We all wish to make Steemit the most it can be. We want Steemit to be better than the rest!
So taking into consideration everything that the platform has to offer and after talking to some fantastic people on Steemit S.K. & O.B.B. Who have helped me with words of wisdom, the conclusion that I have come to is that Steemit can be used as an Auction site.
So without dragging the intro out, here it is!
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.
Implementation Plan/Statement Of Work(SOW):
As per the above proposal it is necessary to carry out a number of test auctions so as to confirm what is necessary for Steemit users to take into consideration and implement into their future acutions.
Both types of auctions, meaning charitable and sale of goods need to be tested.
This means that goods must be acquired or already owned so as to go ahead and test this model of Auctions via Steemit. So as to ensure that at this beta/test stage all transactions are in Steem or SBD.
First auctions for this testing and reviewing phase:
Charitable Type:
1)- Thirteen (13) Sleeping bags to be given/donated to Womens Community Shelters, http://www.womenscommunityshelters.org.au/
13 brand new sleeping bags which cost $35 AUD each and were selling via an online classifieds site at $60 AUD, with a RRP of $79.99.
For the purpose of this Dutch Scratch Auction the listed price shall be $28 as my upvoting power is not high so the first $8 per sleeping bag ($104 total) shall be my first “Scratch” (Upvote).
As soon as the total in upvotes covers the remainder of the cost, the sleeping bags shall be delivered to the above charity.
AUCTION LISTING: @jackmiller/charity-auction-steemit
2)– Three (3) boxes of new fridge magnets to be given/donated to a local Salvation Army retail store.
Each box contains 98 packets of Fridge magnets which cost $1 AUD each and were selling at the local trash and treasure (flea market) for $3.50 per packet (2 for $7). Similar products selling on the internet for approximately $5 per packet.
For the purpose of this Dutch Scratch Auction the listed price shall be $0.80 as my upvoting power is not high so the first $0.20 per pack ($58.80 total) shall be my fist “Scratch” (Upvote).
As soon as the total in upvotes covers the remainder of the cost, the three boxes shall be delivered to the above charity’s retail store.
BY UPVOTING AND RESTEEMING YOU ARE HELPING THE ABOVE TWO CHARITABLE AUCTIONS!
AUCTION LISTING: @jackmiller/charity-auction-2-steemit
So the above two auctions are the Charity Dutch/Scratch Auctions.
I will also put up one sale of an item Auction at this stage of the project and that is:
3)- Our family car that we have put up for sale.
The list price in the classifieds is $15,900.00 But for the purpose of this auction (put my money where my keyboard is) I shall start the Action off at $13,900.00. (So it is listed here at a dirt cheap price to begin with).
Note the car is in Sydney NSW, so the buyer shall have to be A. From Australia and preferably from NSW.
Everyone can contribute to the Auction by UPVOTING and RESTEEMING.
AUCTION LISTING: @jackmiller/automobile-auction-1-steemit
ALL OF THE ABOVE LISTED AUCTIONS SHALL BE LISTED SEPARATELY AS POSTS.
I SHALL ADD LINKS BELOW AS I POST THEM.
This post here can serve as a think tank, so any advice, suggestions and so on at this beta phase of the project would be not just welcome but out right appreciated!
Look forwards to reading what everyone has to say about this project and how it could expand the ways Steemit is used on the internet. Remember this is not something that is exclusive to any one user, it shall be a tool for everyone here, so best we test it out and get it right so that in future all us Steemians can make the most of Steemit!
Note: All upvotes from this post shall go towards the above actions in order of listing, first 1, then when it is over, to 2 and then when that auction is finished, last but not least 3 giving some lucky person a bargain.