This article describes how to set Reserve Prices and how those Reserve Prices function in different auction types.
About Reserve Prices
Reserve Prices are applied in automated notifications during absentee bidding and timed sales. During absentee bidding, bidders will be notified if their bid is under the Reserve amount. This same alert status will be reflected on item pages and the bidders’ My Bids page. Once the Reserve is met or exceeded, the alert status will no longer appear.
Please note, the alert will not appear until a bid is placed on the lot. At no point in the bidding process are Reserve Prices revealed.
Live Auctions
If you are running a Live Auction (sales operated by a live clerk), there will be no automatic Reserve alerts, as that function is manually controlled from the clerking console.
Timed Auctions
All Timed Auctions can and will implement the Reserve Pricing updates. There is no additional cost or fee to adding Reserve Pricing to your auctions.
Lots with designated Reserves during Timed Auctions will not sell unless the Reserve Price is met. The lot's asking price will continually progress toward the Reserve Price by increasing the asking price in increments of half the difference between the current bid and the Reserve Price.
- As an example, a bidder who places a live bid $500 on a lot with a $1,000 Reserve, will be asked to bid $750 on their next bid.
- Absentee bidders are not progressed to an asking price but are simply alerted that the Reserve has not been met.
- All asking prices influenced by a Reserve will land on-increment.
While Reserve Prices are not necessary for a Timed Auction, they are a great idea if you want to ensure a lot does not sell below a certain amount. Since the Timed Auction is an automated process, lots will sell at whatever hammer price was accepted last. By including a Reserve Price, this ensures a specific lot does not sell below the last accepted bid.
Pease note, all catalogs on the Online Auctioneer plan run automatically as Timed Auctions and will require Reserve Pricing.
Timed+ Auctions
Reserve Prices are required when creating a Timed+ auction on AuctionMobility.
Adding Reserve Prices
Add Reserve Prices Individually
Add Reserve Prices in Bulk
Best Practices
- Reserves should not be higher than the Low Estimate. The Low Estimate should be a reasonable and achievable outcome for the final price of an item.
- Reserves cannot be changed after the item has already sold.
- Lots cannot be canceled post-sale due to them not reaching a perceived value. A Reserve should be the minimum for which a lot will sell. Once the Reserve is met, the bidder has met the base requirement for winning the item.
- Conversely, bidders should not be able to cancel a sale if they bid above the Reserve and won the item at or above that amount
- Buyers should always be informed on our site when there is a Reserve on an item. Utilize the Reserve Price feature to inform bidders.
- It is not appropriate for an auction house to bid on their own items past the Reserve Price.
- Changes to Reserves should be made no later than two hours before the start of a sale.