Selling livestock on AuctionsPlus has become a go-to option for many producers, but knowing how to set your prices can make or break your success. Recently, data from AuctionsPlus sales has highlighted some interesting trends on how reserve pricing affects both clearance rates and final prices for commercial cattle and sheep listings. If you're looking to optimise your listings, this data offers some practical tips.
In this article, we’ll break down the key takeaways from the data and share strategies that can help you get the most out of your AuctionsPlus listings.
The analysis focuses on the relationship between the reserve price (the minimum price you’re willing to accept) and the starting price of each listing. By looking at the difference, or "gap", between these two numbers, we can see how it impacts both clearance rates and average price per head.
For both commercial cattle and sheep, the results are clear: smaller reserve gaps lead to higher clearance rates and better prices. Listings with a reserve price that’s close to the starting price tend to perform significantly better than those with a large gap.
Let’s dig into what this means for each type of livestock.
Commercial cattle:
In the past three years, AuctionsPlus data shows that commercial cattle listings have experienced a strong correlation between reserve prices set by sellers and the clearance rates of those listings. When sellers set their reserves closer to the starting bid range (within a 0-1% range above starting prices), average prices per head have been high—averaging close to the $2,000 mark. At the same time, clearance rates remain the strongest in this lower reserve bracket, with about 80% of listings selling when reserves are set within 1% of the start price. This high clearance rate suggests that buyers are more willing to engage and bid when there is a clear, achievable path toward securing the lot.
As reserves increase in the 2-3% range above the starting bid, prices stay relatively stable, but the clearance rate begins a slight decline. This trend continues more sharply in the 8-10% and above ranges, where average prices drop below $1,500 per head, and clearance rates drop significantly to the 40-50% range. These patterns indicate a critical threshold: as the reserve gap widens, buyers may lose interest, possibly perceiving the lot as overpriced, and listings are less likely to clear.
For cattle sellers on AuctionsPlus, setting reserves close to the starting bid can increase the likelihood of a successful sale and potentially maximise the average price per head. While setting a higher reserve might feel like a safeguard, this data shows that sellers are more likely to receive stronger bidding engagement and achieve better prices when reserves are more accessible.
Commercial sheep:
Over the past three years, the commercial sheep market on AuctionsPlus has shown similar trends. For listings with reserves set within a 0-1% margin above the start price, average prices per head hover around $150, and clearance rates are again highest, maintaining a rate around 80%. This mirrors the trend seen in cattle— setting a reasonable price for your start and reserve encourages more engagement from buyers, driving more bidding to return better prices and better clearance. Once the gap between start and reserve widens beyond 5%, though, clearance rates and returns start to drop off significantly.
The data for sheep listings strongly suggests that sellers benefit from setting reserves close to the starting price if they want to optimize both price and clearance rates. This approach aligns with buyer behaviour, showing that listings with lower reserve gaps generate more competition and engagement, ultimately leading to more successful outcomes.
The AuctionsPlus data shows that keeping reserves close to starting prices is a winning strategy. By minimising the gap, you increase buyer confidence, drive up clearance rates, and achieve stronger average prices per head. Whether you’re selling cattle or sheep, this approach can make a meaningful difference in your final results.
To take some of the guesswork out of setting prices, AuctionsPlus offers a Price Discovery tool that provides sellers with a rough estimate of the current value of their livestock. By using this tool, sellers can gain insights into recent market trends and more accurately set their reserve and starting prices. This not only improves your chances of making a sale but also helps ensure that you’re pricing competitively for the current market.
As online livestock trading continues to gain traction, knowing how to set competitive, market-driven prices on AuctionsPlus will be key for sellers looking to make the most of the platform. Sellers who approach pricing thoughtfully, balancing market realities with their own needs, are likely to come out ahead. So, the next time you’re listing livestock on AuctionsPlus, remember: a smaller reserve gap can lead to bigger returns and better outcomes, and the Price Discovery tool can be a valuable ally in setting the right price.
Oliver Hoare is a Business Development Manager and Analyst for AuctionsPlus.
