I now list all my items (well, just about all) with a BIN/BO. As for why someone might not accept a "fair" offer for an item and has a price that seems inflated on their item may be related to their concept of a fair price not meshing with yours. And even though I use a BO option on every BIN, my BIN isn't always too high. But sometimes it might be - especially if I'm unsure on the market value of an item, or if I value it more than I should (it happens!).
There are two reasons I go with a BIN - 1) Commonly listed items can fluctuate drastically. Sometimes by hundreds of dollars, for various reasons. Why would I want to risk being that guy that ends up getting the lower end price via auction when I can set my own price and be in control of the sale? 2) Collectors don't live on ebay. They may not be able to check the site everyday, but maybe they are on there once a month or so. Maybe the guy who will pay me $45 for a card that would sell at auction for $10 isn't online the week I list it as an auction and I lose out. BUT, with a BIN, he might surface eventually. I've had this happen many times now with a BIN... I list it as "good til cancelled" cost me .50 cents and it sits there until I end it or agree to a sale or the BIN is hit. Exact scenario above just happened last week. I bought the card at auction for $9.99 and sold it for $45 BIN. The $9.99 was an undersale by about $15-20 in my opinion and the $45 was an oversale, but I'll gladly take it (I would have taken $30 for it if someone offered).
Whenever I get offers, I always respond. Even if it's a decline, I just politely let the person know we aren't even close, so I didn't bother to counter. If they really wanted it, they know we aren't close and they can reoffer something more considerable if they were serious. HOWEVER, I may defer a response for a while... Had a bike for sale for $600. I wanted $550 - I got three offers - $500, $475, $480 - all within about an hour of each other. I left the $500 alone and countered the other two right away at $550. Left the $500 one hanging knowing I'd take it if I didn't hear back from the other two before his offer expired. Well, it may have worked in a psychological way that I didn't think of... he must have really wanted it and didn't want to risk losing it because after about 24 hours with no response from me, he just hit the BIN... made me very happy! Now at $600, I think I was probably quite overpriced. I had received offers of $280-$370 earlier on when I listed it (about a week or so prior). What if those guys were the only ones with interest in it at the time I listed it if I did it auction style? That's a SUBSTANTIAL price difference and maybe the guy willing to pay the $600 might not have seen it during the 7 days it was up for auction. Basically, I'm done leaving money on the table with auctions and I suspect many other sellers are too and that is why you are seeing a very large emergence of BIN/BOs. Also, not everyone is in a position of needing to sell an item for the money. Those that can sit and be patient can make a lot more through BINS than through auctions.
The other beauty with them is I can factor in my shipping and fee costs too and not get burned on those AND I offer free shipping on everything. Helps exposure on ebay, and eliminates the chance that someone who thinks my $2.50 shipping charge is "ridiculous" from dinging me on a DSR, which are also critical to succesfully selling on ebay.
Oh - forgot to add - if I want $30 and someone offers me $28, where other offers have been lower or no offers at all, I'd NEVER counter with $29.50 (or anything) - that's close enough for me... why risk losing a sale for $2?!? Not worth it to me, especially if it's at the upper end of completed sales.
