Pricing Your Goods on eBay

3. Cover your costs. Remember, the cost of your item isn't just the price you paid for it. Take into account all your expenses related to procuring, fabricating, storing,

Pricing techniques
After you determine the fair market value of your item, you will set a starting price for bidders. Your goal should be to create excitement around your item. Getting that first bid is critical, as other buyers are generally more likely to jump in if they see there are already bids on an item. To do this, many sellers prefer to set an opening bid below what the item is actually worth. This can jump-start bidding activity, and ultimately produce a higher selling price.

If there is a minimum amount you will accept for your item, you can set a reserve price that is hidden from buyers. If the reserve price isn't met or exceeded, your item doesn't sell. Reserve prices can help you by preventing items from selling too cheaply, but they can also hurt you by discouraging potential buyers. Buyers will often lose interest in an item if they place a bid and find it doesn't meet the reserve. Because they do not know the reserve price, they may assume the seller is simply asking too much for the item. They may then move on to similar items that they feel they have a more realistic chance of winning.