There has been a lot of discussion around the idea of having bidders pay the cost of using eBidding systems, with some pretty strong opinions that the bidders will resist, boycott, complain, or just be unhappy.
Since we offer an eBidding solution, this is a question dear to our hearts. So we did a (unscientific) survey of respondents to one of our clients’ RFQs and worked with another client to survey (again, not scientifically) the respondents to one of their RFQs.
In the survey conducted by our company:
- Over 80% of the respondents said that they were happy with the value of online bidding compared to the cost;
- 84% said that they saved money with online bidding and 33% said that they saved between $1000 and $3000.
In the survey conducted by our client, 100% of the respondents, all of whom paid to bid, said that given a choice, they would choose to use online bidding over paper bidding.
When you consider the cost savings to the bidder by responding online, the results really aren’t surprising:
- The time to complete a paper response, calculate totals, error check, etc is reduced by about 50% on average;
- The costs of printing, paper and envelopes, especially multiple copies are eliminated;
- The cost of time and vehicle to drive to a closing location, park, and drive back, or the cost of couriering a response to the closing location is eliminated;
- The cost of couriering bid bonds from the Bonding Agent to the bidder, or picking the bond up in person and delivering it is eliminated.
Since these reduced or eliminated costs are significantly more than the cost to bid, it makes sense that vendors would prefer to respond online.