Bids from suppliers in Reverse Auctions: Any psychologist here?

Written by  Itbid Team on 23 June 2015
We have organized a reverse auction to purchase shutters, reducing the cost of more than 2 million per year to 1.65 million with the same suppliers they had!

Conversations with one of the providers that follow are real:

[Before the auction]

We: – Hello, I’m calling to inform you that your client X has commissioned us an auction [… etc …]

Supplier: – Ugh! You know we are a company that has been supplying X for years. Our corporate policy is not to participate in auctions or to low prices, because our margin with X is already very tight. Our costs are what they are and we do not play with them.

We: – We respect your posture. Please give your initial price and if you decide not to lower it during the auction, you will have already fulfilled.

[After the first round]

Supplier: -Are you going to leave us out for being uncompetitive? Give me a chance to move on and I promise I’ll make a superhuman effort to be the best.

[After holding the auction and win much of the business]

We: –  We want to congratulate you for reducing the price by 20% over the current. You know you’ve won the business, but did not you tell me that your costs are sacred?

Supplier: Well, costs are those that … the operations say they are!

Please is any psychologist looking for a theme for its thesis?


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