We’re all irrational

from Seth’s Blog by Seth Godin

Well, most of us anyway.

This terrific article about a study of eBay buyers and sellers proves it. In some categories, more than 40% of the auctions went for more than the Buy it Now price. Hmmmm. Two tips from the end:

• Set low opening prices. When choosing between identical items, buyers seem to favor whichever auction has the most bids. The best way to grab early bids: Start with a cheap price. By the time a $1 DVD auction reaches $10, it will probably attract more newcomers than a DVD that started at $10.
• Don’t use secret reserves. A study of online auctions with and without hidden minimum prices showed that many buyers steer clear of items with a secret opening price. It’s like that old shopping joke, “If you have to ask how much it costs, you can’t afford it.”

Transparency comes to cars

from Seth’s Blog by Seth Godin

Rick points us to this article about a Saturn initiative. You’ll be able to test drive the competition at the Saturn dealership.

Brilliant.