 How To Bid Smartly on Forward Auctions and Name Your Price listings
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We suggest that you compare the delivered prices on our website with what you normally pay locally. Some farmers feel that 3-5% savings add up over the course of a year. Others look just for deals, and do what's best for their operation. Sellers are in business to make money, just like the rest of us. They are looking to make a profit as well. Be realistic in your expectations of savings and bid accordingly. Remember, you can't get to Paris, France for $100. Paris, Texas, maybe! Bid the price that makes it worthwhile for you and worthwhile for the seller.
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Definitions and Strategies for Forward Auctions
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The Asking Price on our site is the RESERVE PRICE. Buyers can place a bid lower than the seller's asking price, however…
Sellers list products at their lowest price where they can still make a profit. The seller has the option, but not the obligation, to sell below his asking price. Bids below the asking price will be recorded and displayed so that the seller can see what buyers are willing to pay. At the end of the auction, if the high bid is below the asking price, there is no winning bidder.
At no time during the auction can a seller raise his ask price or lower the quantity offered.
At no time during the auction can a buyer lower his bid, withdraw his bid, or reduce the quantity.
Other Technical Rules of the Forward Auction:
In cases where multiple bids exceed the asking price, the following rules will apply:
- Winners will be determined based on the highest price bid with quantity awarded based on the offer of each bidder. However, when there are multiple winning bidders, the winning price ("clearing price") is the lowest price offered among the winners.
- In case of multiple bids with the same price, the bidder offering to purchase the most quantity will be declared the winner.
- In cases where price and volume are equal, the bidder who bids first will be declared the winner.
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Definitions and Strategies for Name Your Price Listings
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Name Your Price Listings
Beyond listing at a reasonable price, we suggest these other tips:
- List more than one packsize. Often sellers have the quantity you are looking for at the right price, but not the packsize. When placing your listing, provide all the different packsizes you could possibly use.
- Accept generics where possible.
- Remember that unlike Forward auctions, the price you are willing to pay includes freight.
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