| We are all familiar with the typical Auction that takes | | | | including Apple. As a matter of fact, if you were to |
| place at Sotheby's or any well established auction | | | | purchase it at the starting price and you found it for a |
| house. A group of people interested in certain works | | | | lower price anywhere online within the next two |
| of art for example, gather at the auction house and as | | | | weeks. DubLi will pay you the difference plus 10% of |
| each item, in this case each painting or sculpture goes | | | | the difference. |
| up for bid, the bidders begin to place bids on the items | | | | The next thing you will notice is that you can't see the |
| that are being auctioned off. The perceived value of | | | | "Current Price". It is grayed out - here is where the |
| the particular piece, in conjunction with the desire of the | | | | DubLi Credits come into play. If you want to see the |
| bidders to add the item to their collect, etc continues to | | | | current price you must click on the green "Show Price" |
| drive the price up until no one is willing to bid any higher | | | | button. Each time you click on the show price button it |
| and last highest bid gets to buy the item at the last | | | | cost you ONE dubli credit, or 80cents. Every time a |
| price bid. | | | | consumer clicks on the show price button, it lowers the |
| In the case of a reverse auction such as those that | | | | price of the product by 25cents. For example, if after |
| are gaining popularity at DubLi.com, the bidders or | | | | clicking the show price button the current price of the |
| participants actually drive the price down rather than | | | | nano was now at $95 and the start price was $174.00. |
| up. How the mechanism works in a reverse auction is | | | | That means the price dropped $79, and if you divide |
| very interesting and will be the center piece of this | | | | the $79 by 25 cents (remember the price drops |
| article. In the case of the DubLi Reverse Auctions, the | | | | 25cents every time the price is checked), that tells you |
| mechanism that allows the price to be driven down is | | | | the price has been checked 316 times. |
| very simple, yet very ingenious. | | | | The flip side of that is the consumer/you spent |
| The first thing that draws consumers to the auctions is | | | | 80cents and saved, in this case, $79. That is a great |
| that all the products are brand new, brand name and | | | | deal for you the consumer. Even if you had only |
| fully warranted from companies like LG, Panasonic, | | | | saved $40, I think you would agree it was well worth |
| Apple, Sony, Mercedes Benz, BMW, Audi, Gucci, Louis | | | | spending the 80cents. |
| Vuitton and many more. Add to this the potential of | | | | At this point you now have a decision to make. You |
| purchasing these brand names at very significant | | | | can decide this is a GREAT price and you can click |
| discounts; sometimes as much as 95% off the retail | | | | the "BUY NOW" button and you can purchase the |
| price and you have the formula for creating some | | | | Nano for $95. However, you can't sit and think about it |
| very exciting buying circumstances. The kind of buying | | | | too long, because if someone else, anywhere in North |
| circumstances that people love to talk about. In other | | | | America, clicks on the "SHOW PRICE" button before |
| words, the auctions create perhaps the most | | | | you click on buy now, you will loose the ability to |
| significant viral marketing tool online today. | | | | purchase the Nano and will have to click the show |
| Anyone can participate in a DubLi Reverse Auction; | | | | price again in order to grab it. |
| the only requirement is that they must have a bank of | | | | You begin to see that the auctions not only offer the |
| DubLi Credits, with each credit costing 80cents. The | | | | consumer the "POTENTIAL" to purchase products at |
| consumer then finds a product in any one of the 3 | | | | very significant savings, but they also create a lot of |
| reverse auctions; the Express Auction, the Zero | | | | excitement and a lot of buzz online. You can imagine |
| Auction or the Unique Bid Auction. The credits play a | | | | how fast it spreads online as consumers are posting |
| different role in each of the three auctions. | | | | their successes on Facebook, twitter, etc. And the |
| The Express Auction: In the express auction the | | | | more people that come into the auctions, the faster |
| consumer basically buys when he or she thinks the | | | | the prices drop; the faster prices drop the more people |
| price is right. For example, if you were to pick out an | | | | come into the auctions. It's like pouring gasoline onto a |
| Apple iPod Nano, you would click on the image of the | | | | fire. |
| nano which would bring it to the top of the page, | | | | As an example, on June 27th 2009, David Duncan of |
| allowing you to see a complete product description | | | | Orlando, Florida bought a brand new C300 Mercedes |
| before you had to spend a credit. The first thing you | | | | Benz for $8,000.50. The retail value of the car is listed |
| will notice is that the "Starting Price" is guaranteed by | | | | at $37,000. David can't help himself and he is telling |
| DubLi to be the lowest retail price you can find | | | | everyone he has every met what a great deal he got |
| anywhere online of all the major online retailers, | | | | at DubLi's Reverse Auctions. |