Choosing the Right Bidding Strategy

While both reverse auctions and sealed-bid RFPs are designed to create competition, they have different strengths and weaknesses.

The Reverse Auction

In a reverse auction, suppliers log into a live, online platform and bid against each other in real-time. The price drops as they compete for the lowest rate.

• Pros: Creates a high-pressure, competitive environment that can drive prices very low. Provides a clear "winning" price.
• Cons: Can sometimes lead to "herding" behavior where suppliers bid incrementally instead of offering their true best price upfront. Less focus on contract terms.

The Sealed-Bid RFP

In a traditional sealed-bid RFP, we solicit a single, "best and final" offer from each supplier by a specific deadline.

• Pros: Encourages suppliers to be aggressive with their initial offer, as they don't know what others are bidding. Allows for more detailed comparison of contract language and "fine print."
• Cons: Lacks the live excitement of an auction.

Our Recommendation for Most Ohio Businesses

For most commercial clients in Ohio, we recommend a professionally managed, sealed-bid RFP. It consistently delivers strong pricing while allowing us the flexibility to negotiate favorable contract terms on your behalf, which is just as important as the price itself.