C2B Pioneer Netotiate: Apply Reverse pricing model to department store sales

At present, reverse pricing model for hotel booking, in fact, there is great potential to dig. Why does the electric business entrepreneur not extend this model to the sale of the department store goods? In general, department stores or online retailers are good products, waiting for consumers to come to buy, snapped. The use of the reverse mode of the Electronic business site, to the consumer part of the production decision-making and pricing rights, not only accurate positioning of user needs, looking for prospective users expect prices, but also let consumers experience autonomy and fun, thereby promoting sales. The reverse mode can be divided into two categories:

Reverse Production: The website provides a product design or sample, which the consumer votes to decide whether to produce mass. If the predetermined amount reaches a certain quantity, can contact the factory to put into production, the reservation person enjoys the discount.

Reverse pricing: Consumers prescribe the characteristics of the product they want to buy, bid, and then wait for the product provider to decide whether to accept the price.

The American online travel reservation website Priceline The first reverse pricing model and applied for a business method patent called the "Self-Service pricing system". Its mode of operation is that consumers on the internet to mark their own willing to pay airfare, hotel prices, and then Priceline in their own computer database to search for the price of the airline or hotel. Priceline's market capitalisation exceeded $23 billion trillion in 2011, and the reverse pricing model contributed half of the company's revenues and 60% of its profits. This model is visible in commercial success.

At present, reverse pricing model for hotel booking, in fact, there is great potential to dig. Why does the electric business entrepreneur not extend this model to the sale of the department store goods?

Founded in 2011, a U.S. electric company named Netotiate this April formally launched a beta website, began in consumer electronics products, electrical appliances, watches, instruments, and clothing and other products to try Priceline model, and get the support of venture capital. Netotiate's website name is taken from the "negotiation" (Negotiate) homophonic, which means that the commodity price is not a merchant's pricing, but depends on the buyer and seller bargaining results.

Users first search the Netotiate website for the items they want to buy, then select a retailer from the list and give their own quotes. Allow sellers to respond to consumer product quotes within 48 hours, deal, reject, or continue to bargain?

At the same time, sellers can also provide a simple plug-in through the site, the independent set discount prices, rebate, free shipping and other attractions to attract consumers to buy, in addition, can also be based on the number of visitors to set whether to open a special promotional activities. The consumer sees the merchant option of the Netotiate website, can submit the bidding application anonymously, the software will judge whether this transaction is reasonable, can deal, the seller does not have to worry because of excessive bargain and lose too much profit, the final decision right actually still is in the sellers hand.

To think about, several innovations in the field of electrical business, always around this goal: to create Low-cost, from the first wave of Flash, to the second wave, and then to the third wave of subscriptions, the path of entrepreneurship is to come up with a new model, a new gimmick, creating a lower price, so that new players can emerge. So the founder of Netotiate said, if you want to buy products from your website, but the price of products can not be decided by the buyer, it is easy to make the site become consumers come and go a number of sites. How not to the people? Change the model, create a low price may or feel the possibility of low price, can quickly grow.

Source: Bukop