Drop Til You Shop is an internet retailer with a difference. At any one time, the site has three items for sale and the price of each is dropping by the second. The catch is that the products are in limited supply and site users have to decide how long to wait before jumping in. Wait too long and the limited supply may be sold. Jump in too early and you could pay too much.
The site seems to be pretty addictive amongst bargain hunters, with statistics showing users staying around for an average of 30 minutes, and coming back later to check new deals. Nobody is told how limited supplies are, so that all adds to the tension.
This seems like a great way to whip up a buying frenzy amongst customers while ensuring that products sell at the best possible price. The regular retail model is inefficient in that it results in some customers buying at a lower price than they would have been prepared to pay, and other people not buying at all, even though the price they would be prepared to pay would still yield a profit.
There’s food for thought here I think. Is there a way you could offer your products or services on a fluid pricing basis? It’s not easy to do without annoying those paying a higher price, but if you can pull it off, it can certainly have a positive effect on profits.