OK, what we’re looking at here folks, this is the page that we’ll see on the European site and also in the US site until the shopping portal opens very shortly. Here’s what we’re going to look at. We are going to look at three different auctions: The Xpress, the ZerO, and the Unique bid. Again folks, we’re talking the top brand name items in the world at the absolute best prices.
Now, let’s go the US site, the North American site. If there’s one thing I want to point out, it’s this: You’re not going to see the shopping tab yet. That’s just about ready to open. Now, going to the North American site, here’s what we’re looking at. We’re looking at brand name, brand new merchandise, the top brand names in the world.
I’m going to look at the Xpress auction. I’m going to click on the Xpress auction and then I’m going to drop down here so I can click on the “show all button” because I want to get all the items, the hundred or so items in this auction up on the page, so we can scroll down through them just to get a sense of what kind of items we’re talking about here. If you look starting at the top, here on the left hand side you see “current options”. Now, with these current options, we can see named brands like Farberware, like Nostalgia Electronics like Dillard’s gift card, Nintendo DSi, a couple of different LG TVs, Lego, Cannon cameras, best buy $500 gift cards, Amazon dot com gift cards, Nikon cameras, Bobbi Brown makeup, Hannah Montana, Xbox, iRobot Dirt Dog, Channel, Apples, Mac, Mini Karaoke system, I robot dirt dog, more Samsung telephones, Epson projectors, HP computers, Sony Erickson telephones. As you can see folks, the list just goes on and on, Callaway golf clubs, Burton snowboards.
Now let’s just take, for example, one item. Let’s click on the HP elite notebook. What see, by clicking on that item, you see front and center, that item up close and below that you can also see anything you need to know about that item. And again, folks, these are items that we already know what they are. They have spent billions of branding these types of items. Now, what we’re looking at here is to start pricing this auction of $1129.71. Here’s what’s exciting about DubLi. DubLi has a team of people that do one thing every day. They are analyzing who has the best price on this HP elite notebook brand new from the reputable recognizable retailers whether they’re online or off line. So, in case, there is any sale price going on, DubLi wants their starting price in the auction before it starts going down to be the best price you can find online.
Now, here’s what’s exciting. Here’s what we can see below the start price. We can see your current price. It’s hidden behind this box of question marks. Now, to be able to actually see this price, we have to click on the “show price” button and that will require what’s called a DubLi credit. A DubLi credit cost 80 cents.
Now, why would somebody spend 80 cents to check out a price? Well, if you knew you had a hundred percent certainty of getting prices below retail, would you be willing to spend 80 cents? Of course you would. By jumping my car and go to Best Buy looking for this particular computer, it’s going to cost me more than 80 cents of gas and then once I get the price point there, I’m going to go to two other Best Buys because I know I can still work a better deal with a different store. So, for 80 cents, I can click on show price and have a look at a dropping price.
So, let’s do that. Here’s what just happened. By clicking on this particular item, the price just dropped by 75 cents. It wasn’t even $1000. It dropped 25 cents because 25 cents of that credit goes to price drop and then it brings up a “buy now” button.
Rather than wait for another minute or so until somebody else clicks on show price, let me show you again what happens when you click on show price. I’m going to use another DubLi credit. I don’t shop this way. It’s illogical. I just, for point of illustration, I’m going to use at 80-cent credit. The 25 cents goes to drop in the price. The $999.75 just went down to $999.50. I now have a choice as a consumer to buy this item. Right now, it’s down about $130. It’s not a good enough price for me yet so I will not hit the “buy now” button. But some consumers will come back in a day or so and they will check this item again to see if they can get a better deal. There’s obviously a risk that it may be gone when then get back to find the item. But that’s OK. There will be another item loaded in it’s place, maybe not a computer but something else.
Let me show what happens in the reverse auctions in the Xpress auction. Under completed auctions, what we could see it this: A $169.99 Nintendo DSi went for $9.50. A $29,050 Mini Cooper went for 25,070. Somebody saved $4000 off the Mini Cooper. Here’s one: A $60 Disney Pixar Wall-E Command Unit went for $4.25 and they’re all over the board folks. A $300 JC Penney gift certificate at $232.25. Down here we’ve got an Apple TV. A $224 Apple TV went for $24. So as you can see, the prices were incredible. They’re all over the board but they’re incredible.
Here’s another auction called the ZerO auction. Here’s how it works: It works exactly like the Xpress auction. There is one difference. You cannot buy this item regardless of the price. So let’s scroll down and let’s pick this Samsung i900 Omnia telephone. Now, again, I click on the item. We can see what we need to see in terms of the viewing of the item. We can also look down below for the product description. It tells us everything we need to know about that product. Once again, you see the start price of $490, OK? What we can’t see again, is your current price hidden behind the box of question marks. Once again, it requires a DubLi credit to check the price. So the 80-cent credit goes to clicking on the show price. The 25 cents of that credit will drop it.
Now, here’s one distinct difference is I press “show item”. What you see is the price of $328.50. That’s probably down about $160. The only challenge for the buyer is you can’t buy it because there is not a “buy now” button. The reason is you can only win this item. And the way you win it is if you are the lucky person that happens to catch this when it’s down to 25 cents. You click on using your DubLi credit; 25 cent of the 80 goes to price reduction. Therefore, it takes from 25 cents down to zero. You win the item. You get it for free plus the cost of the credit you may have used.
So, you’re saying, “OK, everything really goes to zero?” There you go. A $370 Apple iPod touched zero. Xbox, zero. Toys R Us gift cards zero. getting a little enthusiastic, Oppo DVD player. Everything goes to zero.
Folks sometimes say, “Well, they probably get you on shipping.” Well let’s have a look. Up here, shipping points, one shipping point and what we see is the zip code for where I live here in Las Vegas is 89135. Let’s calculate and see what the shipping point is. One shipping point cost $4.95. We kind of moved that even off the table. Folks, the prices really go for zero. You just have the cost of the credits.
Now, there’s one other auction that I want to show you but before I do that, let me show you how impressive a marketing model of this nature is. We have a $200 gift card. What we now is this: It took about 800 clicks to take it to zero because every credit drops to 25 cents. So, it takes 4 credits to drop to $1. So if we look at a $200 price drop multiply it times to 800 clicks.
Now, watch this: You have three parties: buyer, seller, marketer. The buyer gets full retail price because every 25-cent drop goes to the retailer, or the seller which is DubLi. The buyer gets a great deal whether it’s Xpress option or if it’s a ZerO bid because they decided when to spend the credit or hit the “buy button”. And for us, the marketers, let’s multiply each credit by 55 cents because that’s what’s remaining from each credit after the 25-cent price drop. We make 440, folks, on the sale of a $200 item. That’s the most brilliant model I’ve ever seen.
Now, let’s go back up. I want to show you one more auction.
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