Opening bid and reserve price are not the same thing
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An opening bid starts the bidding process. A reserve is the minimum price the seller has agreed for a sale under the applicable instructions. They can be different amounts. Neither tells you what the equipment will eventually sell for.
A bid increment is different again: it is the step by which bidding can increase under the auction's rules. Confusing these figures can make a seller think a low starting amount is a promised selling price or that any first bid completes the sale.
Follow three fictional lots
These examples use invented figures to explain the distinction. They do not describe any particular auction's fees or contractual terms.
Lot A: reserve met
Opening bid £500 → bidding reaches £1,200 → agreed reserve £1,000 has been met.
The opening figure did not limit the final bidding. Subject to the sale's terms and confirmation, the result can proceed as a sale. The seller still needs to distinguish that result from paid and collected status.
Lot B: reserve not met
Opening bid £500 → bidding reaches £800 → agreed reserve £1,000 has not been met.
There is bidding interest, but the reserve condition is unmet. Ask the auctioneer for the confirmed status and any decision required. Do not label the £800 as seller income simply because it is the highest displayed bid.
Lot C: no reserve
Opening bid £500 → a bid is received → no separate reserve is agreed.
There is no reserve threshold to protect a higher seller expectation. The outcome still follows the actual sale rules. If nobody bids, removing the reserve has not created a buyer.
The arrows simplify the bidding sequence; they are not a complete contract analysis. BidSpotter's glossary provides the common auction vocabulary behind these examples.
Check which number you are approving
Before authorising a catalogue or sale instruction, write the figures beside their labels:
| Label | Seller's confirmation |
|---|---|
| Opening bid | Amount or method for establishing it |
| Reserve | Agreed amount, or explicit confirmation of no reserve |
| Bid increments | Where the applicable rules are published |
| Below-reserve decision | Who can consider a later offer and how approval is recorded |
Avoid an email that says only '£1,000 is fine'. It leaves the recipient to infer which figure you meant. Use the reserve guide for the commercial decision, and the no-reserve guide before authorising a sale without that threshold.
An auction estimate is another separate figure: it expresses an expectation on stated assumptions, rather than setting the opening bid or guaranteeing a result. Likewise, an extended timed-auction ending changes the bidding window, not the meaning of a reserve.
When planning a sale with UK Auction Group, ask for the proposed opening and reserve arrangements in plain language. The useful outcome is a written instruction that the seller and auctioneer understand in the same way.
Explore the auctions and private sales guides.
Sources
- UK Auction Group: asset disposal Checked
- BidSpotter: jargon buster Checked
This guide gives general information. Equipment-specific, legal, tax and safety decisions may need a qualified adviser or competent specialist. The guides do not promise sale prices, fees or results.