Archive for the ‘reverse auction’ Category

Reverse Auction Site

reverse auction | Posted by rosita dian
Feb 23 2010

Reverse Auctions : Tips For Successful Bidding

Executive summary about reverse auctions by Patrick Hesselmann

reverse auction sites

Reverse auctions provide an excellent opportunity for increasing your business, particularly in the service sector. The website will notify you of projects posted on a reverse auction site in your area of expertise. You review and bid on those that interest you, and increase your business as you become more successful in your bidding.

To get started, register with selected reverse auction sites that cover the services you provide. Some reverse auction websites offer the opportunity to include a description of your services, licensing, insurance, bonding, how long you’ve been in business and the like.

Most, however, insist that you do not list your contact information, so you’ll need a user name that is different from your business name, and you won’t be able to list phone, e-mail or website address.

This prohibition on contact information stems from two basic causes: First, listing your contact information is an invitation to the customers to contact you directly  and subject themselves to your sales pitch before they have had an opportunity to see what other offers the posting might bring out. Second, reverse auction websites normally charge a small fee for successful transactions, and if the business is completed off line, the website will see itself as being short-changed.

So,  how should you respond to a posting for something you are interested in bidding on? Study the posting carefully. Is there enough information for you to adequately bid? Are the size, quality, time frame, accessibility, and other factors clearly spelled out? If there are details missing, request clarification from the customer.

For example, on a house painting job, maybe the customer didn’t specify the type of paint to use. If the sizes aren’t clear, request the specifics you need. If the geographic area isn’t specified, request a zip code so that you know pretty closely where the job is located, assuming it’s a physical job.

Be sure you check the complete content of the project listing. You can, as many suppliers of this type of work do, bid a scoping price, in which the specification and scope of the work will be detailed out in a preliminary contract. Once the full specification is available, you can then bid on the resulting specification.

Check out the other information on house for auction or estate auction

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Reverse Online Auction

reverse auction | Posted by rosita dian
Feb 19 2010

The Use Of Reverse Auctions In Business – Frequently Asked Questions

Executive summary about reverse auction by Selectsourcing

online reverse auctions

In business the use of online ‘e-sourcing’ tools such as e-tenders and e-auctions is becoming commonly used to help buyers achieve rapid cost reduction. Cost savings can be considerable – on average 14% and lead times for sourcing projects reduced by up to 70%.
e-Sourcing is the use of internet technology used by purchasing professionals to find suppliers and negotiate prices for a wide range of goods and services. This typically includes activities such as supply market analysis, e- tendering, price negotiations (e-auctions) and contract management.

What are the benefits of using e-Sourcing versus standard purchasing techniques?
Traditionally buyers send out tenders listing the purchasing requirements and invite suppliers to submit prices. Each supplier submits one bid and does not have the opportunity to adjust his or her pricing in response to other bids.

What is an on-line reverse auction (e-auction)?
Reverse auctions are an ideal way for buyers to reduce the costs of goods and services, streamline the procurement process and increase profitability.

What is a fully-managed service?
A fully managed service incorporates a spend analysis of your company expenditure, suitable selection of e-auction categories, strategic category objectives, supplier research, developing lotting strategies, drafting the Invitation to Tender, management of suppliers, hosting the software, training the suppliers (inc helpdesk), managing the e-auction and post event review.

How do suppliers benefit?
Suppliers benefit in the following ways:-
A more fair, more competitive bidding environment
Ability to benchmark prices across their industry
Shorter sales cycles
Wider access to potential business opportunities

Do Suppliers have to pay anything?

No costs are levied to the suppliers for using our services

What types of organisation can benefit from e-sourcing?

Organisations across all industries are benefiting by using e-Sourcing to reduce the costs of goods and services, in order to stay ahead of their competitors.

Reverse Auction For Transportation And Logistics

Executive summary about reverse auction by Electronic Logistics LLC

As a result, auctions, using an electronic reverse auction platform, are growing to be popular and widely spread.

Primarily, it should be said that electronic reverse auctions may lead to a successful cooperation between producers of different goods to transport to various destinations and carriers.

Naturally, it is logical to wonder what both producers and carriers benefit from such cooperation. Furthermore, it is necessary to underline that the reverse auction provides producers with the possibility to choose from a large amount of carriers. Moreover, the open competition stimulates carriers to the improvement of their services and it may also result in certain decrease of costs of transportation for producers.

Also, it should be said that the implementation of new technologies, notably electronic reverse auctions leads to the implementation of high technologies in transportation and logistics at large. Consequently, the probability that producers will find their clients and carrier, which will transport the goods to the destination at possibly lower costs, increases.

Thus, taking into account all above mentioned, it is possible to conclude that the implementation of electronic reverse auctions leading to better cooperation between producers and carriers perfectly demonstrates the possibilities of new technologies applied to business at large and transportation and logistics in particular.

Check out the other guide on auto auction or car auction

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eBay Reverse Auction

reverse auction | Posted by rosita dian
Feb 18 2010

eBay Want it Now and Reverse Auctions: Alike But Oh So Different!

executive summary about reverse auctions by Avril Harper

ebay auction

eBay’s ‘Want It Now’ format has one feature in common with genuine Reverse Auctions, namely that potential buyers post details of items they’d like to buy and wait for sellers to respond with suitable offers.

  • In a reverse auction prices keep on going down, not up.
  • Suppliers compete against one another by reducing their prices until no one is prepared to go lower.
  • Reverse auctions work much like items sold on tender where companies requiring goods or services invite offers from suppliers. All things being equal the lowest bidder wins the contract. There is a downside to reverse auctions in that suppliers might get caught in a bidding frenzy in the same way buyers do in traditional auctions, and end up pricing themselves too low and actually losing money.

Want It Now is a great way to find customers fast but like reverse auctions there are problems to contemplate. Take your time with this new concept, study people placing and responding to posts, learn from their experience and incorporate this new medium slowly into your business.

How the Profit Leverage Effect Works When Using Reverse Auctions

Executive summary about reverse auctions by Douglas Luthringer

When cost containment becomes a strategic necessity, whether due to reduced sales or revenues, high labor costs, or other factors, companies too often focus on cutting costs in areas such as labor and overhead rather than on purchasing.

For example, as an industry average, 60% of all sales dollars are spent on purchased materials, and therefore, small changes in the cost of purchased materials result in large changes to profit. A five percent reduction in purchased costs will result in a three percent impact on net income ~ (.05 X 60% = 3%). In conclusion, a 5% reduction in purchase costs will result in a 60% increase to profits.

Reducing your procurement costs will also help your company in a highly price competitive market. If you can reduce your purchasing costs, then you will be able to lower prices without losing your profit margin.

Fortunately, e-sourcing technologies like reverse auctions have become affordable, easy to implement, and are being used by mid-market and small organizations to control purchasing costs.

Global Online Shopping Gets a Huge Boost From a Unique New Reverse Auction Platform

Executive summary about reverse auctions by George Shears

Given the incredible popularity of online auctions, along with the reality of human ingenuity and the perennial drive to build a better mousetrap, it’s not too surprising that there’s a robust new player in the online auction and global online shopping arenas.

Starting about five years ago, they began laying the foundations for the world’s first reverse auction house. By the end of 2009 this number is projected to grow to over 40,000 licensees and approximately 3.5 million customers. So what possible threat could such a foreign upstart pose to a well-established giant?

The first of these, called the Xpress Auction, entails bidding down the price of a product by 25 cents each time that a customer checks its current price; the second one, the Zero Price Auction, is actually a way to get high-ticket, brand name and brand new products at zero cost; and the Unique Bid auction is a time-limited auction in which the customer who places the lowest unique bid gets the product at that price.

Considering that the net annual revenue of the leading auction house is currently around $8.5 billion dollars, these network marketing Licensees are strongly motivated by a highly attractive financial incentive and will, no doubt, become an increasingly powerful growth factor for the reverse auction business.

Check out the other guide on real estate auction or estate auction

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Reverse Auction Website

reverse auction | Posted by rosita dian
Feb 05 2010

Tips For Posting Successful Projects

Executive summary about reverse auction by Patrick Hesselmann

reverse auction website

Reverse auction websites allow you to post a description of something you need to have done and receive multiple bids on it. You can apply similar thinking to posting an item you want to buy through reverse auction.

To post a project, you will need to sign up with a reverse auction site, and describe what you want done. Potential suppliers bid on the project, normally in an open environment where they can see each others’ bids. You then select the winning supplier based on what’s important to you: supplier rating, price, licensing, insurance, bonding etc.

You and the supplier contract for the work through the website, and then execute the project based on that contract: The supplier performs the work, you pay according to terms established during the contracting phase. At the end, you each rate the other on their performance: Was the supplier competent, timely, tidy etc.? Specify quality of materials. Most reverse auction websites allow you to attach several files. If you do, two things happen:

You become subject to pressure from suppliers who can contact you and try to get you to sign up with them before you see the range of suppliers and bids available;

The website will probably remove your posting because it violates their policies.

How much material will this project need (i.e. Are the dimensions sufficient for the supplier to calculate his materials).

Where is the project? When does the project have to be completed after bidding is closed? Is timing a critical factor?

Do you clarify where the supplier can modify the approach without harming the project? Are there any specific suppliers you would like to have bid on the project? Taking the time to clearly specify the work required, and reviewing your project from the supplier’s point of view will make for a much more successful outcome. Try posting your next project: You may find it an enjoyable and successful experience.

Check out the other guide on reverse auction bid

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Reverse Auctions

reverse auction | Posted by rosita dian
Feb 04 2010

Reverse Auctions – Saving Time, Money and Stress

Executive summary about reverse auction by Patrick Hesselmann

reverse auctions

You’re busy and focused on the primary needs of your business, but you need various services to get things done: Your website designed or upgraded; brochures created for your business; an improvement to your premises. In the first one, where you review a few suppliers from the Google search and contact one, you know little about the supplier and have only your own estimate of what the job should cost. In the second case, you have a rating from the website recommending the suppliers, and you hope that it is useful. The supplier’s prime motivation is to close the deal with you. There’s an alternative to these approaches: Service auctions or reverse auctions.

First, register with a service auction or reverse auction website and post your project in enough detail for someone to bid on without contacting you. The website then will inform registered suppliers in the category and location you’ve specified that a project has been posted. Frequently the website administrators will also assist in the process of getting bids on your project, sending invitations out to further suppliers.

Suppliers review your posting, may ask clarifying questions through your posting, and submit a bid. Generally, these bids are visible to other suppliers, and they compete with each other for your business, asserting their qualifications, emphasizing their licensed status, their ratings on the site, and so on. When the job is completed, you return to the website to rate the supplier, and they return to rate you as a customer (was your description accurate? Did you pay on time? Etc.)

This saves you time in searching for suppliers, gets you enough bids to know what the market is charging for the job you have in mind, and allows you to make a choice without having to face pressure from individual suppliers. Many sites will charge a fee for this service: A membership fee, listing fee, completion fee or a combination.

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