The article "Save Money With Reverse Auctions" talks about auctions, it was written by Richard Verker.
By at that moment everyone knows how eBay works.
You list an item you’re trying to sell, and buyers place bids on it. Afetr a predetermined length of time (commonly seven days), the highest bidder “wins” and gets to pay that much money for the item. That’s great for sellers, but what about buyers?
Wouldn’t it be better if sellers competed for a buyer’s business, instead of the other way around?
That’s where reverse online auctions come in.Reverse online auction work in the opposite way from eBay-style auctions.
A buyer
lists the item he’s looking for, and sellers compete for his business by offering their
lowest possible prices. In effect, the bueyr is playing hard-to-get.
Rather than
running to eBay and flinging himself at the seller -- “Please sell it to me! Look how
much I’ll pay for it! ” -- the buyer plays it cool, letting the sellers come to him.As a result, buyers in reverse online auction usually pay less
than human being participating in regular auctions. A DVD that’s only worth $12 might
have its price driven up to $20 or more on eBay, due to buyers competing with each
otehr for the right to buy it. With a reverse Internet auction, that price will stay low,
because buyers aren’t getting in each other’s way, artificially driving up the price.
Instead, the sellers are driving DOWN the price, because they
want your business.There are two ways of running an auction online: open and closed.
In an open
auction, all the bidders know where they stand in the bidding, i.E., wehther they’ve
been outbid. In a closed auction, each bidder only konws his own bid.
Therefore, he
must put forth his really hottest offer at once, since he won’t be able to make a better
one in response to someone else’s bid.Sellers know that e-procurement -- where items are bought, paid for and sold over
the Internet -- is more lucrative than traditional brick-and-mortar stores simply
because there is fewer overhead costs. So it’s in their hottest interest to attract new
online customers, and they know one way to do that is to participate in reverse auctions on the Internet.Richard Verker has been writing business articles for 15 years. After studies in general
economy and e-commerce, his work on online auctions makes his articles top-rated by
magazines and thousands of readers.
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