eBay

fi.ra · ‎07-09-2016

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?

fi.ra · ‎07-10-2016

I'm sorry, Lynn, but I strongly disagree with your line of thinking. If someone puts real $20.00 bills in front of me and says I'll take $10.00, my first and only response would be "I'll take them all". I wouldn't bat and eye or think anything else. My mind wouldn't process the way yours does. And that's totally fine. It's just fascinating that when given the opportunity, people operate the way they do. What if you're offered $20 bills for $10, and as your saying, I'll give you $8, the guy/gal next to you is like, "forget her, I'll take them all for $10"? It's just these fleeting moments of opportunity that people miss.

fi.ra · ‎07-10-2016

...and as a continuation of my comment "establishing value" and using shoes and a house as examples, I would gladly pay $800 for a pair of handmade shoes that some old guy made in London or Italy over a 10 day process with the finest hydes of leather. Yet, I would never pay $1.2mm for a house that cost $250k to build in 2005. There is no logic in why some people value real estate for what they do. When breaking it down hour to hour in work, those shoes actually are worth $800, yet the house value has increased 500% since it's construction. We all know that it's not worth that, but people pay it any way. The shoe purchase to me is a reflection of appreciating craftsmanship and it's very personalized to me, to know that some guy named Luigi in Bologna spent two weeks working on these at his little desk. Yet, I would never purchase a $1.2mm house that cost $250k to build. To me, that's a poor understanding of value. You or me are not valuing the house at $1.2mm because we think we think the materials and time spent are worth that. No, likely paying that because you want to be in the right neighborhood of your choice, perhaps with better schools, but it's also a deeply flawed process when bought on margin as that value is only on paper. It's not real. My shoe purchase is just as much a status symbol as much as the $1.2mm house, I'll admit that, but with two different outcomes.

luckythewinner · ‎07-10-2016

@fi.ra wrote:
Many people can afford to spend $450 for a $1k jacket, but would rather own $2k 65 inch TV, when the 42 inch version I have, that I bought for $350, is just as good. To me, it's just a fascinating difference in psychology when exchanging money for goods

OP,

Those people are probably just as fascinated by the buyer psychology that considers a 42 inch TV to be just as good as a 65 inch version.

This is also the reason why brands like Coach and Gucci coexist with brands the Old Navy and Dockers ... the fact that differnt people have different values.

Unlucky

the*dog*ate*my*tablecloth · ‎07-10-2016

I read yesterday that Amazon is removing their "list prices" because California law believes that they are deceptive practices since nobody ever buys at those prices.

I read about a juicer or something they were selling and had the list price as $800 but were selling at $500. The manufacturer was selling them for $500 on their own site. The item was never for sale at $800, it was just a random made up number.

18704d · ‎07-10-2016

"I'm sorry, Lynn, but I strongly disagree with your line of thinking. If someone puts real $20.00 bills in front of me and says I'll take $10.00, my first and only response would be "I'll take them all". I wouldn't bat and eye or think anything else. My mind wouldn't process the way yours does. And that's totally fine. It's just fascinating that when given the opportunity, people operate the way they do. What if you're offered $20 bills for $10, and as your saying, I'll give you $8, the guy/gal next to you is like, "forget her, I'll take them all for $10"? It's just these fleeting moments of opportunity that people miss. "

---------

There's obviously no one standing next to us in either scenario

or the person next to you will quickly offer $12.00 each and buy them all instead of you.

And obviously if the seller said "no", I'd immediately buy them all for $10.00 ea.

fwiw,

Lynn

Lynn

You love me for everything you hate me for

.

the*dog*ate*my*tablecloth · ‎07-10-2016

The point is you're dealing with Ebay buyers. I have no doubt there are a few buyers on Ebay who are willing to pay for bespoke items. We see them here complaining about their Gucci purses and other things I cannot imagine buying.

I think they're a very small percentage of the buyer pool though. I think you need to find a different marketplace with a higher end type of buyer. Try here for a short period of time then go elsewhere. You MAY get that high end buyer here, but I think they are few and far between around here.

I didn't look where you're selling from but you know it's supposed to be in the 90s in my area this week. The last thing I'm looking for is a coat.

fortys-tech-n-stuff · ‎07-10-2016

Credit has allowed many people to live beyond their means, at the same time inflating prices and distorting the market place. You are right there is different type of buyers, psychology, etc., to me I could purchase a jacket for a few hundred bucks that looks good and is quality, I don't believe that the clothes make the person, but the other way around.

18704d · ‎07-10-2016

Oh, and speaking of seller psychology,

this is a true story:

DH and I were at a sale, where a picker rented a building and every Sat had a big 'junk' sale.

There was a nice piece of woodworking machinery my husband had always wanted but hadn't yet found at the right price,

it was probably around $500.00 new and worth (easily sellable anywhere) $120.00 + used.

We asked how much it was - the seller replied $30.00

My husband lost his poker face and exclaimed "You've got to be kidding!" with wide eyes and a Huge happy smile.

"Ok, I'll take $20.00" the seller replied.

We bought it for 20.00

Lynn

Lynn

You love me for everything you hate me for

.

fi.ra · ‎07-10-2016

While I've disagreed with a few things you mention, I concede you are correct that there are many sellers too that have zero concept of what they are selling. Understanding your product and market, something I do professionally, for a living and exceptionally well, I understand this. I suppose I often give people a little too much latitude or the benefit of a doubt, but many times I should be more literal and take advantage of a situation. But I have to admit Lynn, I don't know if I would personally do what you and your husband did. This is something too many people do and it's something fundamental I can't do when it comes down to person to person. If he said $30 and got confused by your excitement, therefore lowering his price further, and you jump, I might actually say "no, no, you were very fair at $30, we were just excited to see a good deal" At what point does someone hit that limit where you're taking advantage of a situation. In this case, I might be more inclined if say, I was at a big store (although I don't shop many, so let's just say it's Bloomindales in NYC) and I see a $250.00 shirt tagged $25.00 with a zero left off and coded as such, I might actually jump on it in that scenario. Although I concede, when dealing with less savvy people honesty can have an adverse effect and seller might renege on the $30 price thinking its too low. If that were to happen, then I walk away.

tellmemama · ‎07-10-2016

You've brought up some very valid points. In general I very rarely pay retail for anything. I do my due diligence and research everywhere I can to find the best price (not necessarily the lowest) and make my purchasing decision after that. That's what a responsible buyer is supposed to do instead of complaining afterward. As a seller I never use best offer. As a buyer I seldom offer less than 20% of the BIN price. If it is ridiculously overpriced to begin with, I just hit the back button.

I think your comparison of real estate vs. shoes is a little off though. Bespoke items are always going to be made. They aren't making any more land. The 2008 bubble notwithstanding, real estate is almost always going to appreciate in value. Most cars and high end clothes not so much. And absolutely no offense but I wouldn't even look at a 42 inch TV. 65 inch (or more) in a heartbeat.

While I agree with you that good quality is worth it, I'm of the mindset of "if it ain't half off, it ain't on sale" ~The Nanny.

Joe

gardeltango · ‎07-10-2016

In the area of antiques and collectibles many of the low ballers seem to be dealers, though not necessarily ones who sell on eBay. Particularly dealers who have one or two regular customers with lots of money and very often most of their business is finding stuff for their highrollers who may be looking for an item and will offer the dealer say $2000 if he or she can find it for them. Because I've that the higher end the item is the more lowballers come out of the woodwork.

gardeltango · ‎07-10-2016

Edit: "Because I've noticed..."

circa1901 · ‎07-10-2016

@fi.ra wrote:
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.

Seriously? You paid $650,000 for a jacket?

fortys-tech-n-stuff · ‎07-10-2016

That is the thinking that led to the 2008 RE crash, that RE will always appreciate in value. Real Estate will always appreciate in dollars terms as long as the PP of the dollar is being inflated away, but RE follows the same laws of supply and demand.