Online Reverse Auctions are Brand Killers

Brandweek, Dec 4, 2000 by Jacques Chevron

Yes. The venues in which your brands are sold directly impact how they are perceived. This is true whether your brand name is Dow Chemical or Pierre Cardin. If incremental sales coming from otherwise undesirable venues are really important to your company consider buying or setting up a subsidiary and participate in the auction under the name of the subsidiary.

But protect your brand, always! Look at the lost profits of potential sales as an investment in your brand.

And let it be known loudly that your brand doesn't participate in anonymous reverse auctions. Your willingness to avoid them will demonstrate your commitment to your brand values and strengthen your brand.

Jacques Chevron is partner at JRC&A Consulting, a branding strategy and new-product development firm in La Grange, III. It has a Web site an the Internet: JR CandA.com.