This will generate more interest in your auction. As I discovered when setting opening bids higher than normal there was far less activity on my auctions. When setting the opening bid at $100.00 or less there seemed to be more interest generated in my auctions. The buy it no w option works from time to time, BUT you'll also run into the person that hits the buy it now option ENDING your auction and not following through and buying your item. For this I say,  set your reserve at your buy it now price and dont use the buy it  now option as it will cost you money sooner or later.