Let's say you sell bikes. With spring coming, you decided to stock 10 of the coolest city bikes in the most popular colors. You know the demographics. You know people are riding city bikes more for errands. You know pink and neon green are a hit. The moment they arrived, seven of the ten bikes flew out the door for nearly the list price of $799. And now you've been looking at - and dusting - the last three bikes for months. What do you do? Discount all of them and just blow them out the door? Wait and hope for the right buyer next year - when those hot colors may no longer be all the rage? Hold them in inventory over the winter instead of investing in cross country skis? Donate them to a worthy cause and take the hit? What else can you do?
For seven people, your $799 sticker price was just fine. Everyone was happy with the transaction. To move these last three bikes, you can discount them down to your absolute bottom dollar. But, two things will happen: you will make your original buyers feel that they got a raw deal and you will devalue all other inventory from the same brand. With Bidrax, you have a much better option.
Let's say you'd be willing to accept $250 for each bike - your bottom dollar. Rather than putting that on the tag, you equip the bike with a Bidrax sticker and let your consumers decide what they want to offer. Maybe you'll have to go down to $250, but maybe not. Here's how it plays out:
Buyer 1: The first customer comes in looking for a bike for his daughter. He has a $500 price limit. Everything he's seeing is closer to $800. Show him the Bidrax bikes. Tell him it's a private bid situation (a lot like eBay, only instant) and have him download the app to his smart phone. His $500 bid is instantly accepted. Already you've made $250 more than you would have with a clearance sticker on the bike.
Buyer 2: The next customer comes in looking for a bike for errands around town. She's new to biking and not sure she wants to spend much on a bike. She takes the Bidrax bike for a spin and loves it. She already has Bidrax on her phone. She offers $300 and it's instantly accepted. Not only did you make more than your bottom dollar, you made a really happy customer. She tells everyone how great it was to shop at your store.
Buyer 3: The third customer comes in. His girlfriend's birthday is that day. He's desperate. He knows she wants a bike. He knows she wants a pink bike. He sees the Bidrax sticker and makes a quick offer for $400 that's instantly accepted. He's happy, you're happy and she's really happy.
In each of these situations, the customer's need to buy and your need to sell matched up perfectly. For each, it was a different price as each valued the bike and the transaction from their own unique perspective. What was the same for every transaction is that you made more money than you would have on a blow-out, you made the customer happy and you never devalued the brand in doing so.
Our Value Proposition to consumers is straightforward: Great prices, positive feelings, and a fun shopping experience.