Liquidator Genco Increases Average Closing Values By Lowering Starting Bids
Liquidator Genco Distribution Systems recently found a correlation between the starting price of an auction and the winning bid. Pittsburgh, PA-based Genco, which sells surplus goods at eBay, used to start all bids at 30-35% of the original cost of the item. The average auction generated five or six bids and the average selling price was around $60. About four months ago, Genco dropped the starting price on all auctions to $9.99. The result? Bids have gone up and so has the average closing value. The average winning bid is now $75-$80. [Full story: Genco’s new eBay mantra: Start low, sell high - Internet Retailer]
Posted under Online Auctions on May 02, 2003.
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