BANANA AUCTION
In an open auction, parties come together at a physical venue exchange to bid on banana. An interested party is aware of the competing bid amounts and continues to raise their bid until they are either declared the winner of the auction (i.e., they submitted the last highest bid within the auction time limit) or until they decide to drop out of the bidding.
In Kalakad banana auction center springs an opportunities to farmers where they can sell their products in expected value by bid system. The farmers and buyers are called on specific days in week to come across to trade a banana directly with each other.
There are more than 500 banana farmers are loading their products in this center for bidding and not less than 1000 buyers are coming to buy banana in a month.
Advantages of Bidding
- One of the main advantages of competitive bidding is that it can help you achieve cost savings and value for money.
- By creating a competitive environment among potential suppliers
- Buyers are encouraged to offer lower prices, better terms, and higher quality.
- While it offers a plethora of advantages such as fair competition and value for money, it’s not devoid of pitfalls.
Disadvantages of Bidding
- Potential for Low-Quality Work: One of the primary drawbacks of the bidding process is the ever-present danger of compromising on quality.
- Reduced Innovation: The bidding process, with its fierce focus on competitive pricing, might inadvertently stifle creativity and innovation.
- Strained Relationships: The very nature of the bidding process means that there will be winners and losers. Repeatedly losing out on bids, especially after significant investment in the proposal process, can breed resentment. Over time, this can strain or sever relationships with suppliers, narrowing the pool of bidders and potentially leading to less competitive pricing.