Reserve Notice Information and Implementation
Auction Nation strives to be one of the most transparent and open auction companies in the industry. We are regulated by federal, state and local laws, ranging from how we conduct our auctions to how reserves are implemented.
Everything we sell on the Auction Nation platform is with reserve. The reserve for most items or lots is the starting bid or opening bid. For example, if you enter an auction and see that the starting bid is $5, that means we will not be selling the lot for less than $5. If the starting bid is $100, then we will not be selling the lot for less than $100.
Sometimes sellers request a higher reserve on an individual item, lot, group of lots, or an entire auction. From the seller’s perspective, it can be stressful to auction one or more items (sometimes, the entire contents of the seller’s home or business) with no guarantees of what items will sell for. Auction Nation discusses with sellers their price targets and the reasonableness of the items selling at auction. If Auction Nation ultimately allows an item or group of items to be auctioned with a reserve higher than the starting bid reserve, Auction Nation may use several methods to meet those reserves.
First, before the auction closes, we contact the seller and go over how the auction is doing. Many times, the seller is happy with the overall progress of the sale and nothing needs to happen. If an item or group of items are not projected to meet the reserves, we negotiate with the seller to reduce the reserve price as much as possible to close the gap between the highest bid and the minimum acceptable sale price.
Second, if there is still a gap between the highest bid and the seller’s minimum acceptable sale price, Auction Nation may counterbid on the seller’s behalf, using one or more bidder numbers, until the item or lot has reached a bid amount acceptable to the seller. Counterbidding is a process used across the auction industry. For more information on counterbidding read this article from Auction.com by clicking here.
Third, if an item or lot is not expected to reach the seller’s minimum acceptable sale proceeds, Auction Nation may reduce it’s commission on that item, lot or lots, while continuing to negotiate with the seller to come down on the reserve price in an effort to bridge the remaining gap.
As you can see, Auction Nation uses a variety of industry standard techniques to implement and meet reserves that are higher than the starting bid. All of the foregoing methods are intended to ensure that auctions are successful for all users, including bidders and sellers. Auction Nation is committed to maintaining clear, thoughtful procedures and processes over the bidding and auction process. Auction Nation always encourages our customers to bid on the items they are interested in and to stop bidding when the price is more than they are willing to pay. If you have any additional questions, feel free to contact us by clicking HERE.
