High Pressure Reserve Price Negotiation | Sellers Frustrated as BAT Incentivizes Low Offers
A growing number of sellers are pushing back against lowball offers for reserve prices from auction platform BAT, prompting questions about the company's approach. Many voice concerns that this tactic harms both seller interests and auction dynamics, leading to a potential clash between BAT and its vendor base.
Discontent Among Sellers
Sellers continue to express their frustration over BAT's insistence on low reserve prices. Observations from various forums underscore that BAT holds significant negotiating power, with one seller noting, "Correct. They hold all the cards." Another seller revealed that while no or low reserve can enhance the chance of a sale, it mainly benefits BAT's economics and marketing, stating, "Yes, no/low reserve increases the chance of a sale to nearly 100%."
The Ongoing Struggle with Reserve Pricing
Discussions reflect a mix of sentiments. Many sellers feel pressured into low reserves they don't want. One expressed dismay at attempts to push their reserve lower, emphasizing, "They only want a no reserve or a super low reserve so they get paid 100% of the time."
Additional comments from other sellers indicate those with economic motives face a dilemma, as they seek both reasonable returns and the platform's value. One noted, "They enforce minimum standards of presentation which increases buyer confidence."
The sentiment even extends to suggestions for achieving a better sale. Tips shared include leveraging research to set appropriate reserve prices and enhancing listings by providing more photos and transparency. One seller added, "Pick your own number using some research More pics, transparency and prompt responses will drive the price north."
Questions on BAT’s Sales Strategy
As sellers critique BAT's strategy, they emphasize that the focus seems more on selling quickly than on achieving the highest sale prices. One seller described a sold vehicle, remarking, "When the auction ended, I realized BAT only cared about selling, not the price they got."
Critiques that BAT may prioritize completed auctions over maximizing sales suggest a fracture in seller-platform relations, with some sellers considering moving to alternatives.
Key Insights
🔼 Sellers are increasingly dissatisfied with pressure to lower reserves.
📉 A notable seller concern is BAT prioritizing sold inventory over higher sale prices.
🔄 Growing consideration of alternative auction platforms highlights dissatisfaction with BAT's current tactics.
💡 Sellers requested more involvement in setting reserves based on market research to improve sales outcomes.
As tensions escalate, BAT faces crucial decisions on its reserve pricing policy to retain its seller base. This ongoing conflict reflects broader challenges faced by auction platforms in balancing profitability with vendor satisfaction amid shifting market dynamics.