Forward Auctions becoming more popular!

One of our clients primarily uses our eSourcing System to conduct eRFxs and reverse eAuctions. This client is a manufacturing company that had idle equipment they wanted to sell off.

By using our forward eAuction tool, the results achieved from the event were 4 times greater than the targeted amount. Below you will find some points that were sent over from the client, as they stated these were key items that helped in the success of the event.

Bidders

• Intent to Bid decisions were solicited prior to the event.
• Key success factor - selection of interested bidders that could use equipment "as is". No major modifications or retrofitting needed for bidders' use.
• 6 bidders participated in the event.
• It was also the first forward electronic auction that all the bidders had participated in.
• Training provided prior to event. Some of the bidders were not accustomed to using a computer or Microsoft applications.
• No user problems or technical issues encountered by bidders during event.

Tool

• Set up and execution of event went flawlessly.
• Organized and set up equipment by cherry picking lots (total of 10 lots). Each lot was essentially a full (or mostly) complete line for use. Key aspect to set up sale to be most attractive to bidders.
• 15 minute auction with 8 extensions.

End results

• Results were very favorable. Company obtained 4 times the targeted (desired) amount of the equipment.
• Forward auction provided a competitive environment that fostered the best value for the company and allowed company to award several bidders the equipment. Win-win situation for bidders and seller - seller received best price for equipment and bidder was able to purchase equipment at a good value.
• Positive feedback from bidders (even those that did not win a lot of equipment) on the experience.

Strategy, technical and training assistance throughout the event were provided.

Source : www.scanmarket.com

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