This article will teach you how to set a Buy Now price to an item and explain best practices around setting a Buy Now price.
Offering a Buy Now price for an item allows a bidder to have the option to purchase an item they really want to take home, instead of dealing with a bidding war and the possibility of losing out on the item. A Buy Now item should be considered at the "stopping price" on an item, meaning that once that item is sold, it is not longer available in your auction and stops all bidding on that item throughout the duration of your auction.
Though offering a Buy Now price can be a great opportunity for guests who do not wish to engage in bidding, there are some important things to consider before you set a Buy Now price for any of your items. However, determining the Buy Now prices or deciding which items to use Buy Now on can be difficult. Below are some guidelines for you to consider:
- For items that have a clear retail value, a good rule of thumb is to set the Buy Now price at 150% of the retail value. This means a $50 restaurant gift certificate would have a Buy Now price of $75. However, if you think the item will be popular with your audience, set the Buy Now prices at 200% of the retail value. In this case, the $50 gift certificate would have a Buy Now price of $100.
- We suggest this method because, if you were to offer this item at 100% of the retail price, there is a chance you could lose out on funds. Typically bidding on desirable items will significantly surpass the actual Fair Market Value (FMV) of the item, so if you set the Buy Now price to 150% - 200% of the FMV then it will offset any funds you might have lost out on.
- For items that don't have a clear retail value, such as autographed merchandise or artwork, it might not make sense to have a Buy Now price. If these items are popular with your audience they can often go for more money due to competition and uniqueness.
NOTE: The app will not let a user bid above the BUY NOW price. If the user bids at the buy it now price, the system will record the purchase and put it on their invoice.
If you think bidding will exceed the buy now, price, you should raise this price prior to that happening.
How to Set a Buy Now Price on Items
- In the left-hand menu of your Auction Dashboard, click on ITEMS > ALL.
- Search and click on the item you need to edit or click on the items dropdown at the top of your window to create a new item.
- In the ITEM INFO tab, you will enter your Buy Now Price in the field (see below).
- Once you've finished, be sure to click the blue UPDATE button at the bottom of the window.