Test Your Luck, Use Code: LUCKYME - Get Upto 10% OFF (T&C*)
What is an Online Negotiation/Sourcing Event?
An Online Negotiation Event is a system of negotiating a price agreement between a buyer “Host” and multiple participants “Vendors” through our proprietary procurement software in order to identify the most feasible participant(s) to conduct business with. The participants compete with each other dynamically and in real time by using feedback from ShakeDeal’s software to gauge whether or not to adjust their price for the line items in the event, be it a supply/service contract. It’s like eBay, but in a professional and private market environment where both forward and reverse auctions can be created and hosted. The host is always in charge of who is involved in the bidding and has full traceability via the transparency offered by our software. Quite often, this method is considered a more efficient way to settle the price negotiation when compared to traditional face-to-face negotiations.
What are the other terms used in place of an Online Negotiation Event?
There have been many names given to online negotiation events in the past, but here are some of the alternatively used terms that you may come across or be aware of when it comes to Online Negotiations:
Who is a Host?
A Host is a person representing a company running and managing the Online Sourcing Event and is genuinely interested to either buy or sell certain goods or services. The Host would have paid an EMD (Earnest Money Deposit) to use our software and establish genuine intent to buy or sell a product or service. The Host will be the one responsible for creating the events, defining the requirements, inviting vendors, and making a decision on whom to award business to.
Who is a Participant?
A “Participant” is a person representing a company that is involved in the business of providing goods or services as requisitioned through the Online Sourcing Event. A participant bids during the Online Sourcing Event with the main aim of closing a business transaction. Participants don’t pay to take part in Online Sourcing Events as this would prevent Hosts from realizing true market prices.
What is a private marketplace?
The Online Sourcing Events that take place on ShakeDeal are only open to those participants invited by the Host. The Event is completely hidden, and conducted behind a virtual curtain, without being visible to anybody apart from the Host and the Participants. It is unlike the open marketplace that is usually the case with E-Commerce marketplaces.
What can you negotiate online?
Some of the types of items we have seen been negotiated online from our experiences are given below, and this is by no means an exhausted list:
Indirect Commodities: Office Supplies & Equipment, IT Hardware, Software & Maintenance, Printing Services & Materials, Temporary Labor, Envelopes & Paper, Couriers & Postage, Utilities & Raw Fuels (Gas, Electricity, Diesel, Coal…), Packaging, Cabling & Electrical Connectors, Electrical Components, Factory Consumables, Uniforms & PPE, Conveyors, Insurance, and many others.
Direct Commodities: Both Scrap and Virgin Raw Materials (Plastics, Metals, Ceramics, Timber, Cardboard…), Machined Parts, Sand Castings, Forgings, Injection Moldings, Blow Moldings, Thermoformed Pots, Foil Lids, Die Castings, Pressed Parts, Cold-Formed Parts, Fasteners, Chemicals, Printed Circuit Board Assemblies, Wire Harnesses, LED Assemblies, Stone Crusher Jaws & Mantles, Seals & Gaskets, Food Stuff (Rice, Tomato Powder…) and many others.
Services: Lawn Mowing, Road Sweeping, Laser Cutting, Car Rental & Leasing, Mail Fulfillment, Electrical Contracting, Building Services, Facilities Management Services, Electrical Design Services, and so on.
Miscellaneous: Property, Antiques, Jewelry & Precious Metals, Gas Turbines, Art, Used Machinery & Equipment, Warehousing, Capital Projects and so on.
If you ever run into a problem deciding whether a particular category is suitable for online negotiation, please feel free to reach out to our experts at ShakeDeal and we will give you our opinion on how to go about your sourcing.
How do you ensure all bids are legally binding?
All bids placed are legally binding. The duration that these prices will be valid for depends on the sourcing events terms and conditions.
What if the internet connectivity goes down during the Event?
The Sourcing Events are designed to be conducted online as it is the only way of dynamically enabling real-time bidding. As an event is created, your settings are auto-saved as you proceed and we ensure regular back-ups of data via our servers. If in any case, your internet connection goes down, your ability to view/participate in the event will be affected, and we suggest alternative connectivity methods to be kept at bay. If this happens, as a Host the Event will continue to run on our servers but the real time feed will not be visible until connectivity is restored. If this happens, as a participant you will not be able to take part in the event and we recommend you to call ShakeDeal directly to offer them your best and final bid.
Incase our servers goes down (the chance of this happening is very slim), they should be up and running within a few minutes. If the server fails during an Event and the Event does not show up when the servers are back on, then the ideal solution to this would be to re-create the event and proceed with the negotiations. The probability of this occurring is very low though.
How can I be sure the Event is genuine and legitimate?
Since Hosts need to pay an EMD (Earnest Money Deposit) to establish genuine interest to Source, it is unlikely they will do this unless they are serious about the Online Sourcing Event. Hence, any invitation from ShakeDeal to an Online Sourcing Event is a real opportunity for you to increase your business by gaining a genuine customer.
Why should I use ShakeDeal?
ShakeDeal is the first B2B Bulk Sourcing Marketplace that is designed to make B2B online negotiations easier. There are many benefits of using such tools, but not many are able to do so due to steep costs, complex products, and unintuitive products offering such solutions in the market. We at ShakeDeal are aiming to simplify procurement through our proprietary flows and ensure this market provides you with your sourcing requirements at the right cost, terms, and service levels.
ShakeDeal must be your numero uno choice in B2B Sourcing and Negotiations as we are the only company in the market incorporating such salient features to solve problems of:
When should I use ShakeDeal?
ShakeDeal is an online B2B Bulk Sourcing and Negotiation Marketplace that can help you run a successful negotiation to find the true market price for your goods or services. Our Online Negotiation events have a greater probability for adding value when there is:
What Type of Events can I create?
Currently, you can run Reverse Auctions – where the Host is buying and the participants keep bidding where prices always go down. Reverse Auctions can either be ‘Ranked’ or ‘Open’. For now, we are enabling ‘Ranked’ Reverse Auctions because they are better at encouraging bidding.
Can I upload documents?
Ensuring that the Online Negotiation Event is a success is all about defining the specifications. It ensures that all participants bid on equal terms, and hence the event has a higher probability of success.
In order to do so, we have built in a smart questionnaire tool which allows for a detailed spec-documentation and therefore, as of now, we do not allow documents to be uploaded.
How do I invite participants to take part in my Event?
Invoking a Sourcing Event and inviting participants to take part in it can be done in two ways. The easiest way to create an Online Sourcing Event is by clicking on the ‘Bulk Buy’ button on the Home Page, which takes you to the ‘Sourcing Events’ dashboard.
The second avenue to trigger an Online Sourcing Event is from the Open Marketplace of ShakeDeal. When browsing for products, one can start a Negotiation Event from the ‘Product Details Page’ by clicking on the action button ‘Source in Bulk’.
Can someone make a last minute bid and win the Event?
These Online Sourcing Events are designed to arrive at true market equilibrium prices and eliminating any inflation from the market prices. ‘Sniping’ is a practice where Participants bid very late into the event and take a lead, only to limit the time available for other Participants to react.
In order to create a fair system, we have incorporated something known as a ‘Dynamic Close Period’ which enables an ‘Automatic Time Extension’ when last minute bids are placed.
Does Online Negotiation Events strain relationships with incumbent suppliers?
There are conflicting schools of thought when it comes to the myths surrounding Online Negotiation Events and their impacts on incumbent suppliers. However, according to certain experts, these Events, if run correctly, will not damage existing relationships. Some scholars even suggest that they actually reinforce relationships.
Who can access my Private Sourcing Events?
Event Invites are sent out to only those participants chosen by the Host. Once the Participants choose to accept the Event Invite, they alone get access to the event briefs and the accompanying questionnaires