Reverse,Auctions,Way,Cut,Costs DIY Reverse Auctions as a Way to Cut Costs and Boost Business in


Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in When starting a new work at home business it is very easy to become consumed by it. We spend so much time trying to get the business up and running that we may end up becoming burned out and lose our motivation. There is so much to learn and


Here you are, wondering how you're going to get the money together tohave the gutters fixed in this difficult economy (or get the rooffixed, or whatever it is you need done). You don't want to spend morethan you have to, but you need to get it done before the summer rainscome (or whatever . . . ). And it really doesn't matter whether it'sa down economy or a rip-roaring period of economic growth – we alllike a bargain. It's just that, at present, we're more inclined tosearch out good value rather than just take the first thing thatcomes along.As long as you're not in an immediate emergency, it's worth takingthe time to get several bids on your project. The trouble with tryingto do that yourself by phone is that each person you call is out toconvince you that they're the best and that you should sign up withthem right now. And each one has a good story to tell – or theywouldn't still be in business.So how do you get qualified bids without being subject to thepressure of individual sales people? Reverse auctions are a good wayto go. There are a number of competent reverse auction sites that youcan find, each with its own individual characteristics, but eachbasically requiring you to:Register as a client;Describe your project in enough detail for a service provider tounderstand what's needed and be able to bid on it;Decide how long you'll keep the bidding open;Post the project on the reverse auction website;Sit back and wait for the service providers to bid.Typically, each provider will provide a quote in dollars, and somedescription of their qualifications. The quote is the financialcomponent. Their description of their resources, which can beenhanced by an internal website on some of the reverse auctionwebsites, is their sales pitch as to why you should choose them. Mostreverse auction websites also have a rating system that tells youabout the experience others have had using a given contractor.You observe the bidding and assess who is offering the bestcombination of factors – price, experience, qualifications,reputation, lead time, where located and so on. The system will closethe bidding at the date and time you specified, or, generally, youcan close it early if you want to.A good reverse auction website will make sure you get several bids.First, the site will notify contractors who have registered in thefield that you need work done in. Second, if there aren't enoughcontractors registered in that field, the website will search outproviders in the community and invite them to bid on your project.You won't know the identity of the bidders, since the rules of thereverse auction sites are that both the customer and the bidder orprovider remain anonymous. This allows customers to review bidswithout being pressured into contacting the bidders. Generally thereis a very successful outcome as long as you adequately describe whatis needed.Both customer and supplier need to recognize that there is a legalcontract once the customer has accepted a bid, and both sides areobligated to live up to their end of the bargain. Reverse auctionsites normally are not involved in that contract – they provide amarket place for customers and suppliers to work together, but do notparticipate in the deal, and are not responsible for the outcome.Forservice providers, it's a good idea to register with one or morereverse auction sites, particularly in these difficult times. Byregistering in all the areas of interest to you that are listed onthe site, and in the location(s) that you cover, you willautomatically be notified when something comes up that you could bidon. And by being able to see what others are offering, you canfine-tune your bid by emphasizing your special skills, experienceetc. to get the best chance of winning the job.

Reverse,Auctions,Way,Cut,Costs

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