Skip to main content
Add as a preferred source on Google

Forward vs. Reverse Auctions

  • 09/01/13

In a nutshell, there are really only two categories of auctions — forward and reverse auctions. There may be variations with these based on a number of factors, including the progress of the auction and the criteria for determining the “winner” of the auction.

Forward auctions take the form of a single seller offering an item for sale, with buyers competing to secure the item by bidding the price upward. Forward auctions are far-better understood by the public at large than reverse auctions as to how they operate, due primarily to the fact that they are widely used at the consumer level. They are also widely used when the goal is for the seller to receive the most money possible for the item being offered at auction. Thus, a forward auction should be utilized for sales of goods and services of all types, whether conducted online, offline or a hybrid of the two.

Reverse auctions are the other major form of auctions. In a reverse auction, a single buyer makes potential sellers aware of their intent to buy a specified good or service. During the course of the actual reverse auction event, the sellers bid against one another to secure the buyer’s business, driving the price to be paid for the item downward. Thus, the winning bidder is the seller who offers the lowest price. Reverse auctions are most typically used for procurement by private companies, public sector agencies and nonprofit organizations.

Reverse auctions are not a short-term tactic for procurement operations, but are, in fact, a proven method for long-term management of indirect spend — delivering significant savings and process efficiency. For more information on reverse auctions and the procurement process, visit Reverse Auction Research online at www.reverseauctionresearch.org.

Source: Reverse Auction Research (www.reverseauctionresearch.org)

This article originally appeared in the College Planning & Management September 2013 issue of Spaces4Learning.

Featured

  • Phoenix High School Completes First Phase of Campus Renovations

    Metro Tech High School, part of the Phoenix Union High School District (PXU) in Phoenix, Ariz., recently announced the completion of the first stage of a campus renovation project, according to a news release. The school reopened a series of public-facing business operations spaces including credit union, daycare, floral, cosmetology, and culinary services. It also includes new CTE learning spaces for the school’s nursing assistant, pharmacy, and sports medicine programs.

  • Missouri K–12 District Cuts Ribbons on Two New Middle Schools

    Springfield Public Schools in Springfield, Mo., recently celebrated the completion of two new middle school facilities with ribbon-cutting ceremonies, according to a district news release. The district officially opened the new Pipkin Middle School and Reed Academy on Sept. 3, both of which were funded through the $220-million Proposition S bond program approved by voters in 2023.

  • University of Pennsylvania Releases Design of Future Physical Sciences Building

    The University of Pennsylvania (Penn) in Philadelphia, Penn., recently released renderings of an upcoming 350,000-square-foot Physical Sciences Building, according to news release. The facility was designed by CO Architects and will unite the university’s departments of Physics and Astronomy, Mathematics, and Earth and Environmental Science.

  • Photo courtesy of Kraus-Anderson

    Concordia College Completes Memorial Auditorium Renovations

    Concordia College in Moorhead, Minn., recently completed a $2.5-million renovation project to Memorial Auditorium, a news release reports. The college partnered with Kraus-Anderson for the project’s construction and ICON Architectural Group for its design.