Over the years I have helped clients run reverse auctions and managed traditional brokered transactions to help secure their energy contract. Both methods have their merits and I have had great success with both, it really comes down to the needs of the individual client.
Those who have been involved with reverse auctions for other items or services may have a negative opinion of them. However, with energy they work very well. The difference is that energy is a true commodity, the quality and delivery are the same from everyone, so it ends up as a true exercise in numbers. Most people are sensitive to their incumbent supplier or may opt not to use another supplier from a past experience, but auctions provide you with the flexibility to make the choice that is right for you.
A properly managed auction for a committed client can provide impressive results that are transparent and auditable. It can be very powerful and extremely simple.
Advantages of online reverse auctions are:
→ Transparent process: excellent for government, schools, etc.
→ Effective: Having suppliers fight for your business reduces costs by 3-14%
→ Variety: Run multiple auctions at the same time to test different products or term lengths
→ Flexible: You do not have to choose the lowest price, you can select any supplier or product that is best for you.
→ Simple: Sit back and watch the action
There are no commitments or upfront costs paid by the client to run an auction.
Begin the process by clicking HERE.
