During our webinar on Wednesday 24th July, we discussed how participants can use simple tactics and strategies to ensure that they increase their effectiveness when taking part in eAuction events. Here is the first part of some of our key takeaways from that webinar.
What should your objectives be when taking part in an auction?
Simply put, all of the above. Even if you lose an auction, if you’ve conducted it in the right way then you should have received invaluable information on either your competitors, the market, or the prospective opportunity that you can leverage next time. Even if you don’t win the auction, you might still win the opportunity.
Some of the most important factors of ensuring that you win your next eAuction are:
Meeting the expectations of the host
The reason why this is our first (and arguably most important) element to winning an auction is that not only should this be the initial consideration for participants planning to take part in an eAuction event but also because this is often the most overlooked.
Jim Cathcart, the pioneer of ‘Relationship Selling’ famously stated: “Become the person who would attract the results you seek” and this readily applies to eAuction events. Our suggestions for ways to look into this are:
Understand the “Groundworks”
Once you’ve understood what the host is attempting to get out of the event, then you need to assess how the eSourcing event is set up and plan accordingly.
The first aspect is to fully appreciate the specification. Understand what they need, why they need it, what conditions or requirements need to be met. By analysing this you can understand whether there is ambiguity and if you can offer alternative products. Or alternatively, if there are aspects of their requirements that aren’t taken into account in the tender.
The next part of the Groundworks is the structure of the online event. eAuctions can have different elements, the first element is whether it’s “Forward” or “Reverse”. This is in reference to the pricing either increasing (price going up) or decreasing (price going down).
Different eAuction types can have a very different impact on bidding strategies and supplier tactics when taking part in eAuctions.
Examples of different types of eAuction structures:
Other important elements of an eAuction to understand are:
Stay tuned for Part 2 of our blog on Supplier Tactics