Definition of Reserve price:
The point at which the buyer and seller are no longer willing to negotiate is the walk-away point. The auction's starting price tends to start lower than the reserve price to encourage bidding.
Common to auctions, a reserve price or a reservation price is the minimum amount that a seller will accept as the winning bid. Alternatively, it is less commonly known as the highest price a buyer is willing to pay for a good or service. The reserve price prevents a bidder who offers a price lower than what the owner will accept from winning the auction. .
Lowest fixed price at which an item is offered at an auction sale and (1) at which it will be sold if no higher price is bid, or (2) below which the seller is not obligated to accept the winning bid.
The price stipulated as the lowest acceptable by the seller for an item sold at auction.
How to use Reserve price in a sentence?
- Sellers choose the duration of the auction and a reserve price - the lowest price theyll accept - that is kept secret.
- A reserve price is not to be confused with an opening bid, which is the suggested starting bid for an auction.
- Some buyers dislike reserve prices as they reduce the chance of them getting bargain deals.
- A reserve price is a minimum price a seller is willing to accept from a buyer.
- If the reserve price is not met, the seller is not required to sell the item, even to the highest bidder.
- In an auction, the seller is not required to disclose the reserve price to potential buyers.
Meaning of Reserve price & Reserve price Definition