What is a Reverse Auction?

[domaingeezer]

Does anyone know what a reverse auction is?

[ezhilraja]

In a reverse auction, sellers compete to obtain business http://en.wikipedia.org/wiki/Reverse_auction

[wmloz]

Basically it's an auction where one entity needs something and a "group" bid to provide it. Entity A bids $100 to do the job, Entity B bids 75, Entity C bids 70, Entity A bids 60 and gets the job. That's basically it.

[biggedon]

Originally Posted by domaingeezer

Does anyone know what a reverse auction is?

enom's club drop was a perfect example


the domains started around $240 i think and dropped until the price reached a bidders amount.


for instance, if i bid $50 on the domain and someone else bids $65, then they would win, when the price dropped to that range.

of course, there was always a "Buy It Now" option thru-out the process until domain was sold....or not.

[wmloz]

"if i bid $50 on the domain and someone else bids $65"

Not to doubt you, and I'm probably missing something cos I wasn't familiar with Club Drop, but isn't what you're describing a regular auction?? Am I missing something?

[biggedon]

Originally Posted by wmloz

"if i bid $50 on the domain and someone else bids $65"

Not to doubt you, and I'm probably missing something cos I wasn't familiar with Club Drop, but isn't what you're describing a regular auction?? Am I missing something?

Hi

different from regular auction, as prices started at $240 and then price dropped $230 > $220 > $210 etc. until sold or not.

whereas regular auctions may start at $69 and go up to the sky

i bought quite a few nice domains at clubdrop

[angel69]

isn't it the same as a dutch auction ? biggedon explained it really well, the selling party starts at some high amt and normally they will not get any bidders, they keep lowering the price until somebody grabs it, so unlike the conventional auction, the seller sets the motion, if that's not it, tell me biggedon, you're one of the mods... lol....

like wmloz i missed enom's club drop, hadn't heard of it, so wmloz, what you described in your 1st post was getting there except the seller sets the price reductions (as long as no one has taken the item), so it's not really the bidders in the driver's seat as i understand it

an acceptable example many may have seen last mo was when .MX was released to the public sep 1, godaddy + other registrars kept lowering the reg fee until people would hand reg more & more names, not a true dutch auction but what they did is comparable

[wmloz]

angel69: I assure you that a reverse auction, whether or not it includes what Biggdon is describing, is for certain what I'm describing because I participated in them when I worked for a company that offered inspection services. The client had nothing to do with the price, only the scope of work. A time was set to start the reverse auction and everybody would submit their price (first submittal prices not know to all). After first submittal, no other vendors were allowed to participate and the lowest bid was "published" per se, and all other vendors had the opportunity to submit a lower offer than the lowest already submitted and the rounds would continue until the one able to provide the service at the lowest price won.

[angel69]

wmloz, dude, chill lol...i wasn't sayin you were "wrong" at all, it's just i thought you were thinkin along those same lines i was ( a dutch auction, also popularly known as a reverse auction, even a counter auction, perhaps its definition has changed, i'll read the wiki article the other guy put up ) ie, when you said people bid on the "prize", whatever it may be, and the lowest bid was chosen i thought you had meant it was the owner (seller) who kept lowerin the price, thus my comment...

and guess what ! we are BOTH correct except we're both thinkin of completely different things, what you described on the last post is also a reverse auction, normally silent just like you said, secret bids, real popular for awardin contracts/jobs, i have seen them, sorry i missed your 1st point !

but...i have taken part in what i was told was a "dutch" auction, which many refer to as "reverse" too, and they are completely different, w/one thing in common, the seller (owner) or whoever starts them has one objective: his botom line, so to make as much money as he can (my example, typical dutch) he goes by takin the highest bid, only he'll go 100 (no one takes it), 90 (same result) and so on till he finds a buyer, that's what i think of when i hear "dutch", whereas in your instance he wants (owner/seller) to spend as little as he can, so he gives the job/contract to whomever submitted the lowest bid ! now i get what you were thinkin of, you were correct (and hopefully so was i ...lol) later.....

[wmloz]

Chill? Dude, I'm cool as the other side of the pillow... ;-)

I don't think I said anything about a "prize", but that's neither here nor there. The concept is clear and I'm sure the guy's question has been answered.

[angel69]

just one thing, i know you (wmloz) never used the term "prize", bro...i was just trying to find a word that would describe whatever the bidders were after, ie hoping to win (even if the employer/owner/seller had begun a counter auction) so, be that an antique clock, a domain or a job/contract, i thought "prize" conveyed the objective of the bidding (or reverse auctioning) more or less ok, and you're right, the original poster's questions should be answered by now