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WHY DO PEOPLE BID?

Hi. I'm very new at selling on e-bay. What I can't figure out is why an auction item very similar to mine, with the same price and quality, will have many bidders throughout the duration of the auction, while I seem to get snipers, and the prices do not get where they need to be? I can't sell at a loss, and people don't like reserves, so now I'm faced with a higher starting price, which doesn't encourage bidders either. I just can't risk starting off at 9.99 on an item that cost me $100, when I'm hoping to get $200. Do people do this? How do they know they won't lose all their money?
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