As prices descend, buyers bid on part or all of a lot of multiple items, such as tulips or car radios. The auction continues until all the goods are sold or a previously established minimum price, set by the seller, is reached. Two online volume discounters, Mercata and Accompany, use the volume discount principle to offer group buying online. Customers wait for a specified amount of time for a response by e-mail from prospective sellers. Once the response is received, the buyer chooses which seller to buy from, if at all.
Savvy consumers can also join together and encourage vendors to offer volume discounts.
In addition, the consumer controls what information the seller gets and when. The identity of the buyer remains unknown until the buyer initiates the transaction. Clemens also boasts a success rate of about five responses to each customer request. In the first week, about 50 vendors signed up and will start accumulating points that currently can be redeemed for traveler's checks. Mygeek chief Chad Little says the inspiration for the company's name stemmed from the stereotypically endearing qualities of geeks.