I know that sites and domains are being sold through the auction style through the concept of starting bid and BIN which works fine for me.



But I've seen some auction bringing in the concept of 'Reserve Pricing' which I take it that the seller would not offer the item for sale under the reserve pricing.



What I don't understand is that some set starting bid at $1, a Reserve Pricing of $200 and a BIN of $250.



So what is the point of having the starting bid set so low because if bids come in at less than the reserve pricing, the seller would not sell. The potential buyers knows full well that what they bid will not happen.



So why not just set the starting bid at the reserve pricing so that no time is wasted ?



I understand if there is no reserve pricing so any price can be accepted.



I hope I am missing something really obvious here.
More Information:
  1. Conditions of Sale The legal terms that govern the conduct of an auction, including acceptable methods of payment, terms, buyer's premiums, possession, reserves
  2. By placing order on Everest Auction online Site, you are agreeing to be bound
  3. From "Ad Valorem" to "Easement", the B4A County Tax Sale Glossary of Terms includes definitions to all the key tax sale auction terms
  4. Public sale of property at auction by governmental authority, due to nonpayment of property taxes
  5. The Seller reserves the right to announce additional Terms and Conditions of the sale prior to or during the course of the Auction
  6. Also referred to as: public auction, auction sale or sale
  7. File Format: PDF/Adobe Acrobat - Quick Viewauctions of movable property and accepts orders for purchase and sale by auction
  8. By bidding at this auction each purchaser and bidder agrees to be bound by these terms and conditions of sale
  9. The goods listed in the Auction List will be available