reserve price: meaning, definition, pronunciation and examples
B2Formal / Technical / Business
Quick answer
What does “reserve price” mean?
The minimum price a seller is willing to accept for an item at auction.
Audio
Pronunciation
Definition
Meaning and Definition
The minimum price a seller is willing to accept for an item at auction; if bidding doesn't reach this price, the item remains unsold.
A predetermined threshold or lowest acceptable amount in a competitive sale or negotiation, serving as a protective measure for the seller.
Dialectal Variation
British vs American Usage
Differences
No significant difference in meaning or use. In both regions, it's a standard auction term.
Connotations
Neutral and technical in both varieties.
Frequency
Equally common in business and auction contexts in both BrE and AmE.
Grammar
How to Use “reserve price” in a Sentence
The auctioneer set a reserve price [of £500] on the painting.The vase failed to reach its reserve price.Bidding started well below the reserve price.Vocabulary
Collocations
Examples
Examples of “reserve price” in a Sentence
verb
British English
- The seller can reserve the right to withdraw the item if the reserve price is not met.
American English
- They reserved the painting with a confidential minimum price.
adverb
British English
- The item was offered reserve-price, attracting cautious bidders.
American English
- The property was sold reserve-price, ensuring a fair minimum.
adjective
British English
- It was a reserve-price auction, so the seller was protected.
American English
- The reserve-price system is common for online marketplaces.
Usage
Meaning in Context
Business
Standard term in auction house catalogues and sales contracts.
Academic
Used in economics, market theory, and game theory papers analysing auction mechanisms.
Everyday
Rare in casual conversation unless discussing auctions or selling high-value items online.
Technical
A key parameter in auction design, affecting seller revenue and bidder strategy.
Vocabulary
Synonyms of “reserve price”
Strong
Neutral
Weak
Vocabulary
Antonyms of “reserve price”
Watch out
Common Mistakes When Using “reserve price”
- Using 'reservation price' (more common in economic theory) interchangeably in everyday auction contexts. 'Reserve price' is the standard commercial term.
- Confusing it with 'starting bid' – the reserve is often secret and higher than the starting bid.
FAQ
Frequently Asked Questions
No. The starting price is the initial bid level, often set lower to attract interest. The reserve price is the confidential minimum the seller will accept.
Typically, no. The reserve price is usually confidential to prevent bid manipulation, though some auctions may publish it.
The item is 'bought in' or 'passed in' – it remains unsold, and the seller may relist it, negotiate with the highest bidder, or withdraw it.
Yes, the concept is used in online marketplaces (e.g., eBay's 'Reserve not met' notice), tender processes, and private treaty sales with a price floor.
The minimum price a seller is willing to accept for an item at auction.
Reserve price is usually formal / technical / business in register.
Reserve price: in British English it is pronounced /rɪˈzɜːv praɪs/, and in American English it is pronounced /rɪˈzɝːv praɪs/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “[No direct idioms, but related to] 'set the bar' or 'draw a line in the sand' in a commercial context.”
Learning
Memory Aids
Mnemonic
Think of a RESERVE team in sports – they are the backup, the minimum required to field a team. The RESERVE PRICE is the seller's backup/minimum price to complete the sale.
Conceptual Metaphor
PRICE AS A BARRIER / THRESHOLD. The reserve price is an invisible barrier that bids must overcome for a successful transaction.
Practice
Quiz
What is the primary function of a reserve price?