Three different auction methods are arranged in order, and there’s actually a purpose behind this, a clear purpose.
The first stage auctions off essential items; these goods, even if second-hand, have high practical value. As long as the pricing isn’t excessive, people can accept it.
But the auction rule is a quick grab; whoever raises their hand first gets ownership. This quick grab method greatly encourages unnecessary impulse, possibly leading people to raise their hand hastily, not even knowing if they need the item.
Aside from the first successful person, others will fail, instilling a subconscious belief that if they like something, they must raise their hand immediately.
The second stage bid auction is intended to hint to attendees what a reasonable price for a second-hand product should be compared to its original price through the reality.
Everyone has an internal calculation, and when the concept that fifty to seventy percent is a reasonable price gets rooted in their minds, they begin to have a rough idea of how much a second-hand product should be sold for.
See, activated consumer impulse and the clarity on price position make the third auction stage a different kind of focus.
There’s no need for Lynch to arrange people to inform them; they’ve already started estimating these products in their minds, even if they don’t intend to buy, they still appraise, it’s a habitual thought process.
When a product’s quote falls below a certain range, a gate opens, and impulse buys soar far beyond anticipated returns.
Indeed, this mode of auction is quite similar to the second stage; as long as someone bids, and others don’t, a house could be sold for ten bucks.
The third stage is the same; as long as everyone holds back, the product drops to a dollar, then everyone competes for the chance.
Yet the complexity of human nature is unpredictable, with selfishness, which is the core of Lynch’s second-hand product auction strategy, selfishness.
When the price meets expectations, people start to panic, growing uneasy, fearing someone might suddenly raise their hand and buy the product, making them hesitant.
If someone raises their hand during this, resulting in a failed quick grab, they’ll instinctively increase their estimation of the final transaction price by roughly five percent.
Moreover, the third-stage auctioned products are all new and unused, further stimulating people’s desire to buy these possibly useless items.
Led by the first two auction stages, the third stage is truly profitable; these are flashy yet insubstantial items hard to sell in genuine second-hand transactions, but here and now, they become hot commodities.
As the hammer falls on the first item, the second item is quickly sold, slightly above the price range of the first item’s transaction. Most following items follow suit, above fifty percent.
Aside from a few truly insignificant products dropping to about thirty percent before selling, most remain around fifty-five to sixty percent.
Seeing this, Lynch knows his auction has succeeded, and the enormous transaction amounts and sales will draw society’s attention; even without effortful marketing, the next Saturday’s auction will be crowded.
Curiosity is a trait of intelligent creatures; they’ll want to see firsthand just what kind of auction can make people crazy.
The auction planned to end at six in the evening dragged on past seven due to daylight saving in Sabin Federation; the skies grow dark later. Of course, to ensure visibility, Lynch temporarily secured high-power lamps from the warehouse management company.
The host, under the lights, worked briefly before being moved to tears; fortunately, he persevered till the end, earning an additional two hundred dollars from Lynch as compensation for the extended time.
After a thousand belts were claimed, the auction came to a successful close.
The scene was left to the management company of the Warehouse District to tidy up; they were paid to provide professional service, while Lynch brought everyone back to his office.
Vera was at the event today, not just her alone but two accountants about her age, a man and a woman, compiling today’s sales data.
In one afternoon, nearly forty-nine thousand in second-hand goods were sold, almost fifty thousand, a number shocking everyone, as they’d never thought second-hand items could generate such significant economic value.
Lynch just nodded calmly, a bit regrettable that it didn’t exceed fifty thousand, but overall, he’s pleased.
He cleared his throat, instantly drawing everyone’s attention; he knew the eager thoughts behind each pair of eyes and didn’t keep them waiting. He directly stated, "A successful day, I’ll omit further words, next is profit sharing."
He perused some forms in hand, "We’ll establish an office emergency fund; henceforth, every leftover will be wiped away and deposited into this fund to handle unexpected situations..."
Every beneficiary agreed with no opposition, and it passed.
"Forty-nine thousand, minus ten percent management fee, leaving forty-four thousand one hundred, how much did we pay for this batch of products?" Lynch looked at Vera; while the forms showed the figures, he wanted someone to speak them out, not himself.
Vera quickly reported a number, "Thirty-two thousand two hundred seventy-nine dollars and fifty cents."
Lynch nodded, "Subtracting these costs, we profit...," he frowned calculating, "around twelve thousand, then we split it equally, today you’ll receive approximately six thousand dollars, gentlemen!"
The young men became thrilled, Lynch smiled and instructed Vera to prepare the accounts and distribute the earnings.
Richard, including Wood, and all the young folks finally understood why Richard praised Lynch with such fervor; he’s indeed a legend, a myth of creating wealth miracles.
There are seventeen people here; six thousand, even divided equally, gives a few thousand per person.
If they worked in an ordinary factory or company, it might take them a year to earn this amount, but here, they’ve been in Lynch’s team for just over a week and gained what others might spend a year striving for without food or drink.
This immense surprise blended with some uncertainty, making each face flush, cheerfully discussing today’s auction events while Lynch watched on.
About ten minutes later, Vera handed the form to Lynch; after thanking her for her hard work, he told them to wait, as he planned to take everyone out for a good meal.
Lynch glanced at the form briefly, slightly curved his lips, and shared the form with the others.
Seeing this form, everyone anticipated Wood would be the sales champion, after all, he sold a house; some thought it should be Richard, who persuaded many to buy large items.
However, unexpectedly, the sales champions were those kids, whose presence was scarcely felt.
Even the kids themselves couldn’t believe the form, as they hadn’t done much beyond distributing leaflets.
They didn’t urge customers to compete for quick grabs like Richard, nor had Wood’s luck, yet how did they become sales champions?
Lynch knew the answer, having planned it himself, but he needed them to think it through on their own, for only conclusions they reached alone would be believed unstintingly as truth.
Recently, there’s lots of talk about unreasonable prices; I think people shouldn’t bring current consumption standards into the context of a different era.
When workers’ salaries were just thirty-two bucks and fifty cents, a radio cost two hundred, and people still scrambled to spend money on it.
When workers earned only sixty-some bucks, a TV took three years’ savings without eating or drinking to buy, yet people still saved up for it.
Umbrellas issued by units not only lacked oil but also came with a box of talcum powder; after use, wash, dry, and coat with talcum, they could be reused.
Around 1990, the average salary was one or two hundred; I visited a place where packed lunches cost fifteen a portion, and folks could only afford ten meals a month, yet nobody complained about it being unreasonable.
Don’t impose a richly materialistic, technologically advanced era over a completely different time.