STEEMIT AUCTIONS - IT CAN BE DONE!

Steemit Auction Logo.jpg

The mission statement here is:
To use auction techniques to help derive a unique and transparent sales mechanism which compliments the Steemit platform.

It is rather obvious that a classic auction would be hard to manage on the existing platform, so that is pretty much ruled out as far as options go.

So then, what other options are available?
After researching the various auction platforms out there, I have come to a conclusion that there is an option that can be used as a foundation to starting up an auction like activity here on the Steemit platform.

The basis would be founded upon the principle of:

Dutch Auctions

What is a Dutch auction?

A Dutch Auction is a type of auction in which the auctioneer begins with a RRP for a product and which is then gradually lowered in price until some participant is willing to accept the auctioneer's price, or the sellers reserve (minimum sale) price is reached.

The person who accepts the price is the winner of the auction and has to pay the last announced price. These types of auctions are also known as clock auctions or open-outcry descending-price auction.

The Dutch auction guarantees that the buyer achieves the best possible price.

This is the exact opposite of a traditional auction where bidders may be willing to bid considerably above the RRP for the item.

That is a brief description of a basic traditional Dutch Auction, however there is another variation of Dutch auctions out on the market, these are called (Dutch) Scratch Auctions.

A Scratch Auction or Scratch Dutch Auction is based on the above principle, however the buyer does not see the current price of the product. Each bidder must first purchase bid tokens which are set at a fixed price. Each time the bidder uses a bid token to reveal the price, the price then decreases by a certain percentage of the bid token value. (“scratch” being derived from the instant scratch lottery tickets).

For example.

A clock radio is put up for sale with a RRP of $20.00
There are hundreds of interested buyers out there who have purchased $1 bid tokens.
Each time they scratch away to see the current price of the product, the price of the product is reduced by $0.80.
(So the auction house makes 20 cents per bid).
Let’s say I am the 10th person to scratch away (at $1 per scratch) and the BUY NOW price is at $12.00, I have a set time limit in which I can choose to buy it. If I think that $12 is a good price then I buy it and the auction is closed. I pay the $12.00 and the clock is mine.

Conclusion 1:
From the above descriptions of two similar types of auctions I see a potential foundation for live auctions here on Steemit.com.

HOW?

Well I see two potential types of auctions that can be done here as per the above general principal of Scratch Dutch Auctions.
The only differences being:

A. There is no hiding the amounts of funds collected via upvotes, as they are visible to everyone.
B. The Auction is closed once the item is sold and the bill of sale/contract is put up online as proof of a legitimate sale.
C. The sale price must be only available to Steemit members, otherwise there is no reason for Steemit members to reduce the price (via upvotes) of the item being auctioned off.

Conclusions:

A. These types of open and transparent “Dutch” auctions here on Steemit can be used to sell something.
&
B. They can also be used for give aways, charitable types of activities.

HOW?

A. Well, the sale of an item is pretty much straight forwards, not much to explain. The product gets advertised here, the upvotes are converted to a USD value at the end of the week and that is then deducted from the original RRP price listed. The difference is paid for by the buyer and everyone is satisfied.

B. An item is listed that is intended for a charity/cause and until the listed/RRP price is achieved, the item keeps getting relisted. Once the listed/RRP is achieved via upvotes, the item goes to the charity or cause that is listed in the auction and again everyone is satisfied.

So there is no actual paper money exchanging hands, unless agreed upon between the buyer and seller. For the most part the idea is that Steem or SBD be used to complete the transactions. Hence ensuring that everything is 100% legal/legitimate.

MOST IMPORTANTLY:

Don't forget to add "classifieds" in your tabs when posting
&
Share a link to your post in the Steemit #classifieds chatroom: https://steemit.chat/channel/classifieds

TO CUT A LONG STORY SHORT!

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