Salvage Bid is a company that puts damaged vehicles up for auction. This organization operates in an online environment. Therefore, this firm has an opportunity to interact with a great number of clients. In this case, the buyers are price-sensitive people, who want to purchase a car. These individuals may not have enough money to buy a brand-new car. Moreover, some of these individuals believe that a damaged vehicle can be repaired at a relatively lower cost.
However, one can also speak about clients willing to buy spare parts. This is one of the issues that should be considered because it is necessarily to understand the intentions of clients. In turn, the sellers are people do not know how to find potential buyers for the goods that they own. Additionally, it is possible to speak about people who may urgently need money for various purposes. These are some of the aspects that should be identified because they are important for understanding the functioning of this business.
In turn, the company can be described as an intermediary that helps buyers gain access to relevant information about potential sellers or available products (Salvage Bid). This approach has been adopted by many organizations that try to benefit from the growing supply of used or damaged vehicles in the country (Pride and Ferell 238). On the whole, one can argue that this auction sites can be viewed as a micro-economic market.
The functioning of this auction incorporates several elements. First of all, the buyers should be the registered members of this website in order to take part in the bidding. Moreover, the bidding itself lasts for a limited amount of time. The main benefit of this method is that it enables a seller to get the maximum price for his/her vehicle.
More importantly, online accessibility of this auction increases the number of potential bidders who may compete with one another (Baye 103). Later, a buyer can take the car from one of the locations. It is important to remember that the customers able to assess the degree of damage (Salvage Bid). So, as a rule, they can make an informed decision about the value of a vehicle. This opportunity is also of great benefit to clients who want to choose the best product.
It should be mentioned that the owners of this website do not disclose the information about the financial performance. They do not specify their net revenues or sales. Nevertheless, there are some data that can be very informative. For instance, every week its collection of vehicles is increased by 70000 new vehicles (Salvage Bid).
Therefore, customers can find choose from a wide range of products. Additionally, this organization has approximately 700 locations (Salvage Bid). Furthermore, the prices for vehicles can range from $50 to $3000 (Salvage Bid). The eventual price depends on the type of damage sustained by the vehicle or its model. This is one of the points that can be made.
Overall, these examples indicate that this micro-economic market can be very vibrant. To a great extent, this auction site offers opportunities for both sellers and buyers who want to carry out an economic transaction. The existence of such markets is critical for the development of the economy. These are the main arguments that can be put forward.
Works Cited
Baye, Michael. The Economics of the Internet and E-commerce, New York: Elsevier, 2002. Print.
Pride, William, and Ferrell, Oliver. Marketing, Cengage Learning, 2008. Print.
Salvage Bid. “About SalvageBid.” Salvage Bid, 2013. Web.