I don't want to discuss the merits that $475.00 is expensive for many people, etc. I'm talking about how buyers make their valuation of many items. How do they establish value, especially when lacking any relevant comps. Are they just throwing spaghetti against a wall to see what sticks? 

[gagnon234]

My uneducated guess would be they're hoping you're desperate for money. 

However, that wouldn't explain why I've been getting offers that wouldn't even begin to pay for the shipping . . . much less fees and initial cost.  "Oh yes, I would be more than happy to go in the red for you."

For those who will tell me to set it where I don't get offers below a certain amount . . .  Don't offers, in general, get you pushed up a notch or two in the search? Here's hoping.

[dhbookds]

People wager a couple of bucks in a lottery and have a one in 250+ million chance of winning......so why shouldn't they take 30 sec to make an low offer on something?.....

And how are you to know how many times it may have worked with other sellers?  Classifying people as stupid........well........my opinion..... that may be ...........

If you don't want to see the low balls, set b/o to the lowest you'll take on the item and relieve yourself of reviewing them.......

jmo

[the*dog*ate*my*tablecloth]

It doesn't really matter what you paid for the coat or what the original price was. What will buyers pay? Are there any comparables? Maybe you're expecting too much?

[leo*spride]

Since you're only asking for *opinions* and not facts... here's mine:  Some of these buyers are hoping to find desperate sellers willing to accept rock bottom prices for valuable items.  At least, that's what one potential buyer told me several years ago when I asked him why he only offered $20 on a $200 item I was selling.  And though I'm no longer selling, this member's ID is still on my BBL

Meanwhile, as a buyer, I've made serious offers of just a few dollars less than the seller's BIN price... only to be turned down.  The one that amuses me the most:  A seller wanted $27.95 for a box of yellow stickie pads, plus $5 shipping.  I offered him $24.95 (plus I'd pay the shipping), but he still declined my offer.  I went shopping some more & found a seller offering the same item for $23.95 (w/free shipping), so I wasn't overly insulted

So... this eBay feature works both ways, imo.

@fi.ra  ...Good luck with your research!

[fi.ra]

I disagree. There are similar variations of this item available in stores and on other websites. The logical view would be that if you can get something currently selling for $1000, more than half off, that's an already good deal. A budget means nothing to me. I don't care that someone has a budget of only $200 and so because of that, I should sell the item to them. This is probably the biggest and most common type of contact I receive. 

[the*dog*ate*my*tablecloth]

That's why I asked about comparables. If you have comparable items for sale right now, then your answer would be different.

For instance beanie babies sold for thousands of dollars a decade ago. Are they selling for that now? No.

I buy NWT clothing pretty often but always wonder why it is available if it was so great. Except for the people who buy things then lose or gain weight, if it was so great why didn't they wear it? If they bought it on clearance for resale, why was it on clearance?

You have to look at your commodity items through the eyes of a buyer not as someone with money and time invested. Is the item really worth what you think it is worth? If it is really worth that much money, is Ebay likely the place someone with that much money would come to buy it?

[fi.ra]

Fair enough to some points you made. I purchased the item on sale last winter, end of winter, for about 30% off. If I remember, I paid about $650k. I bought it, hung it up, thinking it would be great for next fall/winter. I'm kind of a jacket and outerwear **bleep**, for a guy, and always shopping for jackets. I came across another version, slightly longer, and different shade of blue, but the same manufacturer at 50% off and decided I like that model much more. Part of the reason why I am easily writing off any lose is because I purchased the version I prefer and dollar for dollar I'll be even after it's all said and done. That still doesn't remove why other buyers make valutations the way they do. To me, I would think that for someone who doesn't have as many available funds, but wants luxury, this would be their best opportunity to walk away with an $1100 jacket for maybe $400. Instead as others have suggested and seems most likely is there are purely opportunists fishing for a deal. What I didn't mention in the previous post is that these crazy low ball bids often come from relatively established buyers. Which makes your theory possible, that they are fishing. Kind of goes hand in hand with the abuse thorughout eBay and just trying to exploit any opportunity they can. 

[fi.ra]

And the return period for the first jacket (14 days) had already past...

[usmc*usnmom]

IMO when dealing with commodity items like clothing, electronics,other widely sold items, and designer ANYTHING,  Ebay is supposedly a place to find "bargains" and a seller should be extremely grateful that they were graced with a buyer's offer no matter how low or ridiculous it may be.

Ebay sellers are supposed to not make money--we're here to give out items away, and pay to do so.

Which is why I would never sell clothing, electronics, or anything else mass produced. My old radios and cookbooks do me well, I think, because vintage attracts a totally different type of buyer.

When I sold handmade candles I would run across types like this, only it would be......"Can I get eight (or a dozen)  for the same price instead of six?"  New commodity type item, same old quest for a bargain.

Just a few random thoughts.

[mrv71]

I looked at the coat in question. I'm sorry, but I personally found a similar men's winter coat with a price tag of 500 Euro for sale at local TJ Maxx for $75. Clothes usually are not worth their list price and go down in price pretty fast with the end of season. (And I'm not even talking about the quality of the photos... I personally wouldn't pay more that $200 for it, sorry.)

[fi.ra]

Did someone just suggest they came across an Italian made Herno jacket at TJ Maxx? 

At least my point was proven with this comment. Like many of my bidders, you are very established on eBay (based on rating), which I often find if far more trouble than good. All past issues have come from buyers with less than 5 feedback and almost always the ones with 500, 1k or more feedback. I posit, these are the worst to work with. I like buyers with maybe 20-50 rating as they are far more specific in their searches. Once someone gets past 250, I get very worried as I know they are to tied into eBay and how they think things are supposed to work. Furthermore, kind of too your point, you've probably seen way too much inventor, which throws off your understanding of value. 

As for your suggestion of value decreasing, I disagree, especially for some designers that make similar versions season after season, especially in the luxury market. If you can get an item currently available for 60% off, that is nearly identical, that's a good deal. It does not warrant 90% discounts, as you suggest. I don't know what TJ Maxx is, but I'm guessing they are the dumping ground for final sale items that didn't sell or mostly China made clothing, etc. 

[the*dog*ate*my*tablecloth]

I don't think that's the attitude of buyers at all. I think buyers buy here because they're looking for something nice at an affordable price. They're used to shopping discount because most regular people shop discount now. I don't know anyone who pays full price for things.

I don't think buyers really think about the seller at all. It's the seller's job to think about the seller and the buyer's job to think about themselves.

If people had enough money to pay the prices some sellers expect they would already be shopping at Neiman Marcus and Nordstroms instead of shopping on Ebay.

[the*dog*ate*my*tablecloth]

TJ Maxx carries a bunch of different things. I can often find Ralph Lauren and Jones New York there for less than half the price. Sometimes it's last season, sometimes it's the exact same items they are selling in department stores.

There is some lesser quality stuff there but not the China made clothing you speak of (unless you consider most of the clothing bought in the US is made in the Orient).

TJ  Maxx also has something called "The Runway" which is comparable to Nordstrom Rack where they sell European designer clothes for much less money. Often past seasons, but that's the same kind of item you're selling.

We're not trying to be insulting, just trying to offer you a different perspective.

[doubledz-a2z]

One my store ID I sell ready made (in the USA) very nice sportbike seat cover skins and tank bras.    Less than anyone else and WAY below the cost to have one custom made.  I threw BIN on them all to jumpstart the summer and sold two at regular price then one priced at $41.99 free ship got a BIN of $10 I declined with no comments and no counter.  Then $15.  I declined with no comment or counter.  THen $18.   I did comment that he must not need one very bad and proceeded to bulk edit the BIN out of all my listings.  It is very annoying that they lose sight of what the item is to play a low ball game they are going to lose.  That cover would run $200 if you can even find someone to make one.  Share your rant.  I like auction style on my regular ID and I have great customers.