What is still amazing me in the eSourcing and eProcurement world is the lack of transparency of prices. So here is my question of the day:
- how much does it cost to get a full managed reverse auction?
- Which pricing model do you know and/or use (fixed-fee, success fee, mixed…)?
Let me start dropping some figures:
- Eutilia N.V. (currently in liquidation), was – in 2006 – charging €5.000 on average and applying €3.000 minimum. Of course, the amount at stake during the auction was a key driver to set the final price, when this one was not negotiated on a volume basis.
- In 2003, Ramesh Mehta (Moia CEO since 2002) dropped $1.600 as a single line full managed event price and $2.000 for multi-lines. Read his conversation with Debbie Wilson here.
If I find more information about full managed reverse auction pricing, I will add it later-on here on this post.
What about you? What pricing range are you aware of?
Came across your posting as I’m doing some work on this question right now as well. The cost of running e-auctions is hard to nail down. You can pay for a consultant supported model or get the auction “free” under a vendor pay model. A few factors to consider:
– one-off event, multiple events, unlimited license
– software only, or supported service
– spend volume
– vendor pay or buyer pay
Based on some prelininary work I’m seeing one-offs running about (US$’s) $5,000-$10,000 depending on the amount of support provided. Unlimited licenses (run as many events as you want) for $75,000-$200,000.
Over the next couple of months I’ll be taking a look at e-auction pricing and post what I find. Maybe we should conduct an auction for auction services. 😉
Here is one good reverse auction website and the fees are reasonable http://www.oltiby.com/resources-auction-fees
This company’s ExpediSource enterprise web app does auctions plus user-custom survey, RFI, RFP and contract functions. Built around a master supplier portal that automates the prequal process. Includes robust collaboration/notification tools. Sold as client-specific sites with unlimited usage for less than $40K/year.