3 Replies Latest reply on Nov 5, 2014 9:25 PM by mathew27

    Forward Auction tips

    reshma.rav Expert

      Hi,

       

      We have conducted 3 Forward Auctions so far, but have not received the value we were expecting. We posted the auction a day in advance first asking bidders for some pre-bids and then the auction went live the following day. We noticed that the lead bidder simply uses the "Take the lead" option in each lot. In most cases, the other bidders took no interest in competing resulting in a no-competition auction.

      We were expecting a certain return value, but in none of the auctions have we come close to these figures.

       

      What are we doing wrong?

       

      Will a Dutch Auction help?

       

      Thanks in advance

      Reshma D

        • Re: Forward Auction tips
          David Morel Master

          Reshma,  Reiterating what Sundar mentioned in a response to your previous post, competition is the key. If you are not getting many bidders actively participating in the events, I would suspect that they are nor very interested for some reason. It could be the product you are offering for sale, it could be the starting price, it could be the invited participants, lotting of the goods, and it can also be a matter of not giving them enough time to get ready for the event. Have you talked to the suppliers to ask them why they haven't been active bidders?  Do you have any evidence that they are very interested in participating?  A dutch auction my help, but would rather know some of the reasons they have not participated more.

            • Re: Forward Auction tips
              reshma.rav Expert

              Thanks for the pointers David. I will have to go back to my colleagues and discuss these points.

               

              We are thinking of trying a Dutch Auction, but again need some help on this as we have never used this option before. After going through the product documentation, it looks like it may help as it sort of suits the purpose. But I would need some help with setting it up, how to best setup rules, etc. Would you have some sort of template of an auction that I can use?

              • Re: Forward Auction tips
                mathew27 Apprentice

                Apart from what David mentioned consider the following

                 

                - Is there a cartel operating?

                - Is the market condition assessment made correctly (your estimates/expectations may be incorrect)

                 

                Regards

                 

                Mathew

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