Cases

There are various situations where private auctions can be a very powerful addition to your regular sales processes. Buying a Magister Auctions platform gives your organzation a tool with various possibilities. Get inpired by the possibilities described below.  

SELL YOUR SURPLUS FOR the RIGHT PRICE

When stock becomes obsolete, the exact value of the stock becomes harder to determine. All you know is that the value will decrease over time. But when should you let go? And at what price? How often have you been in a situation that you didn't sell for a certain price because you were convinced there should be a better offer out there somewhere? And then having to sell for half of that price a while later?

That's where an auction can help. Because this gives you the possibility to quickly find the highest offer in the market. After the auction you can quicly see the participation of various parties and use this additional information to determine if the price is right. This will prevent you from not selling, and having to sell later for an even lower price. It may also give you a pleasant surprise when participants push each other to the limit!

KEEPING YOUR BUSINESS RELATIONShips STRONG

Your clients are valuable. You spend a lot of time and effort to build strong relationships with your clients. Although offering some overstock every now and then may seem like a good way to improve your relationship, it actually is not.

When you are making some parties an offer, others may feel excluded. In the end, you have to negotiate to get a fair price. Most of the time, these negotiations will have a negative effect on the relationship; especially if you end up in a negotiation with multiple clients. It's easy for them to feel unfairly treated, even though they are not!

How easy would an auction be in this situation? By inviting clients to your private auction, you give them a chance to buy stocks that others cannot buy. You don't have to negotiate, because your clients bid against each other. And they are much more satisfied with the result, because they know they have purchased the goods for the lowest possible price, after shaking off the competition. Same goes for the bidders that were not the highest: they all had their fair chance and they know it!

So in the end, buyers and sellers will keep their relationships strong.

COMPLIANCE: GET THROUGH AUDITS

Problem: If certain products are tested as quality B instead of quality A, the account manager negotiates a discount with the buyer. Auditers don't approve this way of working. It is unclear why the discounts are as high or low as they are and the accountmanagers are vulnerable to manipulation. Furthermore it puts pressure on the relationship between the company and it's client, because the client did not really want the quality B goods in the first place.

Solution: The quality B products are put up for auction within a subset of the clients. There is now a clear process, and the company gets through its audits.