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Reverse auctioning system launched in Australia

Reverse auctioning, a new way of buying and selling, has been introduced to Australian markets by Lowestbid, a recently launched Australian company.

The reverse auction process is simple. When a business has something they need to buy – it could be materials such as cables and accessories, construction products or even services such as road haulage, the potential buyer provides Lowestbid with just one set of specifications.

Suppliers are then canvassed by Lowestbid from all over the country to take part in the reverse auction.

Lowestbid CEO James Chisholm said the method beat geography and brought buyers and sellers together who might otherwise never do business.

“It allows suppliers in regional Australia to compete more easily with metropolitan companies,” he said.

To start the reverse auction process, the buyer first nominates a realistic starting price which appears on the Lowestbid website. Lowestbid nominates a three hour period where bids can be accepted via the Internet, fax or mobile phone or short-messaging.

“Nothing much happens for two hours and fifty-five minutes, than all hell breaks loose. It’s quite exciting and you just watch the screen as the price drops.

“The suppliers don’t know the identity of the other bidders or the buyer.”

Matthew Glascott of Glascott Landscaping bought 600 cubic metres of specialised soil through Lowestbid and said the concept was brilliant.

“The time saved was incredible. I sent off one set of specifications and then sat back and waited,” he said.

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