Procurement Glossary & Terminologies


What is Bid ?

An offer to purchase an asset from a person or business is called a bid. At auctions and on numerous markets, including the stock market, buyers frequently place bids. Companies that compete for project contracts may also submit bids. When placing a bid, a buyer must specify both the amount they are willing to pay for the item and the amount they are willing to spend on it.

Types of Bids

A bid can be submitted in various ways. The different types of offers vary depending on where they are made. Some typical sorts of bids are:

1. Auction Offers Multiple purchasers compete for certain assets at auctions, including cattle, household items, real estate, tax liens on properties, and works of art. Usually, these events occur in person, but as technology has advanced, online auctions are now possible. Participants in auctions place competing bids to purchase the asset through an open bidding procedure. To do this, they compete with other purchasers’ bids to outbid them. The highest bidder receives the winning bid.

2. Online Auction Sites for online bidding operate similarly to conventional auctions. Customers can gather in a virtual marketplace and place bids for the goods and services of their choice on websites like eBay, eBid, and QuiBids.

3. Sealed-Bids Contrary to the two sorts of bids described above, participants in some venues are unaware of the amount their rivals are offering. The same is accurate with sealed-bid auctions. The auction is sealed when several bidders are handed envelopes to bid in. Then the envelopes are sealed, ensuring that no bidder can intentionally outbid another and guaranteeing a fair result. The winner is whoever makes the highest offer. Typically, contracts or real estate sales are the subjects of this bidding.

Insights from Procol

Procol Can Revolutionize Procurement Approval Workflow for You

Connect with an expert who can share more about our solutions and answer any questions you have.

Get Free Demo
Fast Onboarding • Security and Privacy