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Going once … Going twice ... Reverse auctions for ATM paper
There can be some advantages to the practice of reverse auction buying, but there can be some hidden drawbacks, as well.
May 28, 2015 by Ben Meeks — Owner, Brian Kirk Copywriting
Business today happens fast; we call it efficient. People might work together without ever meeting in person, and we call it connected. Call customer service and you wind up talking to a recording. How convenient.
It's a fact, more work gets done today than ever before. But at what cost? What have we given up?
Sure, speed is important, but so is service. Automation helps drive costs down, but can also compromise the customer experience.
The good news is that we don't have to choose one or the other. Instead, we can work to strike a better balance between the two.
Take ATM paper, for example. Not too long ago, when a company needed to purchase thermal paper rolls for its ATM receipts they would approach a few trusted suppliers and give them an opportunity to quote the job.
The process was fairly inclusive; it allowed for the supplier's representatives to get to know the customer and their needs, which not only resulted in a more customized proposal, but also opened the doors for a personal relationship that would ultimately benefit both parties as they became more familiar with each other's operation.
Today, many paper procurers prefer to receive bids through a process called a reverse auction. Here, bids are submitted anonymously, and the only real variable being considered is cost.
There are certainly some advantages to this approach: It is often more efficient (there's that word again) for the customer, in the short term, and will usually save them a few cents on a paper roll for that particular order.
But there are also some disadvantages that could prove significant given the size and specifics of the job. This includes thermal paper that doesn't just cost less, but is cheap from a quality standpoint as well, leading to performance issues such as jams, tears, and scuffing of the print head which could require costly repairs.
Reverse auctions also tend to apply less attention to important variables such as the service a supplier provides and their technical expertise. Oftentimes these critical components are not provided by the thermal paper suppliers who offer the lowest cost, which can be frustrating when a problem arises and there's no one on the supplier's side to help.
When considering thermal paper suppliers, here are a few points that customers should take into consideration:
- Custom solutions —Suppliers that have strong technical expertise are often able to propose custom solutions to certain jobs that address the needs of a customer better than the stock option being considered at the time. Customers who only use reverse auctions often miss out on these custom-tailored options.
- The right paper —All thermal paper is not created equal. Experienced suppliers know this and can recommend the paper type that will work best with a particular machine. Often times these nuances are missing from bids obtained through auctions.
- Consistent pricing and performance —Suppliers know the game when submitting through reverse auctions. It all comes down to cost. And there are many thermal paper suppliers who will undercut cost in order to get the job, hoping to make money down the line. What looked like a great deal at the beginning loses its shine when it's time to reorder and the pricing has changed. The customer then realizes that they're dealing with an inferior supplier who doesn't have their best interests in mind.
The world of ATM paper has changed. Naturally, so have the rules. But there are some things that technology can't improve upon, such as service, expertise, and a company that cares.
While these qualities may cost a couple of cents more per paper roll, they can save a customer time, money, and angst in the long run.
Ben Meeks is president of Graphic Tickets & Systems, a supplier of ATM paper for financial institutions.
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