Reverse Auction Basics

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Reverse Auction Basics by Jason Treida April 17, 2006	Go Back

Below are a few tips if you are using Reverse Auctions:

1. Allow enough time for Suppliers to quote
2. Allow Suppliers to submit questions and possibly share that information with all bidders
3. Create demonstrations or mock events to allow suppliers visibility into what the real event will be like
4. Collect Preliminary Bids and review them to make sure you are satisfied with the number of bidders and the initial quotes
5. Keep the event under 10 Lots if possible or cascade the bidding times
6. Keep the event on the shorter side of initial opening time and allow for the appropriate time extensions depending on the complexity
7. Monitor the event preferably with Instant Messaging and heartbeat views to make sure the suppliers do not have any technical issues
8. Do not renegotiate final online submitted pricing and award the business!
9. If you are conducting an auction on a product or service that you have already auctioned in the past, try to offer something else to make this offer more attractive such as a longer award period or a larger award possibly combining with other items or services

Of course, this list is not comprehensive but a good representative sample of valuable tactics. A very obvious theme of simplicity and adequate communication with suppliers in one of the keys. The more they know and feel comfortable with the process, the better the results will be for all involved.