Adam,
Are you bringing any machines to the auction? If you are going to, then what will you do when the machine you think is worth $1000 seems to be selling for $200? Are you going to just let it go or are you going to bid against it and hopefully get it to a price where you feel comfortable selling it? Since there are NO reserves set against these machines how do you expect the owner to get what they need to?
If the auction companies starting using reserves then I can see having a problem with operators bidding up their own machines, if not then what do you do? I agree that these kind of practices should not be allowed, but give us another suggestion in order to make most people happy.