His 38 homeowners in Singapore were a natural grouping, since they lived in two developments built by the same company. As a result, the banks avoided a variety of research and administration expenses. The company pledges to auction a certain number of products, mostly electronics, to the highest bidders, who make their offers either via phone or the Web, without knowing what others have bid. The firm pledges to sell even if it overestimates demand. Smart consumers can bid low and try to win products for peanuts.
Consumers seem to like their odds.
It sold every one of the 1,300 items it put up for sale last month. Managing director Haim Dvir says his suppliers, mostly big Japanese electronics firms, are sensitive about their products being sold at a big discount, so he doesn't publicize winning bids. Designing auctions is a delicate matter indeed. Both dollarDEX and CollectiveJuice have filed patents for their models, while Hong Kong's Tender is licensing a system from Israel. Mr. Ho says that because Asian companies face losing some control over their pricing, they'll probably want to start setting up auction-type sites where the rules are more in theirfavor.