Limousine Rental Service
If you are a limousine operator and travel services to corporate accounts, chances are you have experience with electronic auctions. E-auctions, also known as reverse auctions, such as re-sale, where the role of buyers and sellers is restored. This is a tool used by companies to reduce the cost down to work in ways that do not normally be reached during normal business negotiations. Usually during the electronic auction limousine company to supply the price for a trip from point A to point B. Once put in the price, they will see how they are measured in terms of price.
For example, if 10 companies trading at a price and you are the eighth highest price, your rank will be the number 8. Thus, there are seven lower bidders and companies whose price for the same service below. Once the rating given, you will now have the opportunity to reduce the price for this trip to get a more favorable rating. Now, when you lower the price of a new rating will appear. Let’s say you dropped the price, but now you are occupying 2. Typically, an electronic auction updates this after additional amount of time, perhaps 30 seconds.
After 30 seconds you will see that your competitors will bid lower again, and now you are occupying 10! Now the process begins anew. E-auctions also time sensitive. This means that you only have so much time to enter the lower bid before the auction process is closed. In the heat of the moment, companies are competing for the bid to split second decision to decide what price is suitable for this trip, and may be prone to making wrong decisions / knee-jerk reaction arbitrarily reduce the price without any real analysis, if the price will be more useful and profitable for the company limousine. For the inexperienced company, applications for electronic auction, which could happen that they are exceptionally low rates, and will have a modest income from a contract service agreement between you and the corporation?
Such agreements are not suitable for a limousine service, and it is not good for the corporations that have made e-auction. The final results of the electronic auction may be that limousine companies currently provide services to an exceptionally low price, which can wear down your limousine fleet vehicle maintenance could be affected and, ultimately, you will not be able to upgrade the fleet, as you would normally to compete with your competitors, because if you do more volume at the expense of the corporation who hired you, your profit is now lower.
E-auctions is a very dangerous path, and really need to be considered taking into account very carefully. Corporations that install electronic trading also can not benefit from this type of reverse auction. If someone is to base the decision to hire a limousine company it cannot be solely on price. If the company is looking to book a corporate car service, the company must compare apples to apples, not apples with oranges. In an e-auction, you can Limousine Company, which owns a fleet of vehicles, mostly old cars models.
E-auctions are simply not good for corporate America or the limousine and car service industry. It has a negative effect on the bottom-line, because it affects customer service, safety, and productivity.
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