Yes that’s right. There I was with the sales director punching in bids.
As a supplier auctions are pretty scary – certainly the first time you are auctioned is pretty scary. You find yourself overcome by two objectives:
- You want to keep a cool head and only go as far as the walk away price you’ve prepared before the auction.
- You want to win the game (auction) and want to bid further than you ever would in a sealed bid/RFQ situation. (Keynes’ animal spirits are alive and well).
We were very tempted to follow the 2nd strategy and put in lower bids. Very tempted. But I am glad to say that we stuck to our guns. Some reasons (and things the buyer could have done to get us to bid lower) in Part 2.