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Thoughts on Sales with a Declining Price (Or THE DUTCH ARE TAKING OVER! NO WORD OR CONCEPT IS SAFE)

  1. trackpad Feb 27, 2018

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    I’m interested in the idea of selling an item at a price that declines on a predictable schedule over time. I've seen this (unconvincingly) referred to as a "vente au cadran" or "vente à prix dégressif" style auction elsewhere. But it sounds like a made up name.

    Anyway, it's pretty simple:

    1)
    An item is listed and a starting price is set.

    2)
    At the same time, a schedule is set for the decline of this price by some fixed increment over some fixed amount of time until sold or withdrawn.

    3)
    The first one to commit to the current price (obviously) takes the item.

    Example 1: Watch is listed at 5,000 USD. But will decline by 150 USD every day starting one week from today.

    Example 2: Watch is listed at 20,000 USD. But will decline 300 USD per week starting 10 days from today.

    A reserve price can also be set, though I'm not sure if it needs to be made public, or if the item is just WITHDRAWN before that minimum price threshold is crossed.

    The FS listing is bumped on a predictable schedule with declines in the price.

    This is, you might have noticed, exactly how most sales work today! ...only more transparent. Arguably more efficient. Certainly more predictable.

    Thoughts? Dumb idea? Been tried before?
     
  2. ahsposo Most fun screen name at ΩF Feb 27, 2018

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    I've heard of this as a dutch auction. It seems to be a practical way of selling in a fixed site, like a retail store or a online site. Sort of like a game of chicken for buyers.
     
  3. trackpad Feb 27, 2018

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    Yep. Freakin' "Dutch Auction". I looked it up earlier thinking that was what it was called, but mis-read the wikipedia entry and came away thinking I had it wrong. Thanks @ahsposo.

    Still interested to know what you think about this way of running a sale. Seems so much more straightforward to me.
     
  4. oddboy Zero to Grail+2998 In Six Months Feb 27, 2018

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    "vente au cadran", doesn't that translate to "sale of dial" ?
     
  5. trackpad Feb 27, 2018

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    Sure – "sale of dial"....really boils it down to the essence of a FS listing.
     
  6. MaiLollo Feb 27, 2018

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    Vente du cadran would be sale of dial - vente AU cadran translates to sale by the dial
    I imagine the dial is an image for the gradually decreasing price
     
    oddboy likes this.
  7. michael22 Feb 27, 2018

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    It's a great way of getting through an auction fast, there is only ever one bid.
     
  8. Longbow Feb 27, 2018

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    But what if it’s a “Sale of re-dial”? Dutch “coffee shop” auction perhaps!
     
    isaac.owen.nz and ulackfocus like this.
  9. asrnj77 Feb 28, 2018

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    I think it’s a good idea but isn’t that sort of what happens in all listings? The seller lists a price and after a handful of bumps the price goes down until it’s sold. Either way bring it on and let’s what you’re selling...
     
  10. ulackfocus Feb 28, 2018

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    If ever there was a good reason for collusion amongst buyers, this style of selling would be it. :p
     
  11. eugeneandresson 'I used a hammer, a chisel, and my fingers' Feb 28, 2018

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    I don't know whats better (or worse) : 'dutch auction' or 'dutch oven' ...
     
  12. airansun In the shuffling madness Feb 28, 2018

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    Filene’s Basement used to work this way. Items were marked down automatically after one week, two weeks and three weeks on the floor. Customers could see where on that scale a particular item fell by a colored hang tag.

    This was a great way to move ‘old’ merchandise out fast. It was also interesting to see what sold early and what lingered. I think, after a period of time, unsold items were donated or otherwise disposed.
     
    GregH likes this.
  13. trackpad Feb 28, 2018

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    Dining out Dutch. Dutch Auctions. Dutch Ovens. Is there any moniker these people can't nationalize? Someone should make a list.

    Shit, what's this? Someone made a list.
     
  14. oddboy Zero to Grail+2998 In Six Months Feb 28, 2018

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    Foo2rama and eugeneandresson like this.
  15. eugeneandresson 'I used a hammer, a chisel, and my fingers' Feb 28, 2018

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  16. trackpad Feb 28, 2018

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    eugeneandresson likes this.
  17. BenBagbag Feb 28, 2018

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    Issue with this system is that you are assuming a healthy balance between supply and demand.

    That is, that there are always buyers (and sellers) at certain price points. For example, the reason why most stocks have (relative) stability is that there is always a bid and an ask. So if I need to sell my stock I either need to sell it for what people are actively willing to pay now, or I hold on to it. If enough people hold onto it the price will go up. I think this is the idea of a liquid market.

    I vaguely remember a high end quartz watch that was bumped incessantly for months at a certain price point. Eventually he sold it for the amount he had kept it steady at for 2 months or so, and made a point to stress what the sale price was. It was a arduous journey but eventually he found the one poor soul who wanted to spend $1000.

    I don't think OmegaForums and highly niche vintage watches has the type of demand and exposure to warrant a dutch "whatever." It certainly isn't the *best* way to get top dollar IMO.
     
    michael22 and trackpad like this.
  18. trackpad Feb 28, 2018

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    I don't know what to do with an actual on topic response at this point. But... thank you.

    I think you're certainly right that this isn't a good format for all pieces. And niche pieces – even highly desirable, attractive ones could definitely suffer. It's probably better suited to higher value, popular pieces that have a strong market.

    Also best if the price doesn't decline for some window of time first, so that interest can be piqued and tires kicked in advance. And then after that, a healthy decline on a fairly tight – but not too tight – schedule.

    For example, starting at $15,000 sitting there for 7 to 10 days to take questions. And then declining by $300 every 3 days until sold.

    Maybe I am over-estimating the size of the private sales forum here, but for the right piece I think word would get out and it could achieve fair market price faster, all with less energy and haggling.

    Don't forget, the seller will have a number in mind, and can always pull the plug and try another format later if it doesn't work out.
     
  19. trackpad Feb 28, 2018

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    I think "the dial" in this case is a reference to the role of time, which makes sense, as the sale is tied to time in a concrete way. Anyway – forget all that. "DUTCH AUCTION" it is. The French may not like it but the world already decided.
     
  20. BlackTalon This Space for Rent Feb 28, 2018

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    As someone indicated previously, as a seller you have full control over using the dutch auction method. I am not sure an automated feature is needed here, or is desirable. When you initially post for sale, indicate it will be a dutch auction format, and you will lower the price by $x every xx days, and then stick to it.