The structure is a boon for the punter because the longer the auction lasts, the cheaper the item becomes. The auctions last a maximum of one minute, and only one auction goes live per day.
Dropit CEO and marketing manager Peter Howell says the site is a new auction experience which puts consumers first. It was developed by Mount Maunganui company Websoft.
“We’ve really been looking at how we can make online auctions more fun for people. Dropit is like nothing else on the market today, it's fast, it's super exciting and the items are all premium. The main thrill comes from the fact that the price is always falling instead of increasing which is the polar opposite to other auctions.”
While’ the lowest price wins may not seem the best profit-making strategy, Howell says Dropit provides an engaging promotional platform for retailers looking to profile their goods and services.
Currently Dropit is buying and running its own items, with some supplied by investors, but Howell plans to have retailers providing items when the website has its full launch December 1.
“Retail partners will provide the auction items in return for the enviable hype surrounding each daily auction.”
Howell says over a dozen retailers have already signed on, including Tauranga car retailer Farmer Autovillage, which has put up a Fiat Punto worth $16,940, and retailers such as Amazon Surf and Auckland sporting goods store Hyper Ride.
During the auction, punters can see how many others are vying for the item. Two hundred people registered in the first week, and winners have taken away an Apple iPad mini 2 for $273, and a GoPro Hero for $147, a $403 saving.
This week a Fitbit, iPod shuffle and a Bose Soundlink speaker will go up for auction while suspense builds for the Fiat Punto to go to auction on 16 December.
Dropit is not the first reverse auction site for Kiwi audiences to play. Air New Zealand has been running reverse auctions on Grabaseat since 2011.
A reserve is set for each auction but varies depending on route, number of seats available and class of cabin.
The auctions take place every Tuesday and an Air New Zealand representative says on average 20 to 30 seats are sold each week.