A Few Things About Online Auctions

A Few Things About Auctions

By |August 31st, 2012
A Few Things About Gates, Baldness and Dutch Online Auctions

“In the future there will be two types of companies …those on the Internet and those out of business”, – Bill Gates said in his world bestselling masterpiece “Business @ the Speed of Thought” back in 1999. Nowadays, each and every, who kept their ears open to the words of business-guru, could be called “bill-gates” of their own sphere. If you’re dreaming about seeing your company flag, victoriously fluttering on the very top of the business world, and having look from there on the bald heads of your competitors, who are at each other’s throats for some crumbs from your negotiations table – this article is worth reading for you.

You’ll get acquainted wih one of the most efficient business-tools – Dutch online auction. If you’re not interested – so be it – it’d be better for you to hurry up to the next door store to get half-priced remedies for baldness and increased perspiration. They are to be your main weapons in harsh competition of the next years.

If you know absolutely nothing about internet-auctions, about all the things we’re here talking about, it’d be better for you to start getting acquainted with the topic from the first blogpost. Basic knowledge, brief history, main benefits – all these essentials are in the article “Online Auctions Are Worthwhile”. Now you’re ready to have a talk about one of the auctions, which, in his classical form, was born in the Netherlands, the land of red lights, red eyes and red tulips, actually just for trading these tulips (these type of trading, by the way, also took roots in “red lights”-buisness – got interested? Ask me, would give you Amsterdam phone number and address). However, as well as many others, this kind of business-model was slightly reinterpreted, rebuilt and adapted for internet-trading.

Dutch auction, classically – a type of auction meaning that seller, at the beginning, establishes a price at the maximum level, and then gradually reduces it, until one of the buyers stop the auction, what means he’s ready to buy a lot for this price. The rules of Internet-auction are slightly different – the auctions are more hazardous, and the benefits are more for both buyer and seller. “Don’t believe you, this is highly improbable” – I hear you saying. Further reading would change your mind, I promise.

One of the most fast-growing and perspective, getting more and more popular in the Web, is the Dutch auction with hidden starting price. It’s caused by greater benefits for participants and greater passion during the auction itself.

Dutch auction with hidden starting price – such kind of auction, when the owner of the auction (this is You, I mean), deciding to sell something, establishing a price on the average level (or at the level you planned to sell your goods without auction), and starting auction. Participants of the auction could see only the starting price of your lot. To have a look at the current price they have to pay some fixed tax ($5 f.e.) However, every next viewing of the lot reduces its price for some fixed sum ($2,f.e.). The winner of the auction is the person who was satisfied with the price after viewing and he bought a lot. Obviously, the winner gets your goods for lower price, then the one you established, but you don’t lose your money as well, because you have profit for every viewing of the lot (in our example, profit sums at $3 for each viewing ($5-$2)).

Have a look at the model we offer you next, to understand all the benefits you get in real life as owner of internet-auction.
You’re an owner of a small company in the sphere of auto business (trading cars, spare parts, tools etc.) You, as well as all the businessmen, want your business to be effective, prosperous and to bring you maximum income with the minimum temporary and material expenses. But you’re not just simple businessman. You’re one of the “advanced” guys who also know that all his problems in business world could be solved by some tricky thing called marketing. Taking into account all these facts, we can surely confirm that you already have been trying to advertise yourself in local newspapers and on radio. However, it brought you neither great extra income nor lots of new clients.

That’s the way 90% of businessman live for years and years even not knowing that prosperity of their business is only at the step distance from them. You’re already at our website – it means you’re half-step closer to your prospering business.

How can Merkeleon team help you to reach success?

You buy your own auction of any model ( Classic, Penny, Reveal or Mixed). Then, you have in the disposal your own Web-portal, which is absolutely and totally developed for holding online-auctions. We don’t offer just Web-portal itself. Also, we configure it, taking into account all your needs, and then help you with service and promotion.

What is the main benefit of selling your good (cars, f.e.) via online-auctions?

You, being an owner of the auction, get both profit for goods themselves and extra profit for holding auction.

Let’s continue our model about you as a automobile-businessman. You buy our “Reveal auction”, totally tuned according to features of your business (you can choose the design of the web-portal; can choose all the languages, supported by your portal; your website may include blog, forum etc.; you, personally, choose paying systems, which would be used for paying for lots at your auction; we could also develop for you corporate style of the web-portal (logo, banners, brandbook etc.) Full options set is really enormous, you can get acquainted with it at our site.

For example, your auction-portal started and you put first lot – BMW 320, 2000. Average price of this model – $9500, that’s why starting price’s better to establish at this level. Then you establish tax for viewing ($10, f.e.) and sum of reduction for viewing ($6, f.e.). Your profit depends on the quantity of participants of the auction (that’s reason for serious investments into promotion your auction). For example, 500th participant, who viewed the price, decided to buy a car. So, obviously, car would cost him $6500 (instead of $9500). His economy – $6*500=$3000. If this guy someday decides to change a car, needs to get some spare parts or helps some friend with choosing a new car, he will come back to you, 100%. It seems that impossible to get some profit selling a car $3000 cheaper than you planned. Yes, it’s so, if you not talking about auction trading. For each viewing of the lot you get $4 profit ($10-$6), what finally sums in $2000 profit for 500 viewings. In the nutshell, auction winner buys $9500-car for $6500, you sell $9500-car for $11500. Mutually beneficial cooperation, buyer’s happy and will be bringing his money back to you once and once again.

That’s not Cooperfield, Madoff or Messing kind of magic. That’s just a secret of prosperous modern business.

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