Pricefalls, LLC
Encyclopedia
Pricefalls, LLC is an American Internet company that manages Pricefalls.com, an on-line reverse auction website that is based on a Dutch Auction
or descending pricing model
. Pricefalls acts as a sales channel for small- to medium-size businesses who wish to sell their products in an online marketplace where prices constantly decrease. The company was founded in response to user frustrations
with the eBay
model, with pronounced emphasis on customer service
and dedication to the sellers who use the site.
The company was founded in June 2008 out of an apartment close to Bates College
in Lewiston, Maine
. The company relocated to Las Vegas, Nevada
in January 2009.
PayPal
receipt from a fraudulent user, and additionally had paid fees to list his items, losing money. As a result, Elliot permanently discontinued his activity on eBay and began to think of alternative ways to sell online.
After returning to Bates, Elliot learned of the Dutch Auction and its application in the tulip industry. He then sought out other students capable of technically executing a reverse auction website. His search led him to a partnership with Bates alumni Peter Schaefer and Chad Casey, the creators of a small web media company called Lautus Design.
This type of auction is convenient when it is important to auction goods quickly, since a sale never requires more than one bid. Theoretically, the bidding strategy and results of this auction are equivalent to those in a sealed first-price auction. The Dutch auction is named for its use in the Dutch Tulip Craze.
As of August, 2010, the internet marketplace is used by upwards of 175 businesses actively listing their inventory. They serve businesses by creating online storefronts that prominently display the business's logo, product listings and, optionally, a phone number.
Pricefalls.com has been listed as #96 in a list of The World's 230 Most Exemplary Websites.
As of November 1, 2010, Pricefalls, LLC has added Joshua Weaver, a Western Michigan University
graduate, as the Director of Communications.
As of January 1, 2011, Pricefalls LLC has added Matthew Twitchell, as Director of Inventory Management.
For falling price auction listings the price will start off at the price ceiling, and drop at a constant rate until the item is purchased or until the time interval at the price floor has expired. The “Catch
It Before It Falls” duration is before the listing duration, and marks a period of the Pricefalls sales cycle during which the item remains at the top price (price ceiling. The Catch it before it falls
period allows consumers to purchase a product they really want with little competition. It also allows the merchant to experience the most profitable sale possible.
“If it Hits”: When bidding on Pricefalls, users can set a price that they would like to pay for an item. If the price falls to the set bid without anyone purchasing it first then the item is automatically purchased. In the case of a multiple quantity listing, the highest bids win in the order of magnitude.
“Catch it Now”: As the product price is falling buyers may also choose to purchase an item right away. To purchase an item at its current price buyers can click the “Catch it Now” button to finalize the transaction and the quantity purchased is taken off the market. Subsequently, the price falls on the remaining quantity until the maximum quantity is sold or the price floor is reached.
If a buyer has made a bid on an item and has won, the buyer can submit payment for the item by looking in the “Won Items” folder in “My Account”. The buyer is then directed to Paypal (or Authorize.net) to submit payment.
In order to link buyers directly to a sellerʼs payment gateway, the Paypal Id (email associated with the sellerʼs Paypal account) is imputed into the payment method field upon listing. This is done in both individual listings and bulk listings. In a bulk listing, all items are placed under one payment gateway, whereas in individual listings, payment options are done on a per item basis. Stores select their “Viable payment options” upon setup. The form of payment that a store accepts is displayed on the store page under the “Policies” tab as well as in every item detail page under the “Payment Methods” tab.
Although uncommon, in some circumstances a seller may not be able to accept payment. In some cases, Pricefalls is willing to accept payment for these companies as a dropship relationship.
(USPTO) issued a Notice of Publication for the “Pricefalls” logo, (Serial #http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77609332]) and for the ʻPF” logo, (Serial #http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77609341]); for the slogan “Where Your Bid Wins”, (Serial #http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77609698]) on March 24, 2009; and for the slogan ”Catch It While You Can”, (Serial #http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77840574]) on March 22, 2010; In order to check the status of the applications enter the application serial numbers at the following URL: http://tmportal.uspto.gov/external/portal/tow.
Dutch auction
A Dutch auction is a type of auction where the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined reserve price is reached. The winning participant pays the last announced price...
or descending pricing model
Reverse auction
A reverse auction is a type of auction in which the roles of buyers and sellers are reversed. In an ordinary auction , buyers compete to obtain a good or service, and the price typically increases over time...
. Pricefalls acts as a sales channel for small- to medium-size businesses who wish to sell their products in an online marketplace where prices constantly decrease. The company was founded in response to user frustrations
Criticism of eBay
eBay has its share of controversy, including cases of fraud, its policy requiring sellers to use PayPal, and concerns over forgeries and intellectual property violations in auction items.-Fraud:...
with the eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
model, with pronounced emphasis on customer service
Customer service
Customer service is the provision of service to customers before, during and after a purchase.According to Turban et al. , “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer...
and dedication to the sellers who use the site.
The company was founded in June 2008 out of an apartment close to Bates College
Bates College
Bates College is a highly selective, private liberal arts college located in Lewiston, Maine, in the United States. and was most recently ranked 21st in the nation in the 2011 US News Best Liberal Arts Colleges rankings. The college was founded in 1855 by abolitionists...
in Lewiston, Maine
Lewiston, Maine
Lewiston is a city in Androscoggin County in Maine, and the second-largest city in the state. The population was 41,592 at the 2010 census. It is one of two principal cities of and included within the Lewiston-Auburn, Maine metropolitan New England city and town area and the Lewiston-Auburn, Maine...
. The company relocated to Las Vegas, Nevada
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
in January 2009.
Origins & History
The idea of Pricefalls was first imagined in 2008 by Elliot Moskow, an economics major from Bates College, located in Lewiston, Maine. Out of a need to earn extra cash that summer, Elliot obtained confiscated jewelry from police auctions in order to sell them on the popular shopping site eBay. He started with a few rings, some of which sold to buyers with Nigerian shipping addresses. Elliot had received a fraudulentInternet fraud
Internet fraud refers to the use of Internet services to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme....
PayPal
PayPal
PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
receipt from a fraudulent user, and additionally had paid fees to list his items, losing money. As a result, Elliot permanently discontinued his activity on eBay and began to think of alternative ways to sell online.
After returning to Bates, Elliot learned of the Dutch Auction and its application in the tulip industry. He then sought out other students capable of technically executing a reverse auction website. His search led him to a partnership with Bates alumni Peter Schaefer and Chad Casey, the creators of a small web media company called Lautus Design.
Use of the Dutch Auction Model
In a Dutch Auction, the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined reserve price (the seller's minimum acceptable price) is reached. The winning participant pays the last announced price. This is also known as a "clock auction" or an open-outcry descending-price auction.This type of auction is convenient when it is important to auction goods quickly, since a sale never requires more than one bid. Theoretically, the bidding strategy and results of this auction are equivalent to those in a sealed first-price auction. The Dutch auction is named for its use in the Dutch Tulip Craze.
Recent Developments
Pricefalls.com has grown consistently since announcing its public beta in September 2009, after successfully raising USD $400,000 in seed funding from private investors. Although the name "Pricefalls" refers to the descending price as the basis for the business model, recently they have expanded the platform to allow for fixed price listings as well.As of August, 2010, the internet marketplace is used by upwards of 175 businesses actively listing their inventory. They serve businesses by creating online storefronts that prominently display the business's logo, product listings and, optionally, a phone number.
Pricefalls.com has been listed as #96 in a list of The World's 230 Most Exemplary Websites.
As of November 1, 2010, Pricefalls, LLC has added Joshua Weaver, a Western Michigan University
Western Michigan University
Western Michigan University is a public university located in Kalamazoo, Michigan, United States. The university was established in 1903 by Dwight B. Waldo, and as of the Fall 2010 semester, its enrollment is 25,045....
graduate, as the Director of Communications.
As of January 1, 2011, Pricefalls LLC has added Matthew Twitchell, as Director of Inventory Management.
Selling on Pricefalls
When selling an item, users proceed through a six-step process, prompting the user to:- Choose between creating a Dutch Auction or a Fixed Price Sale.
- Choose a category for their listing and up to 3 subcategories.
- Enter a listing title, brand name, condition, and a detailed description of the item.
- Set their pricing. If the merchant chose the falling price method in step one they are prompted to enter the price ceiling (the most they think someone would be
willing to pay), and price floor (the least they are willing to accept), along with a listing duration, and an optional duration that delays the falling of the price (“Catch It Before It Falls” duration). If the merchant chose the fixed price method in step one they simply enter the fixed price that they would like to list the item for. Sellers may also upload up to seven product images, and choose extra exposure options that they would like to add to their listing. - Choose how they would like to accept payment for their items, and provide detail into applicable return policy.
- Review the listing before submitting it to appear on Pricefalls. Upon submitting the listing, the auction will begin.
For falling price auction listings the price will start off at the price ceiling, and drop at a constant rate until the item is purchased or until the time interval at the price floor has expired. The “Catch
It Before It Falls” duration is before the listing duration, and marks a period of the Pricefalls sales cycle during which the item remains at the top price (price ceiling. The Catch it before it falls
period allows consumers to purchase a product they really want with little competition. It also allows the merchant to experience the most profitable sale possible.
Buying on Dutch Auctions
Pricefalls enables consumers to purchase merchandise that has been listed using the Dutch auction by using one of two distinct methods: “If it Hits” bids, or “Catch it Now”.“If it Hits”: When bidding on Pricefalls, users can set a price that they would like to pay for an item. If the price falls to the set bid without anyone purchasing it first then the item is automatically purchased. In the case of a multiple quantity listing, the highest bids win in the order of magnitude.
“Catch it Now”: As the product price is falling buyers may also choose to purchase an item right away. To purchase an item at its current price buyers can click the “Catch it Now” button to finalize the transaction and the quantity purchased is taken off the market. Subsequently, the price falls on the remaining quantity until the maximum quantity is sold or the price floor is reached.
Buying on Fixed Price Listings
Prices on fixed price listings remain the same throughout the auction. Buyers can simply purchase these items at their fixed price.Pricefalls Payments
Payment is made directly from the consumer to the business via one of two currently available payment gateways, Authorize.net or Paypal. When a buyer views an item detail page and clicks “buy”, the buyer is automatically redirected to the sellerʼs Paypal and is then able to submit payment. Buyers can submit payment using their own Paypal account or via credit card. The buyer receives a receipt generated from Paypal and also a confirmation from Pricefalls that the item has been successfully purchased.If a buyer has made a bid on an item and has won, the buyer can submit payment for the item by looking in the “Won Items” folder in “My Account”. The buyer is then directed to Paypal (or Authorize.net) to submit payment.
In order to link buyers directly to a sellerʼs payment gateway, the Paypal Id (email associated with the sellerʼs Paypal account) is imputed into the payment method field upon listing. This is done in both individual listings and bulk listings. In a bulk listing, all items are placed under one payment gateway, whereas in individual listings, payment options are done on a per item basis. Stores select their “Viable payment options” upon setup. The form of payment that a store accepts is displayed on the store page under the “Policies” tab as well as in every item detail page under the “Payment Methods” tab.
Although uncommon, in some circumstances a seller may not be able to accept payment. In some cases, Pricefalls is willing to accept payment for these companies as a dropship relationship.
Fees
Pricefalls derives revenues from sales commissions collected from merchants upon product sale. Commissions are designed in a sliding scale model, whereby percent-based fees decrease nominally as product prices increase. These product prices fall into three ranges, each of which is associated with a percent value fee. The final value commission is a sum of the applicable fees accumulated within each price interval.Service Marks and Slogans
Pricefalls, LLC has proprietary rights to its business name, “Pricefalls”, the Pricefalls.com logo, and the slogans “Where Your Bid Wins” and “Catch It While You Can.” The corresponding serial numbers for the service marks are http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77609332], http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77609341], http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77609698], and http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77840574]. The United States Patent and Trademark OfficeUnited States Patent and Trademark Office
The United States Patent and Trademark Office is an agency in the United States Department of Commerce that issues patents to inventors and businesses for their inventions, and trademark registration for product and intellectual property identification.The USPTO is based in Alexandria, Virginia,...
(USPTO) issued a Notice of Publication for the “Pricefalls” logo, (Serial #http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77609332]) and for the ʻPF” logo, (Serial #http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77609341]); for the slogan “Where Your Bid Wins”, (Serial #http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77609698]) on March 24, 2009; and for the slogan ”Catch It While You Can”, (Serial #http://tmportal.uspto.gov/external/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3iLEH9XEzcPIwMDEw9jA0-jsKAQrxBfAwNvQ6B8JJK8u1OIK1A-yNXCz9nQ2MDAiCLdBgR0h4Nci992vPIGEHkDHMDRQN_PIz83Vb8gNzTCIDMgHQDjF_k7/dl3/d3/L0lDU0lKSWdrbUNTUS9JUFJBQUlpQ2dBek15cXpHWUEhIS80QkVqOG8wRmxHaXQtYlhwQUh0Qi83XzhUT0U0RkgyMDA0SDMwSTJWUlRKVE0wMDIxL1p4UzExNjcwMDAwNS9zYS5nb3YudXNwdG8udG93LmFjdGlvbnMuRGV0YWlsVmlld0FjdGlvbg!!/77840574]) on March 22, 2010; In order to check the status of the applications enter the application serial numbers at the following URL: http://tmportal.uspto.gov/external/portal/tow.