STEEMIT AUCTIONS - CAN IT BE DONE? LETS TRY & FIND OUT!

in steemit •  last year

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.

Steemit Auction Logo.jpg

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.

ebay auction 123.png

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.

dutch scratch auctions sample.JPG

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/

sleeping bag123.jpg

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: https://steemit.com/steemit/@jackmiller/charity-auction-steemit

2)– Three (3) boxes of new fridge magnets to be given/donated to a local Salvation Army retail store.

fridge magnets123.jpg

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: https://steemit.com/steemit/@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:

auction hamer.jpg

3)- Our family car that we have put up for sale.

VW For sale via steemit1.jpg

VW For sale via steemit5.jpg

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: https://steemit.com/steemit/@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.

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Great idea Jack - I look forward to seeing it in action!

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I'm fixing something on my Mr's PC back in Australia via TeamViewer so I am literally in Australia and Europe at the same time. Lost in space and time.

Like I said earlier, if we can get people thinking out of the box as far as "limitations" that we put upon ourselves go, then we can make Steemits platform here into a lot more than the "competition" has to offer.

"KEEP GOING AT IT" is my motto and it has saved my life more than once.

No matter how the baby steps go, I am certain that this shall open up the path to people using Steemit for a lot more and making Steemit EVERYTHING it can be.

I think this is a very interesting idea. The only question in my mind (atm) is in regards to shipping and shipping costs.

Working for a company that integrates shipping solutions for mainly US customers, I know that this should offer a base of shipping options for clients and Steemit would need to have a way to pay for that shipping in some way through the system (all Prepaid shipments auto-transferred from account to account perhaps?) with rating/shipping options that provide the most affordable services. On top of that, these services are not free, so there are always contractual costs involved.

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Yep, at this stage using the Scratch Dutch Auction principle, it needs to be clearly defined as to where the item can be shipped and how etc.

More work for the seller.

For digital goods it shouldn't be a problem, for hardgoods, well, lets see if this idea can be made into a perfect idea and work it from there.

I definitely see the potential to use this existing platform for charities/causes, will it work out for hardgoods? Lets find out.

My initial idea was "sale of properties" but that at this beta phase would be too much in my opinion, however, I am willing to try if I see that people out there can think out of the box as far as the way business gets done.

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At this point it's ALL thinking outside the box.

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Definitely!

When speaking to a mate about this idea his response was:

"If people can make millions using F...book to sell stuff, then there is no reason why you can not do it on Steemit too....."

I see a potential for more than just a "Classifieds " tab as the platform uses cryptocurrency and that just opens up boundless opportunities to all of us here.

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I completely agree with that assessment. Even the other platforms are using it in some way, why not try to make our own and try to make it better. That's like I keep thinking of a Steemit gaming network where the Steemians can go to play video games or RPG-style group games (D&D style).

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Sounds like a good one.

Hopefully you'll get the concept up and running and all the gamers here on Steemit shall kick in!

Very interesting project, lets see how far it goes. I'm in! @jackmiller

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If it can open the doors to this platform being used by Steemians for a lot more, then WHY NOT!

I'll be the guinea pig and if it paves the path to expanding the usage of this platform I'll be as happy as a pig in mud!

Interesting concept Jackmiller - we at Community News wish you the best in this enterprising and innovative endevour.

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Believe it or not, this was a thought process that came about from the idea of selling property via Steemit.

The concept here is quite simple, however I truly believe that this option is more than viable and if us Steemians put in the effort to make it happen it shall become an option that EVERYONE on Steemit can use in future.

Thanks for your support & look forwards to any feedback, suggestions or criticisms that you may have.

No "I" in the word TEAM!

To all the people who contributed to the post about "Having an IDEA" the other day:

@mackop

@shawnblanchette

@gniksivart

@bullionstackers

@suziescorner

@freakygeak

Here it is, this is what I was working on.

Look forwards to your input again.

@jackmiller units plan is sound. Janitor unot wishes to help test theory. Much pine sol @jackmiller unit. Please advise @automatedjanitor. image

Hey Mate. You put a lot of time and effort into this well written article. Deserves an upvote and Resteem. Cheers fellow teamaustralia man.

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Mate, I would have held back to try and make it better and better and better, but one of our Team Straya members basically slapped me with a "no better time than now" to post it and move forwards.

I guess my "minnowness" somewhat gave me a little bit of an inferiority complex, some sort of feeling similar to when an Officer asks "Does anyone know the answer?" and we all shut up because we don't want to look like dumb c.......

So I've taken the plunge and put it up, so lets give it a shot.

It could possibly get some of the Whales putting up an Auction and so on, which would definitely be rewarding for everyone as we all know the Whale effect here.... where the whales go.... the minnows follow!

Thanks for the support.

Great idea! Anything to put an end to Ebay

woooww...your smart people....thanks the follow...help me vote my post...god bless u