At Surplus Cascade, we help clients choose the strategy that delivers the highest return. Here’s a simple breakdown of how reserve and no-reserve auctions work — and when to use each.
What Is a Reserve Auction?
A reserve auction sets a minimum price that must be met before the asset is sold. If bidding doesn’t reach the reserve, the item does not sell.
Example: A piece of equipment is listed with a $10,000 reserve. If bidding stops at $9,500, it won’t sell.
✅ Pros of Reserve Auctions
- Protects against underselling valuable or niche equipment
- Gives sellers confidence when parting with critical assets
- Ideal when you have time to wait for the right price
⚠️ Cons of Reserve Auctions
- Can discourage bidder participation
- May result in unsold items
- Requires post-auction follow-up or negotiation
What Is a No-Reserve Auction?
A no-reserve auction (or absolute auction) means the highest bid wins — regardless of the amount. There is no minimum threshold.
This often creates urgency, attracts more buyers, and results in a clean, final sale.
✅ Pros of No-Reserve Auctions
- Encourages maximum bidder competition
- Ensures items will sell — no relisting needed
- Speeds up the sales process with fewer complications
⚠️ Cons of No-Reserve Auctions
- Risk of low sale prices — especially with limited marketing
- Less control over final results
Which Strategy Should You Choose?
It depends on your goals. We recommend:
- Use reserve auctions for high-value, specialty, or mission-critical items
- Use no-reserve auctions for general-use equipment or fast liquidation
We also offer hybrid auctions, where some lots have reserves and others do not — tailored to each asset type and market demand.
Final Thoughts
Both auction formats can deliver strong results when paired with the right strategy and marketing plan. At Surplus Cascade, we help you assess your asset value, buyer interest, and risk tolerance — then recommend the best option.
📩 Need help choosing the right auction format?
Email sales@surpluscascade.com
Visit www.surpluscascade.com for a free consultation.
