At K-BID, our role is simple: convert assets into cash efficiently, transparently and at true auction market value. Setting reserves and starting bids can be a useful tool to accomplish this, if done correctly and with the right research.
1. What We Already Know
No-reserve auctions consistently generate the most participation and often deliver the best overall results. When buyers know an item will sell, bidding activity increases and competition drives higher prices.
Not every seller is comfortable with no-reserve. When reserves are used, they must be set strategically and backed by real auction data, not emotion or retail pricing.
2. What Market Value Really Means
Market value means auction value. It is not retail, MSRP, or what someone is asking on eBay or Facebook Marketplace.
Auction value is what qualified buyers are paying today in a competitive auction environment. Affiliates should be prepared to show sellers this data—actual K-BID sale results and comparable auction outcomes—so they understand what the real market looks like right now.
Helping sellers see the difference between asking and selling price is a key part of your role. It builds trust and helps them make data-based decisions.
3. The Reserve Price Explained
A reserve price is the minimum a seller is willing to accept. If bidding does not reach that number, the item does not sell.
Reserves protect value, but if set too high, they reduce participation and momentum. Industry veteran Mike Brandly notes that high or hidden reserves often lead to fewer bids or no sale, while realistic or no-reserve listings create stronger competition and higher results.
4. Starting Bids vs. Hidden Reserves
There are two main ways to protect a seller’s minimum:
Starting bid as reserve – the minimum acceptable price is visible to bidders.
Hidden (standard) reserve – the starting bid is lower, but the sale only completes if the hidden threshold is met.
Both approaches work, but the right one depends on how aggressive the reserve is relative to market value.
When the reserve is low compared to the true auction value, use a visible starting bid. It builds bidder trust and momentum.
When the reserve is high, a hidden reserve may be appropriate, but expect less activity.
Example: If an item’s true auction value is around $5,000, a public starting bid of $3,500 to $3,750 shows confidence and encourages early bidding. A hidden reserve of $4,250 protects the seller but will likely draw fewer bidders.
5. K-BID Reserve Guidelines
| Estimated Market (Auction) Value (EMV) | Recommended Reserve Range | Notes |
|---|---|---|
| $5,000 | $3,250 – $4,000 (65–80% of EMV) | Standard range |
| $3,500 – $3,750 (70–75%) | Sweet spot | |
| $4,250 and above (85% +) | High risk of no sale |
If an item does not sell in the first auction cycle, reduce the reserve by 10 to 15 percent or consider going no-reserve. Relisting at the same reserve only wastes time and hurts long-term performance.
6. K-BID RNM Policy
K-BID charges a $25 Reserve Not Met (RNM) fee on all items that have a reserve or a starting bid above $5 used as a reserve. This internal fee exists to protect the auction environment that buyers come for and to limit the overuse or abuse of reserves and items not sell,.
Affiliates do not need to mention this specific fee to sellers but should understand it when structuring their pricing and terms.
7. Compensation and Accountability
Affiliates are professionals, and professionals do not work for free.
When a seller wants to use a reserve or high starting bid, it is appropriate to charge a no-sale or reserve-not-met fee to cover your time, marketing, and setup expenses.
Example language:
"We can use a reserve or starting bid to protect your minimum, but if it does not sell, we charge a $150 reserve-not-met fee to cover the marketing and administration time invested. This ensures our team is compensated for the work put in and keeps both of us committed to realistic pricing and results."
This approach positions the affiliate as a professional consultant, not a listing service.
8. How to Talk to Sellers About Market Reality
"Our market value is auction value—it’s based on what buyers are paying right now in competitive auctions, not retail or Facebook asking prices.
We set reserves and starting bids around 70 to 75 percent of true market value. That balance gives you protection while keeping buyers engaged. Setting reserves based on retail or replacement pricing usually leads to long delays and missed opportunities."
9. Bottom Line for Affiliates
No-reserve auctions attract the most bidders and often deliver the highest prices.
When reserves or starting bids are used, keep them within 65 to 80 percent of the true auction market value.
Use a public starting bid when the reserve is low compared to value, and a hidden reserve only when necessary.
Charge a professional no-sale or reserve-not-met fee to protect your time and reinforce accountability.
Educate sellers using real auction data, not online asking prices.
We are here to sell items, not just list them. Your compensation can depend on it.
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