How to Run a Business to Business Online Auction
The first step is to pick your category to take to auction., Once you have chosen a category, the next step is to define it and all the items contained within it., The third step is to find and engage the bidders to take part in your auction., At...
Step-by-Step Guide
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Step 1: The first step is to pick your category to take to auction.
This can be a daunting task owing to the complexity the average business faces in their purchased goods and services.
Aim for categories that can be clearly defined and specified, that are likely to attract the interest of bidders, and that have a sufficient number of bidders in the market.
Ideally you would have at least three motivated and capable bidders taking part in your auction. -
Step 2: Once you have chosen a category
Generally e-auction software allows you to upload drawings, specifications, photos, brochures, and any other file that can help to clarify what exactly it is that you are looking to buy or sell, depending on whether it is a forward or reverse auction that you wish to run. , This is known as the sourcing exercise.
Cast your net far and wide to make sure you find the best bidders in the market.
Speak to each bidder in person if time allows as this will give you a chance to establish a relationship and gain an understanding on how you can mutually benefit each other, beyond just a question of price. , This allows you to gain an understanding of any discrepancies in the information you gave them by seeing if certain submitted prices are wildly different.
It will also enable you to get a provisional understanding of which bidders are in the right ball-park and which are either much too expensive or much too cheap, in which case you may wish to have further conversations with them with perhaps a view to eliminate them from the auction.
The final advantage of using this qualification price stage is to assess whether any items that you have included should be removed from the auction, for example if no one has bid for them or if the only bids you have received are not competitive. , Right before the actual auction, you may wish to take your bidders through a training exercise on perhaps a test auction to make sure they know how to bid and to confirm with them exactly what it is that they are bidding for , Most e-auction software allows you to monitor your bidders and who is presently logged on.
Any absent bidders should be chased up by telephone to ensure they are able to take part.
The auction itself would most commonly be set for a 30 minute duration with the ability to auto-extend should a bid be placed in the last few minutes.
Make sure you are present throughout to answer any questions that may be posted during the auction.
Once the auction is completed, be sure to thank all your bidders for their time and commitment to your request and reassure them that you shall give them the feedback that they deserve. -
Step 3: the next step is to define it and all the items contained within it.
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Step 4: The third step is to find and engage the bidders to take part in your auction.
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Step 5: At this stage you may wish to obtain qualification prices.
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Step 6: Now that you have defined what it is that you are taking to auction
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Step 7: have established who your bidders are and made sure that they are all motivated and keen to take part
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Step 8: and confirmed that the items you are taking to auction have received competitive quotes
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Step 9: then you are ready for the auction itself.
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Step 10: The final step is to run the auction.
Detailed Guide
This can be a daunting task owing to the complexity the average business faces in their purchased goods and services.
Aim for categories that can be clearly defined and specified, that are likely to attract the interest of bidders, and that have a sufficient number of bidders in the market.
Ideally you would have at least three motivated and capable bidders taking part in your auction.
Generally e-auction software allows you to upload drawings, specifications, photos, brochures, and any other file that can help to clarify what exactly it is that you are looking to buy or sell, depending on whether it is a forward or reverse auction that you wish to run. , This is known as the sourcing exercise.
Cast your net far and wide to make sure you find the best bidders in the market.
Speak to each bidder in person if time allows as this will give you a chance to establish a relationship and gain an understanding on how you can mutually benefit each other, beyond just a question of price. , This allows you to gain an understanding of any discrepancies in the information you gave them by seeing if certain submitted prices are wildly different.
It will also enable you to get a provisional understanding of which bidders are in the right ball-park and which are either much too expensive or much too cheap, in which case you may wish to have further conversations with them with perhaps a view to eliminate them from the auction.
The final advantage of using this qualification price stage is to assess whether any items that you have included should be removed from the auction, for example if no one has bid for them or if the only bids you have received are not competitive. , Right before the actual auction, you may wish to take your bidders through a training exercise on perhaps a test auction to make sure they know how to bid and to confirm with them exactly what it is that they are bidding for , Most e-auction software allows you to monitor your bidders and who is presently logged on.
Any absent bidders should be chased up by telephone to ensure they are able to take part.
The auction itself would most commonly be set for a 30 minute duration with the ability to auto-extend should a bid be placed in the last few minutes.
Make sure you are present throughout to answer any questions that may be posted during the auction.
Once the auction is completed, be sure to thank all your bidders for their time and commitment to your request and reassure them that you shall give them the feedback that they deserve.
About the Author
Scott Richardson
Committed to making pet care accessible and understandable for everyone.
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