Name Your Own Price
The "Name-Your-Own-Price" (NYOP) system is where a buyer specifies a price and a product and/or service, and asks sellers to match that combination. NYOP is a special type of reverse auction originally pioneered on the Internet by Priceline.com.
Name-your-own-price sales are considered "opaque" by marketers because buyers "don't know the name of the supplier (airline, hotel or car rental company) or the schedule (with air tickets) until after" they make a nonrefundable purchase. Suppliers benefit because they can sell to the most price-conscious travelers without publicly disclosing those low rates.
In Denmark there have recently (July 2006) been an addition in websites that incorporate and develop this business model. The site (www.prisminister.dk ) differs from the priceline strategy, by only collecting a deposit before the deal, rather than making the user commit 100% to the purchase. Furthermore the dealer is allowed to make a return offer, if the price the user requests is too low. After the bidding, if no dealer has accepted the user's price, the user receives the lowest bid amongst the dealers.
In 2011, NYP Digital an American digital marketing agency launched a NYOP business model where they literally allow their customers to tell them what they wish to pay for such services as Website management, SEO, Google Adwords, and Social Networking. Of course NYP Digital reserves the right to refuse offers if deemed unreasonable and encourages customers to get a feel for proper pricing by getting quotes from competitor companies.
There are a number of relatively new taxi services that are offering "Name your price" to their customers. The patrons of these taxi companies say they appreciate having the priviledge of being allowed to name their price, especially in a "down" economy.
The term can also refer to a method of online content distribution where consumers can download a product (usually a film or album) at a price they set, typically starting at one cent. Notable examples of this are the Humble Indie Bundles.
- Perkins, Ed (5 March 2006). "Dwindling name-your-own-price sites still yield some great deals". San Francisco Chronicle. p. F-9. Retrieved 2006-07-24.
- "Priceline.com de-emphasizes "Name Your Own Price"". USA Today. 11 April 2005. Retrieved 2006-07-24.
- An American Name Your Own Price company, (UrbanOffer ), also follows this concept as well. "Accepts bids on new white goods (Hvidevarer)".
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