Say konnichi wa to Japanese auctions
What are Japanese auctions ?
The Host states an opening price and participants have to accept that price level or withdraw from the auction. Acceptance indicates that the participant is prepared to supply at the stated price. When all participants reply to a certain price, the software lowers the price level by a pre-determined amount and again asks participants to accept or decline at the new price level.
This kind of auction continues until there are no more participants bidding.
Why should I use a reverse Japanese auction instead of other types ?A reverse Japanese auction is a tool to be used at the right place and time.
- Cost differences – If there are significant differences in cost base between bidders.
- Different value – If the contract is of different value to different bidders.
- Limited competition – If there is low market liquidity.
- Supplier monopoly – If there seems to be price fixing within a cartel of suppliers.
- Bid shadowing – Incumbent suppliers cannot shadow the leading bid.
Why shouldn’t I use a Japanese auction ?There are a few common objections to using Japanese auctions.
- Unknown – They are relatively new in the marketplace.
- Little feedback – They do not give participants any useful competitor information.
- Rigid – Participants can only accept or decline a bid level.
Why should I use marketdojo ?Our online secure e-Auction software is designed for you to use and achieve success.
- Comprehensive – Our software is packed with all the features required for B2B e-Auctions (different event types and options, document tracking, in-built messaging and many more…).
- Professional support – We offer live chat, e-mail and phone support as standard.
- Return on Investment – Proven to increase results by 18% over traditional approaches.
- Market comparison – No other e-Auction software on the market offers the same value.