Surplus Auctions on Line

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Surplus Auctions on Line

• Mike Taylor, C.P.M.November 2001

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Online Auctions

• One more trick in the toolbox
• Typical Auction to sell surplus
• Reverse Auction to Buy.

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Auction

• Is already a useful tool for some buyers.
• Reach new buyers
• Competition the more the better
• Dynamic Competition is better than static
  competition

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Functional Issues

• How much to tell bidders
• Making sure bidders have an equal chance
• 3rd party involvement cost
• Cut-off time, submittal method (mailbox rule)

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Rules

• Minimum bid increments
• Must be posted no later than
• Tiebreaker method
• Extensions at the sole discretion of the Seller
• Collusion certification must be submitted

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Caveats

• Do I have to award?
• Would want a way to track bids
• Apparent winner must submit company and proposal
  information sufficient to demonstrate
• Responsibility
• responsiveness understanding of the requirement.
• Seller technical evaluation is final

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Options

• Do it yourself
• Buy the 3rd party software
• Use an auction site

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Good/Bad Example
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Market Decision

• What you are selling makes a difference about who
  you want to sell to
• City of Seattle decide to drop the national
  service
• ..primary benefit seems to be the ability to
  promote unique items to a bigger market, which
  only becomes beneficial when there are few local
  buyers

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www.metrokc.gov/hazwaste/imex/
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www.metrokc.gov/hazwaste/yb/
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www.liquidation.com/
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www.tntauction.com/
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www.industrialauctioneers.org/
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www.auctioneers.org
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www.auctionbiz.com/
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www.net-auctions.com
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www.dist.maricopa.edu/purchasing/pmanual/802.html
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www.law.washington.edu
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www.material.net
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www.napm.org
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www.claruscorp.com/products/auctions.asp
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Surplus sales

• www.liquidation.com/
• www.recycle.net/

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www.chemxl.com
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www.chemb.com/ (I)
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www.chem-etrade.com
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www.ariba.com/
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Surplus Auctions
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Talking points

• Why would I want to do this?
• What is different?
• What makes this better?
• What are the risks?
• How to mitigate risks
• What are some resources?

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Discussion