Leawood, KS (PRWEB) June 04, 2013
Regardless of industry, every business has competitors. When small businesses have to compete with larger organizations, they may be doing so at a distinct disadvantage when it comes to getting favorable pricing for the products and services they buy. Larger businesses employ a host of methods to bring down their supply costs, including large purchasing power and the use of reverse auctions.
A reverse auction is a tool used by companies to define the details of the product or service they need, then have suppliers bid against each other in a competitive environment for the ability to sell that product or service to the buyer.
Andrew Chapman, President of Vendorfeud.com finds it's easiest to explain using an example. "Say a real estate developer needs landscaping for an apartment complex they are building. That developer probably has existing relationships with a few local landscapers and has a good idea of what they want. The developer gets three bids and then makes a decision. Did that developer get a good price?
"That's a tough question to answer. The bid from one landscaper might have been the best they could do. The bids from the other two might have been their 'Starting' positions.
"If the Developer would have used Vendorfeud.com, they would have been able to easily evaluate the capabilities of these landscapers side by side in order to make an informed decision. The landscapers would then submit and resubmit bids for a predetermined period of time, driving the price down! Using reverse auctions helps insure you are getting the best price from a supply base."
Historically, eProcurement and reverse auction companies have had a subscription based pricing model, which can easily price out some of the smaller guys. Chapman states, "A lot of small business owners also don't want to deal with the headache of a software implementation. They've got enough on their plate."
Vendorfeud.com is a new reverse auction company that is extremely easy to use and requires no software installation. In addition, a Buyer's cash flow is not negatively affected as Vendorfeud makes its revenue from the awarded supplier, if, and only if, they are awarded a contract. Now, small businesses can get the same great pricing that their larger competitors have been getting for years.
Vendorfeud.com was founded in 2011 with the idea of creating a simple, flexible software as a service (SaaS) website that allows small business owners, sourcing professionals and others to run an eSourcing / reverse auction event, with very little IT knowledge. There is no software to install and there are no updates to download. For more information about Vendorfeud, please visit http://www.vendorfeud.com.