What are the auction methods?

Also known as "price increase auction" or "low valuation auction". It means that in the process of auction, the auctioneer announces the starting price and the lowest increase of the auction target. Bidders from the starting price, from low to high for the corresponding price, finally, the highest bidder after three bids unanswered, hammering clinch a deal. But the transaction price shall not be lower than the reserve price.

Dutch style is also known as "price reduction auction" or "high valuation auction". Refers to the auction process, the auctioneer announced the decline of the bid and the auction target, and bid in turn, and the first bidder struck the beat to clinch a deal. But the transaction price shall not be lower than the reserve price.

A combination of English and Dutch auction methods. Refers to the auction process, after the auctioneer announces the starting price and the lowest increase, the bidders compete for the corresponding price, and the auctioneer raises the bidding price in turn, and the highest bidder wins. If no one bids, the auctioneer will reduce the bid and the decline in turn, and bid in turn, and the first bidder will win. But the transaction price shall not be lower than the reserve price.

Sealed price transfer type

Also known as bidding auction. The buyer will submit the sealed quotation (also called tender) to the auctioneer within the specified time, and the auctioneer will choose the buyer. Compared with the above two methods, this auction method has the following two characteristics: first, there may be other trading conditions to be considered besides price conditions; Second, it can be made public or in private. This method can be used when auctioning large facilities or a large number of materials in stock or materials confiscated by the government.

Standard incremental type

This is an auction method in which the number of auction targets is far greater than the demand of a single bidder (this auction method is very suitable for the auction of a large number of overstocked materials). Relationship curve between seller's design demand for auction target and transaction price. After the bidder submits the required quantity of the target, it can become a buyer if it accepts the transaction price quoted by the seller according to its quantity.

Quick Win This is a variant of incremental auction. The bidding of the auction target also increases from low to high according to the bidding ladder. The difference is that when the bidder's bid reaches (greater than or equal to) the reserve price, the auction ends and the bidder becomes the buyer.

Reverse auction

Reverse auction, also known as auction, is often used in government procurement and engineering procurement. Buyers provide the desired product information, service demand and affordable price positioning, and the final product provider and service provider are determined by the seller in a competitive way, so that buyers can purchase at the best cost performance.

This is an auction method designed for a specific auction target. Interested bidders must meet the relevant conditions put forward by the seller before they can become bidders to participate in the bidding.