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

  • Nashville Elementary School Receives LEED Gold Certification

    Goodlettsville Elementary School, part of Metro Nashville Public Schools in Nashville, Tenn., recently achieved LEED Gold Certification from the U.S. Green Building Council (USGBC), according to a news release. The 81,750-square-foot school opened in 2023 and was designed by Goodwyn Mills Cawood (GMC).

  • Year-Round Schools Require Year-Round Indoor Air Quality Planning

    While many schools are out for the summer, year-round schools follow a more “balanced” schedule with shorter, more frequent breaks spaced throughout the school year. Even though this offers educational benefits, these facilities have less downtime for building maintenance. This can become an issue when facilities managers overlook the importance of routine HVAC maintenance and air duct cleaning services.

  • UT-San Antonio Begins Residence Hall Renovations

    The University of Texas at San Antonio recently began a $6-million renovation project to one of its residence halls, according to a news release. Originally completed in 1986, Chisolm Hall measures in at 120,860 square feet and is the oldest and largest residence hall on campus.

  • Back-to-School Playground Safety: 7 Common Hazards to Look for After Summer Break

    As summer break comes to an end, school administrators have plenty to prepare before students return. While classrooms, hallways and common areas often receive attention during all the back-to-school preparations, the playground should not be overlooked. Months of weather exposure, storms, and regular wear can leave behind hazards that may not be immediately noticeable.