Online Auctions And The Law Of Supply And Demand

An online auction can be a great way to market yourfound in retail stores when the consumer exercised
business, but it can also be a place where you canenough patience.
deliver hard to find items at a substantial profit.This is one of the practical benefits of an auction.
Take for instance the Nintendo DS Lite. In theMany people think of auctions as a means of finding a
Christmas season of 2006 and 2007 the hand heldbargain, but it can also be a place where individuals go
game systems were in high demand. Store shelvesto find the rare and desired.
emptied just as quickly as units became available.Think of an art auction. Collectors from all points on the
Customers heard, "Sorry we're all out," more oftenglobe arrive and bid on one of a kind artwork or
than any of them wanted to.memorabilia. They will typically pay a very high price
For the online business owner it was possible to take aand with that price comes the knowledge that they
unit or two from their stock and sell it via auction.have something no one else has and perhaps many
Generally speaking the interest was incredibly strongwant.
with willing buyers paying three to four times the retailThe growth of online auctions is proof that both types
price of the units just to ensure they had it byof auctions are accepted among online shoppers.
Christmas.If you sell a product that is highly desired you may
When January came around the market for onlineconsider the possibility of taking at least one of the
auctions that continued to offer units at auctionhighly prized items and making it available exclusively
continued to be strong. Those who had Christmasat auction. The reason I suggest this is you can
cash were willing to spend it on this gaming devicepromote the fact that while you may be out of the
even if the auction price seemed absurd to others.product you are offering one at auction. This allows
As business owners these entrepreneurs wereregular customers one last opportunity to get
providing a service that ultimately brought them asomething they may have waited too long to
sizable profit. When the law of supply and demandpurchase. Additionally for those who have almost
was added to the scenario it was seen by consumersexhausted avenues of purchasing the item they can
as the only practical method to gain a coveted unit.use your auction link to find out more about you and
In most cases it was the consumers who actuallywhat you offer on a regular basis.
pushed the price to extreme highs. In many cases theYou can further promote goodwill in the above
bid threshold was not set beyond retail price. Thescenario by offering all proceeds to a predetermined
consumers created a bid war on available units in ancharity. In either event you can use the online auction
effort to make sure the gift arrived before Christmas.to market your business anytime of year.
For those who could wait the units were eventually