A reverse auction is one of the most perverse ways to win business I have ever heard. Very little information about the project is presented: no schedule, no creative brief, no technical requirements, no examples, just a few basic facts.

“Design a promotional web site to collect recipient’s information with some reporting over a 6 month period.”

The only solid information is the budget. The object of a reverse auction is to estimate costs for the project within the budget based on a vague description, gut reaction, assumptions and an educated guess. In other words, a wing and a prayer.

I guess the project is awarded to the lowest bidder, but it can’t be as simple as that. This practice seems to be common in the sales promotion industry, but is foreign to me and violates everything I’ve learned about conducting sound business practices. Only in the advertising business could something this preposterous be acceptable. How low can an agency’s self-respect be to risk loosing money by winning a project they know little about? The very act of participating is an act of submission.

I don’t have an answer on how to fix this situation other than don’t play the game. If the project begins with this much in the client’s favor how can it ever get to a point where it’s fair for the vendor. Up front it’s a loose-loose for everyone. There is no honesty, no trust, no respect, no communication and no relationship. Money is the only factor – is there a profit margin or not.