By Phil Bird, CEO of enterprise auction platform Perfect Channel
The Chancellors Autumn Statement brought some positive news to the UK’s businesses with growth forecasts for 2014 increased to 2.4% from 1.8%. But despite recovery on the horizon, the country’s enterprises remain under pressure — being asked to do more in terms of profit and results, with less in terms of budget and resources.
How then can businesses ensure that they are delivering and maximising all opportunities for profit and growth? New technology has come to the fore to help organisations do just that, and one interesting new trend is the growth of online enterprise auctions.
As a business, pitching your price correctly is imperative to success. Too high and customers won’t buy, too low and you’ll miss a profit opportunity. So why is fixed pricing the norm, which bases pricing solely on the sellers view of how much a specific product should be. What if there was a better way to judge market value and the real price people were prepared to pay?
Businesses are beginning to successfully explore alternative pricing mechanisms. We’ve seen this to an extent with airlines. When it comes to buying a cheap seat on a flight, get in early, and you’ll most likely get the best deal. As supply goes down and demand up, you’ll have to pay more. Known as dynamic pricing, this is a pricing model that consumers understand and many businesses now use to maximise the value of their sales.
Enterprise auctions take this a step further, allowing businesses to sell for the maximum value to the buyer prepared to pay the most. Sellers have the ultimate reassurance that they are reaching the widest possible markets and getting the best price, while buyers have an opportunity to contribute and pay what they believe something is truly worth. Taking auction technology beyond eBay, new technology now exists to develop sophisticated business auctions with far reaching business benefits.
Rather than a traditional, physical event in an auction room, technology now exists allowing businesses to run highly efficient auctions online. Online auctions make the sale accessible to everyone, opening up new territories globally. Goods can be sold around the world and the technology can be customised to different languages, time zones and currencies.
The live online auction market globally is already exceeding $1 trillion. Enterprise auctions have a range of applications and are being used by businesses in many ways to maximise profit and efficiencies. The possibilities are almost endless and literally anything can be sold via auction, whether it’s depreciating assets like cars, clothes and telecoms, highly specialised niche goods, time perishable commodities, or illiquid financial assets.
Technology is playing its part in what humans have been doing for years — bartering — but it also provides businesses with new benefits in an increasingly global market. With recovery on the horizon, auction technology is helping businesses maximise profit and sell for the best possible price.