Question 1:  You found this antique widget in your grandmother’s attic and you want to sell it on eBay but you’re not sure how to price it.  What’s it worth?

Question 2:  You bought a widget 10 years ago for $200.00.  You want to recoup your investment now.  What should you price it at?

There’s a simple answer to the first question that most people don’t want to hear.  The truth is, you’re antique widget is worth whatever someone will pay for it.  No more, no less.

This is also true in regards to the second question.  What you paid for an item has nothing to do with what it will sell for. 

Worth is determined by the buyer, not the seller.  Oh, you can check eBay to see what similar items (if there are any) sold for or you can research the item on the Web or in one of hundreds of Price Guides out there, in fact you can purchase these guides right here on eBay (Price Guides), but they’re not going to tell you what your particular widget might sell for.

Understand this.  At any auction there are two types of buyers out there, the user/collector and the dealer/reseller. 

The dealer/reseller wants to buy an item at a low enough price to make it worth their while to resell it.  Face it, if they can't make money on  your widget, they're not going to buy it.  Rule of thumb is they want to buy it at ¼ to ½ its market value to the collector/user.  Those looking to pay ¼ the book value are middle men, looking to resell the item to someone higher up the chain.  Those looking to buy at ½ the value will sell to the shopkeeper or other antique dealers who resell to the end buyer - the collector.  At a local auction house there are usually many dealers who know the price range of their cliental and will bid accordingly.  Dealers will be less particular in what they bid on because they aren’t trying to fill a specific need in a collection.  However, many of them do specialize in a particular type or types of collectables, such as toys, sheet music, military, political, furniture, sports or just about any other collecting field you can think of.  Some dealers bid on anything they know they can make money on, others will purchase only according to their special focus.  Often, who comes to the auction that particular day will dictate the price an item goes for.  The same is true on your eBay auction.  Knowing this helps you to set a price that will appeal to the greatest number of people who do stop by.

To market to dealers, take the book price or the eBay sell price, divide it by 4 and start the bidding on your widget at slightly less than the number you come up with.  You should get immediate nibbles on a 7 day eBay auction.

The user/collector will pay the most for your widget.  They are not interested in selling the item on which they’re bidding, they want it for their own use or to add it to their collection of widgets.  At a local auction house there will be fewer of these buyers and they will be very specific on the items they bid on as they know exactly what they want and that is all they will purchase.  The upside to user/collectors is that they will pay more money for what they want.  The downside is that they are very specific in their wants.  It has to be a widget made in 1927; it must be green; it must have two knobs instead of three; it must be made by a particular company; and so on.  If your widget doesn't fit the bill, they won't bid on it.  Amounts listed in published Price Guide books are prices that might possibly be paid by the upper class of this type of buyer.

On eBay, your customer will more likely be what I call the “common” user/collector.  This is a person who buys at yard sales, local auctions, pawn shops, and flea markets.  They won’t spend the kind of money that the “professional” collector who frequents the specialized, big name auction houses and antique stores is willing to spend.  The typical eBay collector/user competes with middlemen dealers/resellers and is looking to add to his collection, but at as low a price as possible.  The user wants to buy the product for their personal use, much as they would at a retail store.  It's important to the user that your widget still works as it did when it was new, but they don't want to pay the price they would in a store.

If you’re going to list your widget on eBay, it’s good to keep all this in mind.  If you list it at the price found in a published guide, you probably won’t get a bid on it unless you’re very lucky.  If the customer doesn't need it or can't afford it, they're not going to buy it no matter the condition, rarity, or look.  You have to appeal to the need and greed.  Neither will you get a bid if you try to recoup the amount you paid for your widget by listing it at or a little less than the price you purchased it for ten years ago.  Use a little sense and consider who’s out there looking for your widget.

Keep in mind that the buyer of your widget might want to resell it outside of eBay.  Price your widget accordingly at the lowest price you are willing to let it go for.  If it’s worth more than that, your item will take on a life of its own during the auction.  If two people that really must have the item start bidding on it, you might see the selling price driven past what you’d hoped to get, but don’t count on that.  If you only get one bid, be happy your widget sold and move on to your next item.  Enjoy the challenge.

More important than the selling price you list is the auction ad you place.  This is where you make it or break it on eBay.  If your ad brings in lookers, they usually turn into buyers and the more potential buyers the more bids you'll get on your widget.  Obviously, the more bids, the higher the price it will sell for.  You've heard me use the phrase appeal to their need and greed.  Good auctioneers, locally or on eBay, know how to do this.  They're pitchmen, regular PT Barnums.  They don't lie, cheat or abuse they're customers.  If they did, they wouldn't remain in business.  But they do turn many a sow's ear into that silk purse with a twinkle of their eye and a roll of their tongue.  Your ads can do the same thing here on eBay. 

In the end, your widget will sell for what someone was willing to pay for it.  And that is its true worth – to you and the buyer.

 Good luck and good selling.