Do you provide technology or a service?
Tradeslot offers both the technology and the services required to run successful auction and trading platforms. This spans upfront design, participant training, auction operation, help desk and post event analysis as well as reporting. In terms of technology, Tradeslot offers a range of pre-configured auction and trading formats and industry templates. Tradeslot’s products are based on Microsoft products and frameworks (ASP.Net, SQL Server) and can be hosted on the cloud, third party hosting environments or client sites.
Where are high end auctions used?
Auctions have been around for centuries. In general, they achieve transparent pricing and profit maximisation – which has ironically been their greatest weakness – their reputation to squeeze suppliers or extort buyers. In recent years, industry and Government re-discovered auctions – mainly driven by advances in auction theory and technology. Particularly for the allocation of constrained resources and capacity, well designed auctions are able to balance financial returns with a variety of soft factors, constraints, weightings or policy settings. The ideal situation for (allocation) auctions is a small number of sellers (or a monopoly seller), constrained supply and a known group of participants. Examples are: Port Capacity, Freight Allocation, Airport Cargo Allocation, Government License and Rights Allocation, Ore and Mineral Sales etc.
Auctions are just about submitting the best price, right?
Some auction focus on price only. In fact, most consumer oriented auctions (think eBay) work that way. Businesses normally care about many more dimensions including non-price or “soft” factors. High end auction and trading software recognizes non-price factors and manages to create a very rich auction environment in which participants can respond via price but also other dimensions (i.e. payment terms or delivery modes). Other examples are volume preferences, qualities, freight components…..even loyalty. The interesting part is that – as opposed to traditional auctioning – great quality or superior service can suddenly have a tangible value in the bidding process!
Can auctions still work if market participants would like to bundle specific goods or services?
Very much so. Anything that creates value to buyers or sellers should be recognized in a good auction design. The reason is simple: if I can express exactly what I want, in the right quantity, the right timing etc. I am more willing to pay a higher price (think: tailored suit). Technically, the auction system checks in real time, whether there is a bundle that would create greater revenue for the seller than selling individually. If that is the case, competitors need to bid high enough of the individual items to “break” the bundle. This format is called a combinatorial auction . You create bundles (or combinations) and tell the system what it is worth to you to get the whole bundle together.
Why do high end B2B auctions increase revenue?
One of Tradeslot’s flagship platforms is run by the Victorian Government to sell native timber. The auction events achieved initial revenue uplift of 40% and of 16% over the longer term. At the core of this success lies the ability of buyers and sellers to express exact preferences (which creates a high degree of fit and willingness to pay) while participants are subjected to the forces of market competition. This combination has proven enormously powerful.
Do we have to install software or hardware to participate in these auctions?
All of Tradeslot’s auction platforms are web based so no software needs to be installed. While some customers prefer dedicated hardware, Tradeslot also works with Microsoft Windows AZURE cloud computing to offer maximum scalability and reliability.
If its all web-based are there security issues?
No. All systems are securely hosted and data is transmitted securely using 256-bit SSL encryption and Microsoft products and frameworks.
Are your auctions and trading platform open to the public?
Tradeslot though typically creates “private markets” with pre-qualified participants. The value transacted in these auctions is measured in millions of dollars and the credibility of all participants is paramount. Equally important, bidder specific factors (e.g. quality scores or pre-negotiated discounts) require market participants to be known upfront.
I still can’t visualize how your technology works.
Just call us and we will set up an online demonstration – no strings attached.