Setting Auction Reserves: Needs vs Wants

A realistic reserve protects your outcome and increases the chances of strong bidding. This quick guide explains how to set reserves that work for you and for the market.

What’s the difference between a “need” and a “want”?

• Need-based reserve: The minimum you must achieve to cover finance, meet liquidation targets, or align with current market value.
• Want-based reserve: Often influenced by emotion, past purchase price, or unrealistic expectations.

In plant and machinery, buyers are savvy and the market moves quickly. Setting a reserve too high reduces interest, weakens competition, and increases the chance of no sale.

What happens when reserves are set too high?

• Unsold items: If the reserve isn’t realistic, bidders walk away.
• Fewer bidders: Overpriced reserves kill momentum and reduce competition.
• Market stigma: Stock that fails to sell can be harder to place next time.
• Wasted time & cost: Photography, marketing and admin are invested regardless of outcome.

Why a need-based reserve gets better results

• Higher sell-through rates: More items sold first time and more satisfied vendors.
• Competitive bidding: Realistic entry points attract more bidders and stronger final prices.
• Faster turnaround: Stock moves quickly and keeps cash flowing.
• Better buyer trust: Regular buyers return to auctions where stock sells.

Our advice to vendors: trust the process

At Dunn Bros Auctions, we don’t just take listings — we work with vendors to ensure every reserve is market-aligned and results-focused.

• Free, honest appraisals based on real sales data
• Tailored advice on setting reserves that sell
• Practical strategies to maximise results from your assets