Should I Use a Private Auction?
You should always use the private
auction in well thought-out circumstances. For one, many people refuse
to bid on an auction that is listed as a private auction. This is because
bidders cannot tell if an auction is being bid unneccessarily high through
suspicious bidding, so many just won't bid at all.
Private auctions are really
only meant for two circumstances. The first is when an item is highly
collectible and sought after, and there is the danger of another seller
contacting bidders to offer the item to the bidder for a lower price,
effectively cutting you out of the profitable deal, even though you were
the one who did all the work.
The second instance is when
an item could be potentially embarassing for bidders to be bidding on.
When the auction is private, bidders can bid with confidence that friends
and family surfing their buyers list won't see the embarassing items they
purchased. This is done in many adult auctions.
If you use the private auction
option frequently, unless your item fits well in one of the above two
scenarios, you could potentially lose money from bidders who will pass
on your auction and head to another sellers instead.