10/28/2004

The Right Price

I have had my eye on a pair or Wilson Gold Seal figure skating blades for months. They are really the best blades out there...a solid base, tapered blade with a huge toe pick and the rocker is in just the right place to really spring up into your jumps and they have great balance on spins. The world champion wears these of course and I want some too. The problem is they cost around $500. (Boots to mount the blades on are between $500 and $600.)

Last week a pair of these delicious blades (in my size no less) were auctioned off on e-bay for around $150 !!! That is a price I would be willing to pay. What if everything were auctioned off, would more sales/profit be made? If the price these blades fetch on e-bay is this low maybe manufacturers will have to lower their prices? These dream blades are actually made out of the same materials as cheaper blades but they are in high demand because they are worn by skating stars. Maybe they will go out of style and then I can get some.

Demand really does push the prices up on goods :(

8 comments:

Rufio said...

Auctioning is not a new concept, but auctioning on the internet is a newer idea. Ebay and other auctioning websites on the internet have definetly put pressure on companies that are trying to sell directly from the store. I don't think that ebay will change the demand for goods and services though. You can find a good deal on ebay, but you may not also get an unused product. Not all people want used products so not all people will shop on ebay. The demand for goods will stay the same regardless of where you get it, but you may be able to get a good price on a quality product through online auctions.

John West said...

Bianca do you need a skating partner? J/K. Sorry you couldn't get your skates. Ebay is definately a great thing for a lot of people. I've never bought anything from it, but definately will explore it in the future.

Anonymous said...

By auctioning goods, I believe it would have nagative impact on the potential profit an seller could make. People would obviously bid low, and if the good is not in high demand then the seller loses money. It would be interesting to see if a company took that approach, besides the internet auctioning sites.

Max said...

A few years ago I bought, sold, and traded beanie babies online.I was fortunate that I never got burned, but there were many that did. Using an online auction system is similar to the experiment we did using blind quality. It may be tempting for some to advertise an item as high quality when it is not. This would limit the number of people willing to use the system.

Bryce Larkin said...

Right now there might be a huge demand for those blades. When demand is high for any good the companies want to get all the money they can. But, in a while the price will come down due to new models and more people entering the industry.

Bryce Larkin said...

I think it would be a great idea to auction more goods. We would really see the law of supply and demand come to life.

Maudi said...

Auctions are a great thing because the ending price is what high market value is. People that auction and are good a selling a product can make a lot more money because the price of the good is driven up by the buyers. Auctions also are good tellers of what is popular or trendy. Those types of items sell for a lot more money because they are cool.

Dr. Tufte said...

Typically, an auction market like E-Bay can be expected to help sellers get the most producer surplus (by reducing the surplus that consumers get).

So why are there great bargains out there? It may mean that the costs are lower to sellers on E-Bay. It could also mean that sellers are getting some sort of benefit that is hard to see - perhaps it is really important for people to declutter.