Use of Reserve Price

In your competitive biddings, if the process conditions the display of competing bid prices upon surpassing a particular predetermined price level, it is termed as the use of reserve price, and that price level is called a reserve price. A correctly determined reserve price will help you in increasing the competition in your competitive bidding processes.

How does the Reserve Price proceed?

In the fields for which a reserve price is determined by you, your suppliers do not see any competing bids information until the reserve price is exceeded. Please find below the supplied bidding screen. In this example, as you also note, the firm cannot see any competing bids information as its bid price is higher than the reserve price.

The firm may have access to the competing bids information only after exceeding the reserve price. The following item shows the screen of the same example when the supplier has exceeded the reserve price and therefore has a right of access to the competing bids information.