The DubLi Difference
In order to explain the unique characteristics of the “DubLi Reverse Auction” and why it has become one of the most lucrative auction models in the world, it is important to touch upon some of the more familiar auction sites you’d typically see on the internet like eBay, eBid, uBid, Yahoo and others.
These types of auctions are categorically referred to as ”Traditional Auctions.” A traditional auction involves a “Seller” who is offering an item for sale while potential buyers compete with each other for the purchase of that item, which in turn causes the price of the item to continually increase in price until no buyer is willing to bid more…thus the auction concludes with the item being awarded to the “Highest Bidder.”
Now the characteristics of a “reverse auction” are in fact very similar to that of a traditional auction by the fact that it also involves a “Seller” which for the purpose of this illustration will be DubLi.com.
DubLi.com offers an item(s) for sale on their online auction website attracting potential buyers who compete with each other for the purchase of a particular item, just like you’d see in a traditional auction.
However, that is where all similarities end because in a “reverse auction” the price of an item is actually driven down with each bid placed by potential buyers until a single lowest buyer is identified. At this time the auction concludes and the item is awarded to the “Lowest Bidder.”
So to summarize the key differences between the two; in a traditional auction, the price for an item is continually driven up from the bids placed by potential buyers, where as in a “reverse auction” the price for an item is continually driven down from the bids placed by potential buyers.
The origins of the “reverse auction” date back to the mid 1990′s. The concept was initially conceived as a way for companies to bid on available government and private sector contracts.
With the advent of the Internet, a paradigm shift transformed the way that companies and governments could post important projects and accept bidding from potential buyers and contractors from around the world.
A Look Behind The Scenes: The Founder And The Foundation
DubLi.com’s founder, Michael Hansen, carefully studied and examined the “reverse auction” model starting in 2003 and concluded there was an even bigger opportunity for growth in the multi-billion dollar consumer market.
He envisioned showcasing the best selling in-demand products and services from the most well known and reputable companies in the world; only those with a household name would qualify.
The key to success would be in the ability to drive customers to DubLi.com‘s auction website. He felt that buyers would be eager to check out the auction and proceed to bid…only if the products and services had instant appeal and credibility to the consumer.
Michael Hansen, convinced that DubLi.com could become a huge success, began assembling the collective talents of computer programmers, software engineers, web designers and graphic artists. They set out to create the first ever “reverse auction” site on the Internet; geared specifically to the $300 billion e-commerce consumer market.
There were plenty of obstacles and set-backs along the way because everything had to be designed from the ground up. The concept of building a “reverse auction” portal for the consumer market had no predecessors as a guide, but after several years of perseverance and millions of dollars invested, DubLi.com made its public debut in the US in fall of 2008, and the rest as they say…is history.
To say DubLi.com was a success is an understatement; the concept was simple yet very business savvy. By providing the consumer with the ability to purchase name brand merchandise at ”yard-sale” prices, DubLi has become an instant hit with Internet shoppers around the globe.
The auction website at DubLi.com is open for business 7 days a week, 24 hours a day, and offers only the top selling genuine name brand items from the most respected manufacturers in the world. Some of the companies featured on the site are: iPod, iPhone, Hewlett Packard, SONY, Panasonic, LG, Samsung, Toshiba, X-Box, Nintendo, Mini-Cooper, Disney, Rolex, Louis Vuitton, Gucci, Coach and Burberry. Buyers can openly bid against each other causing the price to drop incrementally with each bid until one buyer is awarded the item and the auction is concluded. The success behind DubLi.com‘s “reverse auction” lies in the formula of being able to drive down prices incrementally with single bids placed by consumers until the price reaches a point where it becomes irresistible to the buyer and then it’s sold. How they are able to do this on a consistent basis 100′s of times per day is a trade secret, but DubLi.com’s founder was able to implement this revolutionary strategy for extreme discounting through the creation of “Credits”.
Categories and Credits
DubLi.com’s auction website there are several categories that the buyer can pick and choose from. Perhaps you are in the market for something in the “electronics section” like a new flat screen TV or digital camera; in the “household items” like an espresso machine or a juicer or in general a gift certificate from some of the top retailers like Wal-Mart and Target.
When you first enter the Dubli.com Fun Shopping site, you will see that there’s a “start price” displayed for each item in the auction and just below the start price is displayed a “current price” which is concealed by design. If a potential buyer wants to “view” the current price of an item, they spend 1 “Credit”, worth $0.80 (us) , and DubLi.com lowers the price of the item $0.25 (us).
Every time a person looks at the price, the cost of the item goes down $0.25 (us). Can you imagine if you spent $0.80 and found a product worth $500 showing the bid at $100 how excited you would be with your purchase. It would be well worth the $0.80 cost of the “Credit”.
With the Xpress auction for example the current price revealed to the buyer is “right price” for them after spending a “Credit”, then they have the option of purchasing the item immediately for its current price.
On the other hand, the buyer might decide to hold off purchasing the item by waiting to see if the “current price” will be driven down even further by other buyers using their “Credits” to reveal the current price on the same item.
The only risk to the potential buyer by choosing to wait is the chance of the item getting snapped up and purchased by another buyer, but that s also part of the fun part about knowing how to drive home a great bargain at DubLi.com.
The atmosphere on the website is electric with activity, as buyers feverishly bid against each other vying to secure the best possible deal on items they desire most. Many buyers end up paying a fraction of the cost for the item they purchase, which is wonderful…for most a savings in the neighborhood of 40%-60% is fairly common.
The customer whose final bid concludes the auction would be prompted for their method of payment. After the payment has been successfully processed, DubLi.com ships out the merchandise directly to their home or place of business.
A new item immediately replaces the item that sold, causing the process to repeat itself over and over again. Hundred’s of products are being bid on simultaneously in the auction website every single day.
The management of DubLi knows from past history that satisfied customers often return back to our auction website several times a month to check out what hot new items might be available.
This has been validated in EU, they saw many customers making multiple purchases. This also helps indicates what top selling products must always be on hand for our customers so they will continue shopping at DubLi.com.
The software DubLi developed enables them to determine what individual customers are bidding on. DubLi. then. targets these specific items of interest for future reference when they are featured again and they will immediately notify the customer via email with the specific item they’re looking for.
DubLi’s primary objective as a company is to provide superior quality products and excellent service and to maintain an ongoing rapport with its customers so they will enjoy the experience of saving money and continue coming back to shop with DubLi.
How Does DubLi.com Earn A Profit?
When a buyer purchases a “Credit” for $0.80 (us) and then spends it in the auction by revealing the “current price” of an item, DubLi takes $0.25 (us) off the top and immediately subtracts it from the current price. The remaining $0.55 is allocated to: referral commissions which are paid out monthly to DubLi Business Associates as marketing costs.
We realize a person may be wondering at this point. “How could a potential buyer expect to see any significant savings on an item they want to purchase when DubLi.com is only reducing the price of the item by a mere $0.25 per bid?”
That is a great question. Let’s face it, if only 10 people placed a bid on a particular item, it would only reduce the price by $2.50 which isn’t much, but multiply the number of potential buyers for the same item by 100, and now the discount jumps up to $25 which is certainly better, but when you multiply the potential number of buyers for the same item by 1,000 or more…now you’re talking about substantial discounts in the range of $250 plus. This can result in some a very significant savings for the customer!
How Does DubLi.com Attract Its’ Customers?
The reason DubLi is able to attract large numbers of potential buyers to Dubli.com website is centered primarily on two key facts. The first is that DubLi stocks and showcase only the best quality and hottest selling genuine merchandise found anywhere in the world. The second reason is the Dubli business model was built to funnel multitudes of traffic to the auction portal by utilizing one the best known forms of advertising that exists on the planet…that of course being word-of-mouth advertising or friends telling other friends.
Early on, DubLi realized that by rewarding people for their recommendation through referral based commissions, they could potentially attract untold numbers of customers from around the world to their auction portal, and that’s precisely what has happened.
Since the debut of DubLi.com DubLi has attracted literally 1000′s of business associates from around the world to our business model and over 3 million customers. DubLi.com’s auction portal is quickly becoming one of the most popular destinations to visit on the Internet, and these numbers are expected to increase exponentially in the months ahead.
Perhaps you can begin to see the benefits of DubLi.com’s reverse auction a little more clearly and with better insight…knowing that with this unique model, DubLi is still able to generate a profit while providing buyers the ability to purchase the hottest consumer in-demand products and services sold anywhere in the world; oftentimes at a fraction of their regular selling price.
It’s pretty simple and straight forward actually…on the surface that is – but it took an investment of tens of millions of dollars and 1,000′s of man hours in order to materialize the DubLi.com vision into its present day reality.
It’s one of the most fun and entertaining ways of saving money on brand new quality merchandise that’s ever been conceived; especially when you’re openly competing with other buyers to see who can get the lowest possible price for an item before it sells.
That’s what it’s all about…bringing real value to the consumer and pioneering an opportunity that is unmatched anywhere in the world for our business associates. Saving money is important in today’s economic climate where every dollar saved can make a real difference in a family’s budget and their quality of life.
And to make sure that you are really saving money, DubLi is now offering the Best Price Guarantee for the Fun Shopping Auctions. Following DubLi’s guidelines, if you find a better price than what you paid for the exact item, they will match it plus 10%.
Watch this short 3 minute video to see a brief demonstration and explanation of the three different types of auctions that are currently available at DubLi.com