Difference between Reserve Price and Starting Price in Bidding

Key difference: The words reserve price and start price complement each-other in bidding. But their strategic definition is all together different.

A reserve price is the fixed price which is reserved. A reserve price is said to be as the set price in the bidding process. At the auctions reserve price is first set to a particular amount. This amount is considered to be more privileged because the bidding is started above this amount.

At the bidding if a product has a pre-valued tag of a fixed price than that price is considered as the reserved price. If the bidding process has a product with a reserved price than the bidding amount would be started above the reserved price. The consumer has to bid the amount more than the reserved price. In the real scenario the bidder’s do not reach the reserve price while bidding.

A start price is any-valued price greater then one paisa which is considered to be as the initial price to begin with the auction. The bidding gets initiated with the start price. The start price is considered to be the updated price. The start price cannot be reduced in the bidding.

Start price is the minimum value price, which further extends the auction by increasing the amount. Start price is the initializes of the auction. The product is expected to be purchased more then the start price.

Comparison between Reserve Price and Start Price:

 

Reserve Price

Start Price

General definition

Reserve price is the set price.

Start price is set after the price is announced.

Conversion

A reserve price can be a start price.

A start price is not considered to be as the reserve price.

Initial price

The value is fixed here before-hand.

Value is not fixed prior but fixed afterwards.

Value

More often the reserve price is more as compared to the start price.

The start price is the random assumed price which is generally affordable.

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