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3/15/05: Sorcity.com: Corporate Tax Impact Offset by Savings in Procurement

DALLAS, TX - March 15, 2005... As March 15th approaches, companies are looking for ways to soften the blow of their tax payments. Many companies have successfully made this up by saving money on the goods and services they purchase. They have accomplished this by using Reverse-Auctions, which allow suppliers the ability to compete for business instead of just submit a quote.

The result is a better price, often 10-20% lower than what was paid previously. Because of the competitive and public nature of auctions, suppliers can see when they have been out-bid, providing justification to lower their bid further. Suppliers don't have to hunt for this business, which eliminates some sales and marketing costs, giving them more room to bid.

Sorcity.com is an innovative Reverse-Auction service that provides the buyer a no-cost method to get a better price faster. If only Uncle Sam was that reasonable. Recently Sorcity lowered the price of a client's construction materials 24% in under one-week. A $1.3 million dollar savings is a good reserve to pay for taxes owed! Sorcity.com has saved more than this for many companies over the past six years.

For example, a company that typically spends $4 million for a three-year contract of office supplies or packaging materials, will start the bidding at some modest number above that so that suppliers can place an opening bid, but then watch the bidding drop lower than their original price in most cases. They begin a new 3-year relationship with either their current supplier, or a new supplier, but spend much less.

Through Sorcity, Supply Managers describe what they need to buy, just as they do today, and sellers determine if they can meet those needs and want to compete for the business by bidding online. This process eliminates unnecessary cost and time that exists in the traditional buying and selling cycles. From janitorial supplies to production materials, Sorcity.com has it covered.

From a financial standpoint, not only do Reverse-Auctions save money but they also make a company more profitable, because every dollar not spent by the purchasing organization is a dollar retained. The Sorcity.com service adds profits to a company's overall gross revenue, which can prove irresistible during the tax season.