Ever thought of a blind auction in your store?
By Jerry Epperson -- Furniture Today, August 26, 2002
Like all parents, I am very proud of my son. I learn from him whenever we are together, which is too seldom these days because of his college studies, his girlfriend and his business, not necessarily in that order.
He and his best friend started an Internet business five years ago when they were 15, operating out of his partner's sister's bedroom and keeping inventory in their garage. I thought it was a great chance for them to get real experience. I had no idea that it would develop as far as it has.
This week they will receive their first container from China through our nearest port, Norfolk, Va. Its cost? More than $40,000, but they have credit lines through American Express that can handle it. They also have consumer credit accounts with MasterCard, Visa, Discover and American Express, and delivery accounts with UPS, FedEx and others. Did I mention they deal with consumers worldwide?
Last week they returned from the tobacco show in Las Vegas. They took their employee with them and had one of the 900 "showrooms" at the convention center at the Venetian Hotel.
They sell over the Internet in several ways, as I understand it. First, they operate premiumhumidors.com and sell humidors, obviously, to consumers everywhere. Second, they also operate wholesalehumidors.com that services tobacco retailers. Finally, they have a high-profile site on eBay where they auction humidors and fully assembled model boats, a new venture for them.
On the eBay site, they show a professionally done digital photo of the item to be sold. The photo shoots are often done in my formal living room, which is good because my wife won't let the rest of the family in that room. At least I can see pictures of it on the Internet.
They offer the item for auction on eBay with no minimum bid, and let it run for a week or two. They monitor the bids constantly. When the eBay time ends, they look at the various bids. If they have a $30-cost item, they may contact everyone who bid over $40 and send them the humidor. Most people assume there is only one of the item, but the boys might send out 40 or 50. Isn't that neat? And profitable.
Here's an idea: If you've got too much inventory of an item on your floor, try a no-minimum-bid blind auction for shoppers in your store. Put an unpriced sofa, for example, between two higher-priced sofas and allow people to write bids and put them in a box.
At the end of the auction, you may be able to sell a large number of these items at a range of prices above your cost. Everyone you call will believe they are a winner. Soon, traffic might improve as your customers drop by often to see what's being auctioned.
A stupid idea? Probably, but I've heard worse.
