Producers will now have more control when buying bulk feed ingredients with the reverse auction service from Feedpail.com, the online feed ingredient marketplace that launched in the spring of 2012. The service works like a funnel – a large network of suppliers goes into the top of the funnel and they compete in a reverse-auction format with the price going lower with each bid. Because suppliers can see what other suppliers are bidding, there is a high degree of transparency that drives a lower price.
The lowest bid at the end of the auction is the winner. The buyer can choose at that point if they want to accept the price and connect with the supplier for a $50 auction fee.Once accepted, buyers are connected with the supplier to finalize details and confirm the order.
If for any reason the supplier cannot deliver at the auction price to the buyer’s satisfaction, the $50 auction fee is refundable.
The reverse auction service is in addition to Feedpail.com's initial offering, a supplier listing service that allows buyers to see prices, connect with suppliers and search for alternative ingredients. PD
—From Feedpail.com news release
