A reverse auction is a procurement tool that allows
buyers to get the best price by having suppliers
compete with each other in a live environment to
drive the price down. Reverse auctions work just
like a normal auction, except instead of buyers
competing and driving the price up, sellers compete
to drive the price down to the benefit of the buyer.
Although our auction platform was built from the
ground up with energy procurement in mind, it
can be configured to price and purchase just about
Deregulated energy purchases are particularly well
suited for reverse auctions for a number of
reasons. Energy is commoditized, meaning there is
no difference in product quality between suppliers.
Energy suppliers have different, constantly
changing risk profiles and the prices they are able
to offer to customers can change by the hour.
Because of the commoditized nature of energy,
suppliers are willing to accept very low margins
when they have to compete to get a sale. Every time
a supplier enters a bid in a reverse auction, every
other supplier knows they are going to lose the
sale unless they compress their margin even more.
The result is that the customer can be confident
that they are getting best available price at that
Torpedo will custom configure each auction ahead
of time and invite bidders. The auction will start
at a scheduled time and bidders will make bids
until time expires. Auctions are live and
typically last 15 minutes to 1 hour. Customers can
watch the auction through our platform and will get
a full report of the results afterwards.
No, a reverse auction is designed to enhance your
procurement options and get you the best possible
price, not force you into commitments that aren’t
right for you. If you are not happy with the
pricing, there is no commitment to sign a contract
with the lowest bidder or any bidder. You can also
use Torpedo to solicit pricing only, and then
choose a vendor based on a combination of price
and qualitative factors, just as you would in
a traditional blind-bid RFP process.
Torpedo was founded on the philosophy that reverse
auctions should be a procurement tool accessible
to all organizations- not just large enterprises.
Our pricing varies depending on the type, size,
and complexity of the auction, but we are committed
to pricing our services so they bring value to any
customer, regardless of their size or what they are
buying. We are especially committed to helping
non-profit organizations achieve savings.
Non-commodity auctions can also be supplier funded,
meaning that Torpedo will receive compensation
directly from a supplier that is built into their
Yes, we offer discounted pricing to customers who
commit to multiple auction events over several
years. We develop custom packages to suit your