I don't understand Craigslist marketing

[shrewboy]

I'll start by saying my confusion on this one goes beyond slab-sides, but it's where I've seen two examples lately that confuse me and I needed some place to ask my question. I hope someone here can help. I obviously should have studied marketing instead of economics, because this makes no sense to me.

I first outed this New Yorker in July (http://www.forcbodiesonly.com/mopar-forum/showthread.php?13228-1965-Chrysler-New-Yorker-cl-ad). It was originally for sale at $4400. I know this because I saved the ad on my computer as I was planning to reach out to the seller once I'm in the market, just in case it didn't sell. A new ad popped up this weekend (http://scranton.craigslist.org/cto/4677091850.html), now asking $5900. I figured when it didn't sell for $4400 that the market had spoken, saying $4400 is too much. I guess the market was saying it was too little!

Then there is the 300 for sale near Baltimore (http://baltimore.craigslist.org/cto/4641114876.html). There were a series of ads in other CL markets close to Baltimore listing the car for $8K. There is still one out there (http://smd.craigslist.org/cto/4641072516.html). But now the asking price is $10K.

So is this the new craigslist technique - list at one price, then keep relisting at higher prices until someone decides that the car must be worth a mint, given the new asking price, and buys it? So confused....

 

[bluefury361]

Could be the result of "flippers".

 

[68Bigred]

2nd that.....I followed a few cars in the local area I was interested (not classics). I reached out the the owners who told me they bought the car and did repairs and now asking higher. I also as a hobby flip cars. I'll buy the "mechanics special" repair them and resell. Its fun, buy the cars no one really wants put a few bucks into them and resell still far below bluebook so everyones happy.

 

[67Monaco]

Could be the result of "flippers".

ding ding ding, winner winner chicken dinner.

 

[shrewboy]

Could be the result of "flippers".

I was really hoping that wasn't the case, just based on faith in human nature. If flippers can't even take a couple of new pictures or add some details that justify the new price? Disappointing. The guy jacking up the New Yorker might (MIGHT) do okay at the new price, though not from me. I just don't see $10K for the 300. I can't even tell from the ad if it has AC. A couple of side view pics don't justify it.

 

[shrewboy]

2nd that.....I followed a few cars in the local area I was interested (not classics). I reached out the the owners who told me they bought the car and did repairs and now asking higher. I also as a hobby flip cars. I'll buy the "mechanics special" repair them and resell. Its fun, buy the cars no one really wants put a few bucks into them and resell still far below bluebook so everyones happy.

This I could buy. If they're buying, cleaning, fixing, updating (etc) and reselling, I could see the price increase on the flip. I think the New Yorker is even the same phone number. That's what prompted my question.

 

[polara71]

So they never sold anything before and people are making offers they are refusing..... Now they raise the price expecting to get an offer of their original price......... What a bargain.

 

[KcImperial]

Too many people watch too much tv and think there's supposed to be some kind of silly game with negotiating the price of a car for sale. I sell a lot on CL. I usually list a reasonable price and most sell right away. Sometimes I get a ton of tire-kickers, and lowballers to the point that I'll re-list the ad with a higher price and let them talk me down to my original amount.

 

[polara71]

I'll re-list the ad with a higher price and let them talk me down to my original amount.

That is how its done. Most don't advertise the price they want...expect the bargaining

 

[KcImperial]

That is how its done. Most don't advertise the price they want...expect the bargaining

I only have problems when selling classic cars or anything with a v-tec

 

[polara71]

No price advertised on CL is what the seller should expect to get.... From cars to pet kennels

 

[68-300]

The NY in this case is still for sale by the owner of the previous ads. I'm also following it and each week he lowered the price until the ad was to old. He has re-listed it with the exact same description as 5 weeks ago.

 

[shrewboy]

Sometimes I get a ton of tire-kickers, and lowballers to the point that I'll re-list the ad with a higher price and let them talk me down to my original amount.

OK, that makes sense. Hadn't thought about it that way.

 

[polara71]

So they never sold anything before and people are making offers they are refusing..... Now they raise the price expecting to get an offer of their original price......... What a bargain.

OK, that makes sense. Hadn't thought about it that way.

It does make sense

 

[68Bigred]

As mentioned earlier I will ask my bottom price usually so I dont have to do a ton of back and forth. I stay away from the classics and any make model caddy. Just too much hasstle!!! Also I try to advoid tuner cars (vtec) because all the dam kids ringing the phone. I like to play with 4 door average people cars. Great luck with the Hyundai sonatas and such.

 

[tbm3fan]

Maybe the owner is Filpino. Anyone who travels to the Philippines often, wait that is only me, knows that when business slows down Filipinos raise prices. That is one country where logic is turned upside down I kid you not.

So I'll go with my reason since the ads are identical meaning same seller so must be Filipino. If not then still Filipino because they would also use your previous ad over again. Hey been there, seen it...

 

[shrewboy]

As mentioned earlier I will ask my bottom price usually so I dont have to do a ton of back and forth.

That's why I wasn't thinking about going high to get back to my actual price. I usually list at my price, or maybe a smidge over. I haven't sold cars, but what I have sold has been at, or very near, my asking price.

 

[Fishfan]

So I had a realtor once that explained to me (and I believe it's true for anything) that the deals are usually gone instantly. If a car is listed a long time then it's not priced right. If you're a seller then set a fair price and say "firm". You have a lot of space to justify your price on craig's list. Just like real estate you can provide comparables and such.

 

[Big_John]

One thing that I have experienced is if you price things too low, people look and decide something is wrong. Price it higher and they flock to it.

 

[68plymouth383]

I have bought and sold a bunch of things on craigslist. If you price it fairly they want it cheaper........ If you price to cheap they still want it cheaper!! Or they want to trade you something that's worth half as much.........