Comments on: Negotiating Self Defense: Countering The Reverse Auction Tactic http://www.theaccidentalnegotiator.com/negotiation-tactics/negotiating-self-defense-countering-the-reverse-auction-tactic The Premier Blog For Learning How To Use Sales Negotiation And Persuasion Skills Effectively Fri, 03 Feb 2012 09:02:11 +0000 hourly 1 http://wordpress.org/?v= By: Dr. Jim Anderson http://www.theaccidentalnegotiator.com/negotiation-tactics/negotiating-self-defense-countering-the-reverse-auction-tactic/comment-page-1#comment-2000 Dr. Jim Anderson Tue, 07 Jun 2011 11:17:24 +0000 http://www.theaccidentalnegotiator.com/?p=315#comment-2000 Paolo: You make a very good point -- it appears as though this auction was just the start of a longer term relationship. Since you say that your product is highly customized, differentiated equipment the buyer and the seller will have a relationship that exists long after the auction is over. It sure seems as though it is in the buyers best interest to make sure that the seller feels that they were able to sell at a fair price so that the relationship will be a good one! Paolo: You make a very good point — it appears as though this auction was just the start of a longer term relationship. Since you say that your product is highly customized, differentiated equipment the buyer and the seller will have a relationship that exists long after the auction is over. It sure seems as though it is in the buyers best interest to make sure that the seller feels that they were able to sell at a fair price so that the relationship will be a good one!

]]> By: Paolo Tavella http://www.theaccidentalnegotiator.com/negotiation-tactics/negotiating-self-defense-countering-the-reverse-auction-tactic/comment-page-1#comment-1996 Paolo Tavella Mon, 06 Jun 2011 12:32:52 +0000 http://www.theaccidentalnegotiator.com/?p=315#comment-1996 I had my first experience as a supplier in a three-day reverse auction laat week. I have over 20 years of sales and operation experience in the heavy industrial equipment. The product I sell for a leader manufacturer in this field is not "commodity" but highly customized, differentiated equipment. Still, this reverse auction was be adopted - in my opinion not the correct strategy - from the customer who invited three major suppliers for simultaneous negotiation in a hotel last week. Needless to say, it didn't go very well for the suppliers and we lostthe deal. I do not think the supplier awarded the PO hasanything to celebrate either. In any case, based on this experience, I wonder now what the author thonk about responding to a reverse auction with a Dutch auction: you start with your lowest "walk away" price and you increase it every so often, until the customer is either pressed to buy or to tell you you are no longer competitive. It might not help much in getting a deal, but I think it would help to build a reputation and send a message to the other suppliers and buyers. This is for a highly customized product, not a commodity. Thanks, Paolo Tavella I had my first experience as a supplier in a three-day reverse auction laat week. I have over 20 years of sales and operation experience in the heavy industrial equipment. The product I sell for a leader manufacturer in this field is not “commodity” but highly customized, differentiated equipment. Still, this reverse auction was be adopted – in my opinion not the correct strategy – from the customer who invited three major suppliers for simultaneous negotiation in a hotel last week. Needless to say, it didn’t go very well for the suppliers and we lostthe deal. I do not think the supplier awarded the PO hasanything to celebrate either.

In any case, based on this experience, I wonder now what the author thonk about responding to a reverse auction with a Dutch auction: you start with your lowest “walk away” price and you increase it every so often, until the customer is either pressed to buy or to tell you you are no longer competitive. It might not help much in getting a deal, but I think it would help to build a reputation and send a message to the other suppliers and buyers. This is for a highly customized product, not a commodity.

Thanks,

Paolo Tavella

]]> By: What Ebay Can Teach A Sales Negotiator (a sales negotiation requires the negotiator to have good negotiation skills) | The Accidental Negotiator http://www.theaccidentalnegotiator.com/negotiation-tactics/negotiating-self-defense-countering-the-reverse-auction-tactic/comment-page-1#comment-994 What Ebay Can Teach A Sales Negotiator (a sales negotiation requires the negotiator to have good negotiation skills) | The Accidental Negotiator Fri, 26 Nov 2010 05:02:48 +0000 http://www.theaccidentalnegotiator.com/?p=315#comment-994 [...] you can also imagine how a bidder must feel after a reverse auction is over – worn out and potentially angry. Sure they got the deal, but is it a good deal for them to [...] [...] you can also imagine how a bidder must feel after a reverse auction is over – worn out and potentially angry. Sure they got the deal, but is it a good deal for them to [...]

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