New way of selling

[neddy]

Ok - as you know, we like experimenting with different ways of selling domains.

This time around, we are trialling the famous "Dutch Auction" method.

I think this could be quite exciting - it's where the price starts at the top - then gradually goes down until someone sees the value at a particular level and then buys.

This method is famously used overseas e.g. flowers; fish; produce.

So why not domains?

• We have two basic entry points - and one basic rule.
  
  
• $500 start price - if no one posts sold, then the price gets reduced by $50 the next day. So it is then $450 - and if no one posts sold, it goes down to $400 the next day ........... and so on
  until someone posts "sold". It could get down as low as the minimum level of $50*. *This is assuming the listing runs for 10 days with 9 price reductions. If it is a 7 day listing, then the
  lowest price it will get to is $200 (with 6 price reductions).
  
  
• It's like playing "chicken" with your fellow domainers! Who wants it first?
  
  
• The other entry point is $250 - this goes down by $25 per day until someone marks "sold". Minimum price level $25*. *This is assuming the listing runs for 10 days with 9 price reductions. If it
  is a 7 day listing, then the lowest price it will get to is $100 (with 6 price reductions).
  
  
• The one basic rule is that the first person that posts "sold" at the particular price level is the winner.
  
  
• Other normal marketplace rules apply of course.
  
  
• We do reserve the right to change or add to these rules if required.

What do you think?

As usual, I will be the "guinea pig" !
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[helloworld]

Sounds good.

 

[findtim]

interesting idea

 

[fcdoms]

I think a Dutch auction would be a good thing.

 

[johno69]

It could get down as low as the minimum level of $50.

Seems they can't go this low, people are putting a 7 day expiry on the auctions.

$500 - 6 x 50 = $200

Only deduct $50 6 times because you don't deduct it on day 1.

Anyway, nice idea.

 

[neddy]

Seems they can't go this low, people are putting a 7 day expiry on the auctions.

$500 - 6 x 50 = $200

Only deduct $50 6 times because you don't deduct it on day 1.

Anyway, nice idea.

Nitpicker! But you are right.

Anyway, it is all about trialling and testing new / different methods of selling domains.

Some may work - some may not. But if we don't try, we'll never know.
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[johno69]

Nitpicker! But you are right.
.

Not nitpicking, just saying, it's like a hidden reserve.

$500 start price, will pull auction with no sale @ $200.

All fair and good.

I hope to grab a bargain or 2 for sure.

It's probably going to make it more encouraging for sellers, because they don't need to let them go for $50.

 

[neddy]

Not nitpicking, just saying, it's like a hidden reserve.

$500 start price, will pull auction with no sale @ $200.

All fair and good.

I hope to grab a bargain or 2 for sure.

It's probably going to make it more encouraging for sellers, because they don't need to let them go for $50.

Good points that you have raised Paul (particularly the last one) - and as usual you are right with regards the numbers etc.

I have amended the initial post / rules to clarify situation.

Many thanks.

 

[neddy]

The "dutch auctions" have got off to a flying start, and a couple of buyers got good deals yesterday.

The psychology of the process is interesting to me.

I know from subsequent PM's / emails that there were domainers out there waiting to post "sold" on both domains - but they were hoping the price would go down one or two further notches!

As I said in my initial post, it is like playing "chicken" with your fellow domainers.

One regrettable situation arose yesterday. I had been talking to a fellow domainer about buying photographyjobs.com.au, and had "motivated" him to do the deal. I told him to post "sold" on the thread,
but in a total fluke and coincidence, another member posted "sold" before he had the chance to.

I felt absolutely horrible - but to the disappointed member's great credit, he ultimately understood that the rules stated whoever posted "sold" first gets the domain. Thank you to him for that - and I have
made it up to him in other ways.

So the moral and lesson of this situation is: (regardless of whatever private correspondence you may have had with someone else):

The first person that posts "sold" at the particular price level is the winner. That's the rule of these "Dutch Auctions".
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