A reverse auction, is when the "auctioneer" tries to buy something at the lowest price, instead of trying to sell something at the highest price-- hence the term "reverse". A limit that our auctioneer is willing to accept on the value of a bid is set in advance. Bidders register with our auctioneer and receive a vendor code with which they can place bids as many times as they desire. The program allows each bidder to see all other bids, but sets a time limit on the bidding process.
In the sample program available at the link below, we pretend to be a manufacturer looking to purchase a raw material for use in our factory. We want to buy a contract to purchase a fictitous material called powdered vintner. The description of our purchase is available under the Contract link in our program. Vintner sells on the open market for about $2.00 per pound, so we have set the limits on the value of bids we are willing to accept at between $1 and $2 per pound. We have also placed a deadiine on the time that bids will be accepted, and the time remaining is displayed at the top of our auction page.
Now that we have at least tried to explain the process, click here to go to the Reverse Auction Program where you can place your own bids to provide us our raw material needs. You can pretend to be any one of the five vendors designated by the codes to the left of the bar chart. The bar chart indicates current bidding status of all vendors and the "Bid Chart" displays all bids on a graph. Remember, low bidder takes all the business!
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