Name Your Own Price
From Wikipedia, the free encyclopedia
The "Name-Your-Own-Price" (NYOP) system is where a buyer specifies a price and a product and/or service, and asks sellers to match that combination. NYOP is a special type of reverse auction originally pioneered on the Internet by Priceline.com.
Name-your-own-price sales are considered "opaque" by marketers because buyers "don't know the name of the supplier (airline, hotel or car rental company) or the schedule (with air tickets) until after" they make a nonrefundable purchase.[1] Suppliers benefit because they can sell to the most price-conscious travelers without publicly disclosing those low rates.[1]
By 2005, Priceline began to de-emphasizes this system,[2] and added published price options on their websites.[1]
In Denmark there have recently (July 2006) been an addition in websites that encorporate and develop this businessmodel. The site (www.prisminister.dk[1]) differs from the priceline strategy, by only collecting a deposit before the deal, rather than makeing the user commit 100% to the purchase. Futhermore the dealer is allowed to make a return offer, if the price the user requests is too low. After the bidding, if no dealer has accepted the users price, the user receives the lowest bid amongs the dealers.[3]
[edit] References
- ^ a b c Perkins, Ed. "Dwindling name-your-own-price sites still yield some great deals", San Francisco Chronicle, 2006-03-05, p. F-9. Retrieved on July 24, 2006.
- ^ "Priceline.com de-emphasizes "Name Your Own Price"", USA Today, 2005-04-11. Retrieved on July 24, 2006.
- ^ Accepts bids on new white goods (Hvidevarer).
