reverse auction
Sellers compete lower
A reverse auction is a bidding process where sellers compete to win a buyer's business, driving prices down rather than up.
In a traditional auction, buyers bid against each other and prices rise; in a reverse auction, suppliers undercut each other to offer the lowest price.
Common in procurement and government contracting: The company held a reverse auction for its shipping contract.
- competitive biddingRivals offering prices
- bidderOne who makes offers
- cost reductionDecreasing expenditure amounts
- race to the bottomCompetition through degraded standards
- cost savingsReduction in expenditure
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- auctionsbidding, bid, auctioneer, bidder, hammer price
- biddingbid, bidder, bidding, opening bid, winning bid
- procurementprocurement, purchasing, purchase order, bidding, subcontract
- revenue streamsad revenue, subscription, commissions, fees, direct sales