Why Setting Reserves Based on Vendor Needs, Not Wants, Is Key to a Successful Machinery Auction

Posted by Dunn Bros Auctions
www.dunnbrosauctions.co.uk


At Dunn Bros Auctions, we know that selling machinery at auction is about more than just attracting bidders—it's about setting the right expectations from the start. One of the most important decisions a vendor can make is where to set the reserve price.

And here's the truth:

A successful reserve should be based on what the vendor needs, not what they want.


What’s the Difference Between a "Need" and a "Want"?

  • A need-based reserve is the minimum amount a vendor must achieve to cover finance, meet liquidation targets, or align with current market value.

  • A want-based reserve is often influenced by emotion, past purchase price, or unrealistic expectations.

In the plant and machinery world, buyers are savvy, and the market moves quickly. Setting a reserve too high chokes off interest, reduces competition, and increases the chances of no sale at all.


The Pitfalls of Setting a "Want-Based" Reserve

❌ Unsold Items

When reserves are set too high, bidders walk away. No matter how good the item is, it won’t sell if the price isn’t realistic.

❌ Fewer Bidders

Overpriced reserves kill momentum. Buyers won’t waste time on items they believe are out of reach.

❌ Market Damage

If a machine doesn’t sell, it creates a stigma. Buyers remember what didn’t move—and may value it less in the future.

❌ Wasted Time and Resources

Every auction listing includes photography, marketing, and admin. If an item is priced to fail, that investment is lost.


Why a "Need-Based" Reserve Gets Better Results

✅ Higher Sell-Through Rates

More machinery sold, more satisfied vendors, and more cash in hand—exactly how auctions should work.

✅ Competitive Bidding

Realistic reserves encourage more bidders, which leads to stronger final prices.

✅ Faster Turnaround

When items sell first time, vendors move stock quickly and keep cash flowing.

✅ Better Buyer Trust

Regular buyers return to auctions where stock is fairly priced and consistently sells. That’s what we deliver at Dunn Bros.


Our Advice to Vendors: Trust the Process

At Dunn Bros Auctions, we don’t just take listings—we work closely 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

  • Realistic strategies to get the most from your assets

We’re here to help you move machinery—not sit on it.


Ready to Sell Your Machinery?

Let our expert team guide you through a straightforward, professional auction process. We'll help you set a reserve that works for you—and for the market.

Contact Dunn Bros Auctions Today

📧 Email: info@dunnbrosauctions.co.uk
🌐 Visit: www.dunnbrosauctions.co.uk


Dunn Bros Auctions

Plant • Machinery • Commercial Equipment
Straightforward Auctions. Serious Buyers. Real Results.