A reverse auction is a bidding technique used in outsourcing between buyers and seller, and in which sellers bid one against each other to win the business. This is something used in the contractor and specially in construction business. Also this is used in roofing business, plumbing, electrical work, and other sub contractors areas of commercial and residential construction. If you want to find out the reverse auction meaning, please read ahead.
When should you do a reverse auction?
Usually a reverse auction is used in the purchase of raw materials, construction materials, components and various materials that are in the construction business. But this can also be done in the house chores, and house services, like plumbing, house cleaning, furniture setup, house renovation and others.
What are some examples of reverse auction?
In general a reverse auction is an auction where the buyers and sellers roles are reversed. Meaning the person posting the auction will be the one that will pay for the service, while the person bidding will be the one getting paid. They actually send a price quote for the service they can provide. Here are some examples of reverse auction:
- construction business or real estate business, or house renovations. It provides a platform for the buyers and contractors/suppliers to bid and offer the services they have
- public companies and government companies, where they post a project they have , and suppliers will post offers for that project. Whoever bids the lowest, wins the project. The bidding can be open or sealed.
- Dutch auction, where the buyer wants to buy X number of products at a certain price, and then the suppliers will bid with their offers
For example the freelancer websites are reverse auction types, where the customer will post a quote request and service providers or contractors will post their offer. We have written a case study about creating a website like upwork (a very well known freelancer type of website)
What is a reverse auction software I can use ?
When it comes to software solutions, we have a few choices. The one we prefer is a reverse auction platform which is online in a website or within an internal network. We do have the project bidding theme, that is a wordpress theme and script. And it will offer you all features that you need, and on top we do have some awesome support too.
Look no further for the software to launch a reverse bidding website, and try our project bidding theme. We have an experience of over 10 years since launch of this product and it has been used within thousands of websites. They were ranging from roofing business, to electrical work, house renovation websites, lawn care services and so much more.