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. More recently the Name-Your-Own-Price system has been more transparent for consumers who can choose the business(es) they want to ask for the NYOP deal as developed by Chiching.com.
Originally, 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 buyers/travelers without publicly disclosing those low rates.
In Denmark there have (July 2006) been an addition in websites that incorporate and develops 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.
Recently (June 2013), a San Francisco company Chiching.com created a transparent NYOP model that allows buyers to select the businesses that they want to buy from as well as the pricing and value that they want to ask for. This new model is dynamic. A customer creates an offer and sends it to the businesses they select. The first business to accept the offer will accept the discounted voucher as payment toward the total bill. This is a highly dynamic model that gives businesses the ability to only accept offers that are profitable and timely. After the bidding, if no dealer has accepted the user's price, the user receives nothing. If a businesses has accepted the offer's discount terms, the customer must use their voucher during the business hours that were specified on the voucher. This transparent use of NYOP system helps establish goodwill in the marketplace and educated consumers what types of deals are reasonable. There are also a number of relatively new services that are offering "Name your price" to their customers. The patrons of these service companies say they appreciate having the privilege of being allowed to name their price, especially in a "down" economy. Internet by taskrabbit.com.
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)".
- "Accepts bids on new white goods (Hvidevarer)".
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