A State Education Lottery has successfully been using a reverse auction strategy to purchase its promotional items like pens, cups, and t-shirts with their logo. The first two auctions came in below budget, but the third bid delivered even more amazing results. Seven bidders were approved to compete after submitting samples to the agency. The catalog price for the items was over $150,000 and the State budgeted $129,000 for the purchase. After an hour of suppliers underbidding each other, the low bid came in at $50,000! Second place was $51,900 and all seven of the bidders were at least 25% below the budgeted amount.
Posts Tagged ‘Lottery Promotional Products’
A Southern State needed to procure their Lottery Promotional Products, and used eBridge’s reverse auction process. The State pre-qualified the suppliers by having them submit samples. There were six approved participating suppliers. At the end of the event, the taxpayers saved money because the final bid came in 30% below the budgeted amount.