Classic bidding

 

The classic sealed-bid format has two distinct parts: a bidding period in which participants submit their bids, and a resolution phase in which the bids are opened and the winner determined based on the buyers selection criteria. In this auction format, each quote will include some profit margin and be directly presented to the buyer as-is.

In a first-price sealed-bid auction, each bidder submits a sealed bid on the platform including gross margin

No bidder knows the bid of any other participant

After the deadline, the buyer review the offers and either accepts his choice or rejects them all

Second price bidding

 

Maximized outcomes guaranteed: the second-price mechanism is one of the most trusted auctions in theory and practice. It ensures, as our Orderfox marketplace grows, that all participants will systematically benefit. The bidding process becomes more efficient, and the quoting process is simplified, which will lead to more RFQs being matched successfully.

Detailed Documentation

Quoting in the upgraded process:

1. Calculate your production costs (including material, labor, manufacturing and shipping costs)

2. Submit them on Orderfox using the provided quote excel template

3. We will present the best suppliers in each category to the buyer, at the best possible price (always above costs!).

Pricing in the upgraded process:

  • The supplier with the lowest offer is presented to the buyer either at the bid price of the second lowest bidder in his category, or if none is available, with an optimal gross margin based on market and buyer information.

  • Bids are grouped within categories defined by buyer preferences, lead time, manufacturing technology, region, etc

  • Offers must be binding (obligatory), with a specific expiry date

  • Secondary bidding and re-negotiating to higher prices after an RFQ is awarded are strictly forbidden.