We are looking to run our first Dutch Reverse Auction. Would anyone be willing to share best practice information for setting up and running a Dutch Reverse Auction?
I am looking for best practices or strategies surrounding the following:
- What do you recommend setting the starting price at, i.e. 40% off current lowest quote?
- How often should the we increase the price, i.e. every 30 seconds?
- By how much should we increase the price?
What is the maximum length of time the overall auction should last? Should we seek to cap the auction at historical lowest quote after a specific time period, e.g. 10 minutes?
If anyone is willing to share best practice information, I would greatly appreciate a five minute discussion in which I can provide a few more details about the auction we are hoping to run. I would like to solicit your input and advice for our specific effort based upon your past experiences.
Nick Matuszewski
Thank you,